wFRK Now Accepted as Collateral to Mint jEUR on Jarvis Network
In a significant development for the DeFi markets, wFRK, tokenized French 360 days T-Bills (3.38% APR) from KUMA is now accepted as collateral to borrow jEUR on the Synthereum protocol, developed by the Jarvis Network. This collaboration between KUMA and Jarvis Network promises to bring new opportunities, enhance the liquidity of digital assets backed by real-world assets, and unlock the yield potential for DeFi users.
You can now borrow jEUR against wFRK here.
The Convergence of Two Worlds: wFRK from KUMA and jEUR from Jarvis
wFRK, an erc-4626 wrapper of FRK, a KUMA interest-bearing token backed by KUMA NFTs, themselves backed by French 360 days T-Bills offering 3.38% APR. This innovative solution empowers users to benefit from the stability of interest rates associated with French sovereign bonds while actively engaging in the dynamic world of DeFi.
On the other hand, Jarvis Network has launched the Synthreum protocol for buying, selling and , borrowing synthetic fiat currencies aka stablecoins. jEUR is one of the primary synthetic currencies offered by Jarvis, designed to track the value of the Euro.
Diversification of Collateral Options and Yield Generation
The integration of wFRK as collateral for borrowing jEUR provides users with more diversified collateral options. So far, DeFi protocols have mainly relied on cryptocurrencies like Ethereum (ETH) as collateral. However, what sets wFRK apart is that it generates yield (3.38% APR) such as wstETH, making it an attractive choice for various DeFi strategies:
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Very stable collateral option: wFRK is backed by French sovereign bonds, offering users a stable collateral option. The stability of these bonds provides a strong foundation for jEUR, reducing the risk associated with price volatility.
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Paid to Borrow & Off Ramp: Deposit wFRK on Jarvis to Borrow jEUR, Swap jEUR for EURe then send EURe to Bank Account via Monerium. With this strategy, you still earn yield from your initial wFRK deposit and use EURO from your bank account.
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Yield Leverage: Deposit wFRK (3.38% APR), Borrow jEUR (-0.5% one time), Swap jEUR for wFRK, Deposit wFRK as collateral, Repeat.
Balancer Gauge for wFRK/PAR/jEUR Pool
A recent development in the DeFi space is the proposal to enable a Balancer gauge for the wFRK/PAR/jEUR (p-cs-kp-eur) pool. This initiative aims to increase the liquidity of wFRK, jEUR and PAR.
The wFRK/PAR/jEUR pool serves multiple purposes, including providing a fiat gateway for jEUR, wFRK and PAR holders, offering opportunities for arbitrage to maintain the peg of these assets, and boosting liquidity across the entire ecosystem.
Collaboration and Growth
The collaboration between KUMA, Jarvis Network, and the proposal for the Balancer gauge highlight the dynamic nature of the DeFi ecosystem. It showcases how different protocols and tokens can work together to create a more robust and interconnected decentralized finance landscape.
As the DeFi space continues to evolve, users can look forward to more innovative collaborations and opportunities to optimize their strategies, all while generating yield and enhancing the overall stability of the market.
In Conclusion
This integration of wFRK as collateral for jEUR on Jarvis Network, along with the proposal for a Balancer gauge, marks another significant step towards the maturation of the DeFi ecosystem. It offers users new collateral options, enhances the security and stability of synthetic assets, and unlocks the potential for yield generation within DeFi strategies. Furthermore, it provides broader access to Real World Assets (RWAs), particularly the French sovereign bonds, bridging the gap between traditional finance and the decentralized world.
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