What is Project JellyFi? Basic information about the JellyFi token

• JellyFi project overview 
• What is Project JellyFi?
• What are the highlights of the JellyFi project?
• JellyFi's products
• Roadmap of the JellyFi project
• JellyFi developers, investors and partners
• JellyFi token overview
• The future of the Jellyfi project and whether to invest in JellyFi tokens or not?
• summary

JellyFi project overview 

What is Project JellyFi?

JellyFi is a protocol that applies blockchain technology to DeFi decentralized cryptocurrency lending and borrowing transactions. It allows borrowers to access crypto loans without having to collateralize assets. 

JellyFi can benefit both lenders and borrowers. Liquidity providers will be able to achieve higher lending rates compared to other mortgage lending protocols. Borrowers (including audited DApps, protocols, DAOs) will have a constant, flexible source of liquidity.

On the JellyFi platform, borrowers must pass a thorough vetting process before being accepted and whitelisted. 

What are the highlights of the JellyFi project?

Most DeFi applications today require borrowers to collateralize some digital assets more than their loans to limit the risk of default. This not only limits many use cases of the borrower's capital, which will not be able to get liquidity whenever they want, but also limits the profitability of the lender.

Capital efficiency (Effective use of capital) 

JellyFi is a capital-efficient DeFi lending protocol. Borrowers are not required to register collateral, giving them more flexibility in managing and using capital. When using the platform, they only pay maintenance fees on unused capital, interest and fees on used capital.

Instead, the borrowing institutions (including audited protocols and DApps) must pass a thorough vetting process before being accepted into the JellyFi platform in order to protect the lender from risk. default risk. 

Recurring Loan (Recurring Loan) 

Unsecured crypto loans are loans that do not require collateral to obtain capital. Borrowers will be provided with a recurring line of credit in a liquidity pool that allows them to withdraw their crypto at any time to meet their growing needs, similar to a revolving line of credit. .

In addition, these loans are similar to revolving lines of credit in that the borrower only needs to pay a maintenance fee for the unused capital in the liquidity pool.

JellyFi will grant borrowers a line of credit through a liquidity pool limited by the maximum amount they can withdraw. Borrowers can withdraw loans or deposit repayments in that liquidity pool depending on their capital usage needs. The borrower will pay the maintenance fee on the unused capital, and pay interest on the withdrawn capital in the pool.

Bid order book 

The bid order book acts as a bidding mechanism. Lenders have the right to set their expected interest rate on the capital they are willing to lend to others. Borrowers will always start with the lowest bids (or lowest interest rates) and then move on to higher bids, which are the lending rates on the JellyFi marketplace.

NFT – Non-fungible Token

Once the lender selects a suitable borrower, a new NFT ( Non-fungible Token ) will be created on the chain representing the agreement between the two parties, recording their transaction. 

Each NFT is a digital asset built on the blockchain that is unique and irreplaceable. NFT will display the necessary information about the agreement between the borrower and the lender, can be looked up on the chain at any time and can even be sold to others. After the loan is repaid, the NFT will be burned. 

JellyFi's products

Lending

Lenders are liquidity providers on the JellyFi platform. They can control risk better than other decentralized lending platforms, have granular control over their portfolio. 

With the JellyFi platform, lenders can assess their own risk, specify a desired lending rate, and choose a borrower. They don't have to lend money to people they don't trust, reducing the risk of default more thanks to a thorough whitelisting process. 

Features of Lending in JellyFi

Choose a Borrower

Borrowers are thoroughly vetted by JellyFi before being added to the whitelist. Only trusted, audited protocols or DApps are allowed to use the JellyFi platform. 

Lenders can completely choose who to lend. Only one liquidity pool is open for each borrower. 

Ownership for lender – Lender's rights

The JellyFi platform allows lenders to earn higher returns while remaining in control of their portfolios, with the right to choose borrowers and lending rates. 

There will be no idle capital on the JellyFi platform. Lenders still make a profit even if they haven't found a suitable borrower. In addition, they can control multiple portfolios on the JellyFi platform.

Choose interest rate  

On the JellyFi platform, lenders specify a desired interest rate on their funds. When a borrower uses their crypto credit line, the lender earns the interest rate they initially set. In addition, they still enjoy the risk-free rate and maintenance fees on any unused capital. 

Yield optimizer – Optimizing yield

Lenders can still earn profits on JellyFi platform even if they have not been matched with borrowers. In the meantime to find a suitable borrower, the lender's funds are sent to a trusted third-party liquidity provider so they can earn a risk-free APY (Annual Percentage Yield) other than fees maintained by JellyFi.

No dilution for existing lender – Not diluted by the number of lenders

In case, there is a credit line being used in a liquidity pool and new depositors join this liquidity pool, will the interests of previous participants be affected? Are not?

The answer is no on the JellyFi platform. JellyFi will not dilute the existing number of lenders. That is, existing lenders continue to enjoy their chosen loan interest rate until the loan is repaid. New lenders that provide additional liquidity to the pool will receive the lending rate of their choice after the borrower reuses this line of credit.

Non-fungible liquidity & NFT

After the lender sets their desired interest rate and deposits the money into the borrower's bid order book, they will receive an NFT representing their position in the transaction. 

Lenders can sell that NFT along with other digital assets tied to it, whether they're on loan or waiting to be matched. When selling the NFT, the position is also sold and when the position is revoked i.e. the borrower repays the loan, the NFT will be burned.

Borrowing

Borrowing institutions on the JellyFi platform are audited protocols or DApps. In order to be able to borrow the above cryptocurrency without collateral, borrowers must pass a thorough censorship process before being added to the whitelist. 

Once whitelisted, the borrower is automatically paired with the lender. There are no additional credit check requirements for borrowers.

The main liquidity pool is a recurring line of credit that the borrower can access and withdraw at any time. Borrowers can withdraw from this liquidity pool as they see fit. They only pay a maintenance fee for the unused capital. Interest and principal of crypto loans are repaid at maturity. 

Features of Borrowing in JellyFi

Rate discovery – Find rates

Lenders have the right to specify the interest rate they expect. Borrowers will always prefer to borrow loans with lower interest rates. 

Borrowing and lending is done using smart contracts, which eliminate the intermediary costs of third parties. 

Fixed borrowing rate & term – Terms and interest rates are fixed

Interest rates for loans on the JellyFi platform are selected by the lender and will be fixed for the life of the loan. Borrowers are required to pay this interest rate on used funds and a maintenance fee on unused capital. 

The maximum loanable amount will be limited and a maintenance fee is applied to this amount.

Revolving loan 

Similar to a revolving line of credit, the JellyFi platform offers a crypto credit line in the form of a liquidity pool, which borrowers can withdraw at any time with an amount according to their capital needs. 

A liquidity pool is set up for specific borrowers with loan terms agreed in the bid order book including interest. Whether the borrower no longer needs to borrow money or the terms of the loan have been finalized, this liquidity pool is still available so that borrowers can quickly and easily borrow again when they need capital. 

Instant bond issuance 

On some DeFi protocols, borrowers must submit a loan request and then wait until they are selected. With the JellyFi platform, since the borrower has completed the review and is whitelisted, they can borrow and repay from their liquidity pool as needed, within a pre-agreed maximum limit. . 

Roadmap of the JellyFi project

There is still no detailed Roadmap of the project, TraderH4 will update as soon as information is available.

JellyFi developers, investors and partners

Development team

JellyFi's four co-founders are all from ConsenSys: CEO Alexis Masseron, CTO Stéphane Coquet, Research Director Charlotte Eli and Principal Engineer Sylvain Laurent. 

Investors

The project has raised US$4.4 million from the Seed Round. Leading the first round of funding is an investment company specializing in blockchain and cryptocurrency Lemniscap. 

In addition, the project also attracted the participation of other organizations such as: ParaFi Capital, Tioga Capital, White Star Capital, DeFiance Capital, True Ventures, Digital Currency Group, Genesis, Divergence Ventures, AngelDAO and some investors. other. 

This money will be used to support the development of JellyFi through R&D, performing multiple audits. 

JellyFi token overview

Currently the project has not issued tokens. 

The future of the Jellyfi project and whether to invest in JellyFi tokens or not?

The JellyFi project is creating a more capital efficient environment for decentralized crypto loans through the DeFi lending protocol using blockchain technology. This will benefit those who need to use capital and also for those with idle capital who want to invest profitably.

Decentralized lending is a topic that is receiving a lot of attention from the DeFi community. Decentralized loans are designed by JellyFi to act as a revolving line of credit, providing flexible, regular liquidity to meet the growing demand in the overall development of the market. cryptocurrency. 

It can be seen that the JellyFi project was highly appreciated by investors when it received an amount of up to US$4.4 million from well-known investment organizations right in the first funding round. The project development team are also experienced talents in the blockchain technology industry. 

Currently, it is still quite early to evaluate whether to invest in JellyFi tokens or not, investors can follow the updated news on TraderH4 every day to receive more information about the project before making decisions. invest yourself.

summary

JellyFi is a new decentralized lending platform that has opened up a great environment for collateral-free crypto loans, supporting the increasing capital demand of protocols, Potential DApps. While waiting for more information of the project, you can refer to other potential projects on TraderH4 .

Or investors can learn about the project on official communication channels such as:

Website | Twitter | Discord | 

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