What Use Cases does Stable Jack offer for Protocols?

Stable Jack empowers partner protocols by enabling them to develop new use cases for their assets, directly increasing demand for those protocols.

  1. Liquid Staking and Liquid Restaking Protocols

LST and LRT protocols can collaborate with Stable Jack to offer new yield and leverage exposure opportunities to their users. With Stable Jack, LST and LRT protocols can potentially double or even triple the yield they offer, while also providing users with leveraged exposure to the LST/LRT asset without the risk of liquidation.

Given that the LST and LRT market operates on a “winner-takes-all” basis, it is crucial for such protocols to partner with Stable Jack to succeed in the market.

  • Yield Token holders can access leveraged or fixed yield opportunities on LST/LRT assets while maintaining their principal.

  • Volatility Token holders can achieve leveraged long exposure on the collateral asset without the risk of liquidation or the need for funding fees.

  1. Lending Protocols

Lending protocols often find it challenging to stand out in the market. Most can only offer variable yields, and those that provide fixed yields have struggled to achieve product-market fit due to suboptimal user experience and capital efficiency.

By partnering with Stable Jack, lending protocols can offer fixed yields to lenders while improving user experience and capital efficiency.

  • Yield Token holders earn a fixed yield.

  • Volatility Token holders access leveraged yields and token rewards.

  1. Decentralized Exchanges (DEXs)

Despite significant advancements, impermanent loss caused by LVR remains a major issue for decentralized exchanges. This problem forces DEXs to rely on unsustainable token incentives, raising concerns about the future of AMMs.

Meanwhile, CLOB-based exchanges struggle to attract liquidity from retail users, and perpetual DEXs like Jupiter and GMX cannot offer fixed yields or leveraged long exposure on their LP tokens, limiting them to providing a single source of yield for LPs.

Stable Jack solves this issue by enabling DEXs to offer both fixed yields and leveraged long exposure on LP tokens.

  • Yield Token holders earn a fixed yield.

  • Volatility Token holders gain access to leveraged trading fees and leveraged long exposure to the LP token price, meaning they are exposed to an index token composed of the pool's pairs.

  1. Yield-Bearing Asset Issuers

Yield-bearing assets have gained substantial interest from investors due to their diverse yield opportunities. However, none of the yield-bearing asset issuers have been able to offer fixed yields to investors so far.

Issuers of yield-bearing assets such as Sky (formerly Maker DAO), Ethena, Usual, and Frax can partner with Stable Jack to unlock new use cases by offering fixed yields on their assets. By leveraging Curated Pairs, these issuers can allow investors to access sophisticated yield strategies that offer higher yields than the base yield.

  • Yield Token holders earn a fixed yield.

  • Volatility Token holders gain access to leveraged yields.

  1. Governance Tokens with Revenue-Sharing Feature

Many DeFi tokens have limited use cases beyond speculation. Some protocols have addressed this by introducing revenue-sharing mechanisms, but most users are not attracted to variable and uncertain yield opportunities. By utilizing Stable Jack, protocols can offer fixed or leveraged yields on their governance tokens.

  • Yield Token holders earn a fixed yield while maintaining exposure to the governance token.

  • Volatility Token holders earn leveraged yields while maintaining exposure to the governance token.

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