The Mechanism Behind Stable Jack

Stable Jack offers structured products with different risk profiles. These structured products can be used for any assets including;

• Volatile cryptocurrencies (BTC, ETH, or AVAX)

• Yield-bearing tokens (stablecoins, LP tokens)

• Bonds (T-bills, eurobond, corporate bonds)

• Stocks (NVDA, AAPL, TESLA)

• Commodities (gold, silver, copper)

Stable Jack's smart contract divides the collateral assets into two tokens. These tokens are called Yield Token (senior tranche), and Volatility Token (junior tranche). While the users maintain their principal, the yield and volatility of this collateral asset are exchanged between two different tokens.

Yield Token holders get exposed to the yield of the collateral. Since they are also exposed to the yield of the collateral that Volatility Token holders deposited, they are able to get leveraged yield returns.

Volatility Token holders get exposed to the volatility of the collateral. Since they are also exposed to the volatility of the collateral that Yield Token holders deposited, they are able to get leveraged returns.