Jigsaw USDPrice

(JUSD)

Dynamic collateral is the protocol's primary innovation. Unlike traditional decentralized debt platforms where assets are locked and idle, Jigsaw allows users to reallocate their deposited collateral across various whitelisted yield-generating protocols. This enables users to optimize their yield strategies without needing to close their loan or repay their jUSD. It transforms collateral from a static deposit into an active, yield-bearing asset, providing greater capital efficiency for borrowers within the ecosystem.

To mint jUSD, users deposit supported assets such as liquid staking tokens, wrapped Bitcoin, or stablecoins into the protocol. The cost structure is designed to be transparent: there is typically a one-time minting fee ranging from 0% to 5% when opening a debt position. A significant advantage of Jigsaw is its 0% ongoing borrowing interest rate, meaning the initial fee is the primary cost for maintaining the loan, making it a cost-effective solution for liquidity.

$JIG is the native governance token of Jigsaw Finance. Holders are expected to receive a portion of the platform’s revenue and benefit from buyback-and-burn mechanisms. Users can qualify for the $JIG airdrop by earning "jPoints," which are accumulated by depositing collateral and minting jUSD. These points serve as the primary metric for determining eligibility and allocation during the Token Generation Event (TGE).

Jigsaw employs several mechanisms to keep jUSD pegged to the US Dollar. First, the protocol uses overcollateralization, ensuring every jUSD is backed by assets exceeding its value. Second, a liquidation system monitors the "Health Ratio" of positions; if collateral value drops below a safe threshold, the position is liquidated to maintain protocol solvency. Finally, users can swap jUSD back for collateral or utilize external liquidity pools to exit positions, providing a market-driven path to maintain the peg.

Jigsaw integrates with a variety of decentralized finance protocols to allow collateral to remain "active." These whitelisted integrations include leading lending platforms, yield trading protocols, and liquid restaking services. By partnering with these established ecosystems, Jigsaw allows users to earn diverse yields—such as lending interest or restaking rewards—directly on the assets they have already used as collateral for their jUSD debt.

Safety is a core priority for the protocol. Jigsaw Finance has undergone rigorous security reviews and public audit competitions conducted by reputable security firms. These audits specifically focus on the "Strategy Manager" and "Holding Manager" contracts to identify and mitigate potential vulnerabilities. This commitment to security ensures that the mechanisms governing collateral movement and stablecoin minting meet high industry standards for user protection.