Summary:
Enable a Balancer gauge for the BRZ - jBRL stable pool (coined 2brl) on Polygon.
BRZ and jBRL are both Brazilian Real stablecoins. BRZ is backed 1:1 by Brazilian Real (BRL) and issued by Transfero. jBRL is backed by various collateral types (BRZ, USDC, etc.).
Jarvis Network and Transfero co-write the proposal.
References/Useful links:
Jarvis Network:
Link to:
- Website: jarvis.network
- Documentation: (can’t put 2 link in a post because I am a new member)
- Code: (can’t put 2 link in a post because I am a new member)
- Social: (can’t put 2 link in a post because I am a new member)
- Audits: (can’t put 2 link in a post because I am a new member)
Transfero:
Link to:
- Websites: transfero.com
- Social: (can’t put 2 link in a post because I am a new member)
- Audits: (can’t put 2 link in a post because I am a new member)
Protocol Description:
Jarvis Network
Jarvis Network is an ecosystem of protocols and applications to bring decentralized finance to real use cases. Its first protocol, Synthereum, allows borrowing and exchanging synthetic fiat currencies (jFIATs) on multiple EVM-compatible networks.
The Synthereum protocol has four modules:
- Liquidity Pools: exchange jFIATs back and forth for USD-stablecoins or other jFIATs without price impact at the Chainlink price feed.
- Credit Lines: borrow jFIATs against various collateral types.
- Wrappers: convert non-USD stablecoins for their jFIATs equivalent at a 1:1 ratio.
- Printers: mint uncollateralized jFIATs for flash loans, seeding money markets, or liquidity pools.
Most jFIATs have a fiat on and off-ramp (Mt Pelerin), can be lent or borrowed on money markets (Midas), can be used for on-chain and off-chain payment (Request, Superfluid, Mt Pelerin) or for earning yield (Beefy).
Transfero
Transfero Group is an international financial solutions company based on blockchain technology in the Crypto Valley, Switzerland. Its objective is to connect emerging countries to the global market through a platform of financial solutions based on blockchain infrastructure, providing greater efficiency, flexibility, and access for people and businesses.
Transfero also developed BRZ, a stablecoin backed 1:1 by Brazilian real (BRL), to give South Americans a reliable asset to the blockchain industry. The BRZ token is live on Algorand, Binance Smart Chain, Ethereum, Solana, Polygon, and Stellar. BRZ was featured in a World Economic Forum panel in 2020.
BRZ is integrated with fiat on and off-ramp (BityPreco) and crypto-card solutions (Wirex) and can be borrowed and lent on money markets (Midas).
Motivation:
The role of the 2brl pool is to increase the stability of BRZ (1), the on-chain liquidity of both BRZ and jBRL (2), and connect the Transfero and Jarvis ecosystems (3). Together, these 3 points allow for building a Brazilian DeFi ecosystem.
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BRZ peg: since jBRL can be exchanged for USDC back and forth at the BRLUSD Chainlink price feed and without price impact, arbitrages can be performed between the Balancer pool and the Jarvis Liquidity Pool to help maintain the BRZ peg.
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On-chain liquidity:
- BRZ: since jBRL can be exchanged for USDC without price impact, then exchanging jBRL or USDC for any other token has the same price impact; users can swap BRZ to jBRL and then to USDC to access the latter’s liquidity or vice versa.
- jBRL: jBRL main liquidity source is the Jarvis Liquidity Pool (primary market); without entering too many details, if the pool performs well, it will increase the number of jBRL minted, which will increase the liquidity in our Liquidity Pools and our Wrappers; also, it is essential to us to have more liquidity sources (secondary markets); this is why we are launching this pool as well as other pools (jBRL-USDC and jBRL-ETH, but this will be for another proposal).
- Connect ecosystems: the 2brl pool connects Transfero and its BRZ (essentially a fiat on and off-ramp for Brazilian DeFi users) to the jBRL’s ecosystem, enabling multiple use cases.
- Credit without FX risk: borrow jBRL, swap for BRZ, then redeem BRL.
- DeFi on-ramp: use BRL to mint BRZ, then access yield or on-chain liquidity.
- Remittance: connect BRZ fiat on and off-ramp to any other jFIAT or USDC fiat on and off-ramp (we already performed payments between Brazil and Mexico and Brazil and France on the BNB Chain).
A few notes:
- Jarvis LTD has started building a position in BAL and AURA. The Jarvis Network treasury (governed by the JRT token, which will soon be revamped using the ve-model, a new token called JARVIS, and an 80/20 JARVIS-ETH pool) is planning on building the same position.
- Jarvis LTD and the Jarvis Network treasury will both supply liquidity in the Synthereum Liquidity Pool. They will use up to 50% of the fees generated through the Liquidity Pools to bribe veBAL voters (we have already done this successfully for a few months now on BNB Chain with Ellipsis / DotDot).
- Moving forward, we will deploy a boosted pool using Midas whenever possible to avoid fragmenting the liquidity between AMM and money markets and earn higher real yield.
- This proposal is the first of many, as Jarvis Network is moving all their liquidity pools from Curve (stable pools) and Uniswap/Sushiswap/Kyber (volatile pools) to Balancer.
Specifications:
- Governance:
- Jarvis: no on-chain governance (vote via snapshot) and decisions are executed through a ⅝ multi-sig (only one team member in the signers).
- Polygon: 0x2709fa6FA31BD336455d4F96DdFC505b3ACA5A68
- Ethereum: 0x2CA74be68f0A0e053F030D143C1376806BaBEdc9
- Gnosis Chain: 0xaE1026699f47B1fC572D65E1784b12c3A2574A25
- BSC: 0x38329F26a075D53324EFd6e5F53869354Fa1cfBc
- Avalanche: 0x2507A0d8E2aBe9464Ba2d9ddcA38A5ee5e60A434
- Optimism: 0x40bd131fA9933D592344783E38f0c0F27767d9FA
- Transfero: centralised entity.
- Oracles: jBRL uses BRLUSD Chainlink price feed; BRZ token does not have a price feed
- Audits:
- Jarvis: GitBook
- Transfero:
- Centralizing vector: jBRL is mainly collateralized by USDC; BRZ is a fiat-backed stablecoin issued by a centralized entity.
- Market history: jBRL has been live since February 2022 (on the BNB Chain); it has traded a bit off its peg during the FTX crisis due to a too-high supply of jBRL on a money market vs. a too-low number of jBRL minted through the Liquidity Pool (the number of jBRL that you can sell in the Liquidity Pool = the number of jBRL that people has bought; so people borrow a lot of jBRLs from the Credit Line or which have been minted through the Printer, and sell them all through the Liquidity Pool, it can prevent other jBRL holders from selling jBRLs through the pool, preventing any arbitrages from happening). We have solved the issue by withdrawing jBRL from the money market, forcing users to repay their loans by buying jBRL from the Liquidity Pool. At the same time, BRZ had an issue with its peg because its primary off-chain market was on FTX, and the pool used a wrapped BRZ from Solana. Besides last week’s event, both stablecoins have maintained their peg since the pool launch (on the BNB). We have learned how to prevent these situations from happening again or fix them quickly. Two other rare cases can prevent users from buying jBRL from the Liquidity Pools (again leading to preventing arbitrages from happening), and we also know how to mitigate them (currently working on it as we speak).
- Value:
- The 2brl pool will act as the main route for arbitrages and the use cases mentioned above (on-chain liquidity, credit without FX risks, etc.).
- It will be our first step toward moving our ecosystem to Balancer’s.
Contracts
- 2brl Balancer Pool (Polygon): 0xE22483774bd8611bE2Ad2F4194078DaC9159F4bA (AMP 200 because both tokens are redeemable).
- jBRL token (Polygon): 0xf2f77FE7b8e66571E0fca7104c4d670BF1C8d722
- jBRL (Polygon Synthereum Liquidity Pool): 0x30e97dc680ee97ff65b5188d34fb4ea20b38d710
- BRZ token (Polygon): 0xf2f77FE7b8e66571E0fca7104c4d670BF1C8d722
- Gauge: 0x5aeB4e367060EE08F37a7c65F57bA9f1C1895F92