Jigstack DAO - a DeFi protocol adopting a conglomerate structure, projects Ethereum to maintain its dominance as a leading smart contracting platform and the home of open finance, a recent update reveals.
Providing Value to DeFi Users
With over 200,000 developers actively working on the open-source protocol, it is their assessment that Ethereum will be the foundation for millions of dApps and financial primitives.
The DeFi project hosts commercial tools that users can leverage to generate extra revenue, therefore helping drive adoption beyond the current experimentation.
Jigstack is deploying as a decentralized autonomous organization (DAO) that governs a portfolio of community-approved assets and tools.
Its native token is called Jstack--a governance token also used in distributing revenue.
Standardization, Uniformity, and Empowerment
According to their whitepaper, Jigstack wants to bring DeFi to the masses. They will achieve this through standardization and uniform quality code.
All assets deployed through the DAO will be audited and remain non-custodial. Through auditing, Jigstack DAO says dApps become resilient.
Besides, the community will also ensure the asset remains secure and trusted. The DAO says that by standardizing and ensuring the uniform quality of all smart contracts controlling each deployed asset, the performance of each dApp will be higher.
These combine ensuring users can confidently manage their assets, knowing that their investments are safe.
Jigstack DAO's goal is to empower the end-user as per the anchoring principles of distributed ledger technology, which depends on the masses for continuity.
The objective of the DAO is not to disrupt as mainstream DeFi protocols state. Instead, they want to make intermediaries obsolete while empowering their users through risk management, standardization, and quality control.
The Microsoft Way
According to trackers, DeFi protocols in Ethereum alone manage over $25 billion of different assets. However, considering Ethereum and DeFi dApp deployment's open nature, most are concentrated around serving the same client base. The most dominant DeFi protocols are in lending/borrowing and DEXes-that compete with centralized exchanges like Kraken and Binance.
Despite the growth of DeFi and their governance tokens over the last few months, there have been exploits. Because of the absence of rigorous auditing of smart contracts caused mostly by the lack of initial finances, projects have lost millions of user funds.
For small but quality projects that would otherwise not find exposure or the finances for launches, the DAO ensures that they quickly raise funds and receive market exposure.
Jigstack DAO draws inspiration from Microsoft. The software giant is now one of the world's most valuable companies. In their early days, skeptics thought it wasn't feasible to own personal computers. Forty years later, Microsoft software powers billions of computers and handsets across the world.
Following Microsoft, Jigstack DAO is now seeking to empower potent projects and users using community-facing decentralized finance protocols and commercial solutions.
Bonded Finance and Lemonade
Jigstack DAO's algorithmic crowdfunding model enables quality projects to access funding easily. It is a divergence away from the limitation of standard fundraising models through equity issuance.
Jigstack DAO has collaborated with Bonded Finance, who were by protocol's upcoming DeFi token Launchpad, Lemonade. The platform is modeled after the DAO.
By working together, they will pick out quality projects. Bonded Finance aims to push the boundaries of DeFi by deploying experimental smart contracts in Ethereum for yield maximization.
Their automated model--Bonding, reduces risks and unlocks value estimated at over $50 billion, helping small but quality projects achieve their full potential.
Liquidity and Project Exposure
Projects launching on the Lemonade--and following Bonded Finance integration, benefit from better liquidity. Quality projects chosen by Bonded Finance will appear in the upcoming protocol. Bonded Finance will also move all unlocked tokens to its collateral smart contracts.
As such, projects that crowdfund on the Lemonade will access lending and borrowing services.
Through this partnership, Jstack token holders also benefit. They can take out loans using Jstack tokens as collateral while not necessarily having to liquidate their tokens. This way, token holders can unlock capital.
Depending on the lock-up period's duration and the collateralization amount, the token holder also benefits from capital gains.
Token holders also earn extra revenue from Jigstack DAO's Ethlink (a marketing reward tool) and the protocol's automated MLM sales tool. Using Ethlink, holders can campaign for any of the supported projects. An affiliate link is generated and connects directly to their account.
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