What Is Jade Protocol (JADE)?
Jade Protocol (JADE) is a decentralized blockchain platform that reserves cryptocurrency on the Binance Smart Chain (BSC), a parallel chain that operates smart contracts on the Binance exchange. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in protocols on the blockchain. The Jade Protocol Treasury holds crypto assets as reserves.
According to JADE documents, Jade Protocol is a fork of OlympusDAO. Like Jade Protocol, OlympusDAO is a decentralized reserve cryptocurrency platform. OlympusDAO is based on its primary token (OHM); and a range of Olympus treasury assets backs each OHM token. The main difference that came after the forking lies in the transaction cost. A general transaction over BSC costs around 50 cents. This low transaction cost enables the treasury to compound more frequently. Besides this, after forking, Jade Protocol has also allocated a particular portion of the treasury for various usages, including marketing.
Further, JADE is the native token of the Jade platform. JADE is a free-floating cryptocurrency backed by the treasury supply of the stablecoin BUSD (Binance USD). Each JADE has a backing of at least one BUSD. If the price of JADE falls below one BUSD, the protocol repurchases it and burns it, bringing the price back to 1 BUSD. A crypto token burns when it is delivered to an unusable wallet address to remove it from circulation. No one can access or assign such burn addresses. When a token is transferred to a burn address, it is permanently lost after burning the token, the supply of the token decreases, and the price increases. Jade Protocol uses the token burning process to keep the price of JADE at least equivalent to one BUSD. Jade Protocol's 10% treasury is for such buyback and token burn.
Furthermore, the protocol places no upper restriction on the possible price of JADE. JADE isn't tied to BUSD, but it is backed by it. Hence, the JADE token can maintain a constant floating value while never falling below the value of its underlying asset. The token price equals one BUSD plus premium, with "premium" representing market value. Besides this, bonds are another way for JADE to build its treasury. The protocol offers bonds in exchange for various assets, and the buyer receives JADE at a considerably reduced price. Bonds boost the treasury and allow Jade Protocol to provide returns to the users.
Additionally, the platform has achieved some targets like getting listed on major exchange platforms, creating handles on various social media platforms, launching jadeprotocol.io, etc. Jade Protocol is also seeking to deploy a multi-chain facility.
History of Jade Protocol (JADE)
Fair Launch Foundation (FLF) launched Jade Protocol. FLF is a group of intellectuals with the aim to improve and democratize well-known DeFi protocols. The foundation takes financial services that traditionally provide venture capitalists, insiders, and paid influencers early access or special treatment and redistributes them to the broader public. The foundation also examines the smart contracts and financial models these services use to maximize the public's return. The group opted to remain anonymous to ensure the safety of the team and the impartiality of the project.
HowAreNew JADETokensCreated?
Jade Protocol enables staking for users where stakers get rewards by vesting their JADE tokens on the platform. The rewards are dependent on the number of JADE staked in the protocol, and the monetary policy sets the reward rate. Staking is a long-term process. If the market price of JADE goes below the initial purchase price, the increase in staked JADE balance should eventually outpace the price reduction.
