Money Flow
Explain The Money Flow
Last updated
Explain The Money Flow
Last updated
At DePhaser, the security and efficiency of our platform are paramount. Our system is fully automated and operates through smart contracts to ensure seamless and secure distribution of funds.
DePhaser never directly holds user funds; instead, all USDT deposits are automatically transferred to AAVE smart contracts for storage, ensuring the highest levels of security and transparency.
The process begins when users lock in their USDT on our platform.
Before initiating the transaction, DePhaser requests the real-time exchange rate of USD to JPY from Chainlink oracle, ensuring that the displayed rate reflects the current market value.
This rate is transparently shown on the front-end interface, allowing users to review and confirm the rate before proceeding.
Once users confirm the transaction, the DePhaser smart contract collects the specified amount of USDT and mints an equivalent amount of JPYT, a stablecoin pegged 1:1 to the Japanese Yen.
The minting process is efficient, and users typically receive their newly minted JPYT within minutes. As the minting process occurs, the locked-in USDT is immediately transferred to AAVE’s secure smart contracts, ensuring that the funds are safely stored in a decentralized and transparent system.
When users decide to redeem their USDT, the DePhaser system follows a transparent and automated process. Upon redemption, the system burns the equivalent amount of JPYT that the user returns.
Unlike traditional systems, users will redeem USDT at the Lock-In Exchange Rate, which is determined by the average market rate across all active locked-in positions, rather than the exact rate at the time of the initial lock-in.
This recalculation ensures that users interact with a fair and updated exchange rate that reflects the broader market conditions, rather than being fixed at the initial transaction.
This mechanism not only ensures the stability of the system but also guarantees that all JPYT in circulation is transparently backed by USDT stored in AAVE’s smart contracts.
The burning process ensures that the supply of JPYT remains balanced with the underlying collateral, further enhancing the transparency and reliability of the platform.
One of the primary advantages of the DePhaser platform is the security it offers in locking in USDT.
By utilizing smart contracts, DePhaser ensures that all user funds are immediately and automatically transferred to AAVE’s decentralized storage system, eliminating any risk of fund mismanagement or loss. This ensures that users' USDT is stored in a highly secure, decentralized environment where only they can access it upon redemption.
Moreover, by removing intermediaries from the process, DePhaser minimizes the risk of human error and fraud, ensuring that transactions are executed in a fully automated and tamper-proof manner.
Users can engage with the platform confidently, knowing that their assets are safely stored and protected.
Every JPYT minted on the platform is fully collateralized by USDT held in AAVE’s smart contracts.
This direct link between the JPYT in circulation and the locked-in USDT ensures that each JPYT maintains its value at a 1:1 ratio with the Japanese Yen.
Unlike other systems where assets may be over-leveraged or under-collateralized, DePhaser maintains a transparent and verifiable system where the value of JPYT is always backed by real assets.
Users can verify the collateral backing of their stablecoins on-chain, providing a level of trust and transparency that sets DePhaser apart from many other platforms in the decentralized finance (DeFi) ecosystem.
Transparency is at the heart of DePhaser’s operations. From the initial lock-in of USDT to the minting of JPYT and the final redemption process, every step of the transaction is recorded on the blockchain, ensuring full visibility for users.
The use of real-time market data, provided by a trusted external oracle, ensures that exchange rates are fair and accurate.
By leveraging AAVE’s secure smart contracts, DePhaser ensures that all transactions are reliably executed without the need for manual intervention.
The automated nature of the system reduces the potential for delays or errors, making DePhaser a highly efficient and reliable platform for stablecoin transactions.
Users benefit from a fully decentralized and transparent process, where they can track their locked-in assets, verify exchange rates, and redeem their funds with confidence, knowing that every step of the transaction is securely recorded and auditable.
