Reliable Yen Stablecoin
A Stable and Transparent System
Last updated
A Stable and Transparent System
Last updated
The process begins when a user decides to lock in USDT in exchange for JPYT. DePhaser utilizes a trusted external oracle to provide the real-time market value of the Japanese Yen at the time of the transaction.
This oracle pulls data directly from financial markets, ensuring that the exchange rate used for minting JPYT accurately reflects the current value of the Yen.
This system guarantees that the conversion rate between USDT and JPYT is transparent and based on current market conditions.
By offering users a fair and real-time conversion rate, the platform ensures that the amount of JPYT they receive mirrors the Yen’s value at that specific moment, offering precision and reliability in the minting process.
Unlike the previous fixed-rate mechanism, the new system operates with a dynamic Lock-In Exchange Rate. This rate is recognized in DePhaser’s system as the average exchange rate across all users' locked-in positions.
While users still mint JPYT based on the real-time market rate at the time of their lock-in, the rate used when they return JPYT to unlock USDT is recalculated at the time of withdrawal.
This dynamic model ensures flexibility and reflects the average exchange rate across the platform, accounting for shifts in the broader market.
Users are no longer bound to the initial rate at which they minted JPYT. Instead, their position will be recalculated when they decide to redeem their USDT, providing a more fluid and up-to-date mechanism.
With this new approach, users may not always receive back the exact amount of USDT they originally locked in. When returning JPYT to unlock USDT, the system recalculates the exchange rate using the average Lock-In Exchange Rate across all available locked-in positions.
This ensures that users interact with the most accurate and current data, providing a fair and transparent transaction.
Although users might not retrieve their initial USDT amount exactly, they are assured that the redemption process reflects real-time market conditions, offering an updated and balanced experience when reclaiming their assets.
The new dynamic rate mechanism also helps minimize market risk for long-term holders. By averaging the exchange rate across all locked-in positions, the system spreads the impact of market fluctuations, ensuring that no single position is overly exposed to volatility.
This creates a more balanced environment where users benefit from a system that reflects the collective market conditions over time.
This flexibility and dynamic nature of the Lock-In Exchange Rate make JPYT an attractive option for users looking for a stablecoin that adapts to market conditions while maintaining transparency and fairness.
Whether users are holding JPYT for short-term transactions or long-term savings, they can be confident in the system's ability to adjust to real-world changes in the Yen’s value.
