An update from the developers of Jet Protocol:
The Jet Protocol development roadmap’s highest priority product is “Jet Fixed Term”, the premier product of the Jet Markets product suite. The fixed term application allows lenders and borrowers to offer, or request, loans in USDC or SOL at any chosen interest rate. Initial markets will be in USDC and SOL and with tenors of 1 day and 30 days.
This is a groundbreaking, fixed term DeFi application where active lending and borrowing positions are fixed term, and fungible across lending periods.
Jet Protocol’s innovative, fixed term application allows borrowers and lenders to negotiate rates in a limit order book, and permits fungibility between terms of the same tenor. While other applications do exist that allow users to lend and borrow at a set rate or for a set period of time, those applications tend to be inflexible and with a singular purpose.
The engineering team has deployed the fixed term program to Devnet. A frontend is being developed in parallel. After a period of initial internal testing, the URL for the devnet app will be shared publicly, perhaps in late March.
Program audits are also underway on the fixed term program, thanks to Ottersec. For information on past audits done for Jet please click here.
Closer to launch information will be gathered from users on their potential fixed term usage to identify the most useful fixed term assets and tenors to launch with. Identifying liquidity requirements for borrowers and potential commitments from lenders are also a top priority ahead of launch.
The first public Mainnet deploy of the fixed term application is targeted tentatively for April 2023 and will have the following functionality:
- Request loan (post a borrowing resting order to the book and allow borrowers to fill if they desire)
- Offer loan (post a lending resting order to the book and allow lenders to fill)
- Lend now (market order to lend at the best rate currently available in the chosen tenor)
- Borrow now (market order to borrow at the best rate available in the chosen tenor)
- Autorolling positions for both sides of the market, if the user wishes
- Repayment and position management
- Liquidator support for fixed term positions
- New user interface to help communicate data relevant to Jet’s fixed term lending and borrowing
Due to the nature of Jet Fixed Term having fungible tenors, it is expected that users will be eager to speculate and arbitrage on interest rates within the protocol. This could be done by lending a short term tenor and borrowing on a longer tenor (longer tenors typically have lower rates) — thus allowing delta neutral rate arbitrage.
This also has the effect of creating an ongoing and observable yield curve for any asset that Jet allows as collateral for fixed term lends and borrows. This means that assets that do not currently earn high interest from DeFi lending platforms (e.g. SOL, ETH, BTC, etc) can be used as collateral for delta neutral rate arbitrage.
In addition to the the Jet Fixed Term product, Jet engineers have also been working on the following:
Next-generation leverage swaps: Automatic best execution across multiple venues and routes (starting with Saber and Orca Whirlpool), which will in effect make the app a swap aggregator competitor similar to Jupiter. Just like the current leverage swaps, this will be integrated with Jet’s margin accounts and lending products, offering up to 20x leverage for the least risky assets (e.g. stablecoins like USDC). This should also be tentatively released in April, and announced on Twitter when it is live.
Full app redesign: Expect a UX/UI refresh as the next-generation frontend ties together the entire “Jet Markets” product experience. This is slated to be released after the rest of the products, tentatively in May.
Other mentionables in the backlog include a wormhole integration and positioning of Jet Markets as a cross-chain app (EVM compatibility), and upgrades to the protocol design resulting in improved capital efficiency and control for users through margin account and risk management upgrades.