Binance Smart Chain is a blockchain competing with Ethereum in attracting innovative projects. Jointer organized its private auction through this technology, and noted great success. The face value of JNTR also noted a 42x increase in the process while also launching a Binance Smart Chain to Ethereum cross-pool swap.
What is Jointer Exactly?
For those unfamiliar with Jointer, it is a project that aims to provide a DeFi solution backed by commercial real estate. Ushering in the future of commercial real estate syndication through a DAO-based approach is something the DeFi industry has not witnessed. The company leverages the Binance Smart Chain to achieve its goal.
While the Binance Smart Chain has given rise to multiple DeFi projects in recent months, none have been as deeply engineered which is evident through the free cross-chain shared pool swap.
Jointer’s DeFi model is quite different, they built 56 smart contracts on top of the basic Uniswap reserve model. In addition, Jointer organizes daily DeFi auctions to offer incentives and leverage decentralized financial engineering.
Nifty Auction Mechanics
Bridging the gap between commercial real estate and DeFi requires a unique approach. Jointer makes use of game-theoretic models to determine the Auction’s JNTR distribution to investors. Individual investors will be “awarded” based on individual contributions as well as the group investment goal.
Every Auction day, there is zero investment to start. It is possible one lucky investor contributing the minimum amount will win the entire Auction. It all comes down to getting in at the right time, while hoping additional investments will not increase by too much. A completely different approach to distributing tokens, and a method that keeps garnering ample attention.
An extra incentive is provided in the form of “goals”. If a daily goal is outperformed, all participating investors will become eligible for rewards. This applies to both big and small investors, as they can make or break the success rate of these daily Auctions. This “Group Bonus” will benefit every investor, as the JNTR discount becomes greater.
No investment comes without risk, yet Jointer has come up with a way to attempt and mitigate potential losses. All Auction investments have 90% downside protection. Lowering the capital risk while still providing full benefits from any upside is a well-balanced risk-reward structure.
Through the downside protection, 90% of the investment and tokens are locked in a smart contract for 12 months. After this period ends, 90% of the initial investment is released to Jointer, and the tokens are sent to the investor. It is possible for investors to waive this protection during this time.
For those with a long-term vision, it is possible to stake these “locked” JNTR in exchange for 2% of the total daily auction mint. If an investor isn’t happy with the process, they can simply cancel their commitment and receive 90% of their investment back. There are different options for everybody, depending on their personal preferences and sentiment.
The JNTR Token
JNTR acts as a liquidity bridge to transfer value between commercial real estate equity and blockchain-based currencies. Starting at a face value of $0.01, its price will shift based on the Liquidity Reserve’s calculation. Every time investors participate in daily auctions, or use JNTR to buy Jointer’s Stocks or notes, the face value will be adjusted accordingly. Jointer also operates cross-chain through SmartSwap to JNTR/b which trades on PancakeSwap and JNTR/e, an Ethereum based token that trades on Uniswap.
Daily auctions for JNTR have kicked off recently. Following the first successful auction, the face value of the token already increased by 4,262%. As of October 13, 2020, the private auction is still ongoing on a daily basis. Behind the scenes, the Binance Smart Chain smart contract runs the show, including the calculation of daily minting and incentives.
Commenting on the unprecedented growth of JNTR’s face value, Jointer CEO Yoda Regev adds:
“Taking advice from Master Yoda, ‘Do or do not, there is no try.’ After four pivots and a very long two years of hard work we built a sophisticated and first of its kind DeFi model, without even knowing that there would be a DeFi industry in existence. Now here we are, 27 Auction days in and able to show that we designed a solution that first protects the community and then after the community benefits, then Jointer does. This is the only way to build (buidl), you cannot put the community at risk.”
Jointer is setting a high precedent for DeFi projects to follow. For each pool they open, they burn the LP or relay token, removing their ability to exit from the pools or manipulate the value in anyway.
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