Yamato Protocol
Yamato Protocol is a crypto-asset overcollateralized stable coin issuance protocol. V1 allows the issuance of CJPY (“Convertible JPY”, a Japanese Yen equivalent coin) using ETH as collateral.
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Yamato Protocol is a crypto-asset overcollateralized stable coin issuance protocol. V1 allows the issuance of CJPY (“Convertible JPY”, a Japanese Yen equivalent coin) using ETH as collateral.
Last updated
Yamato Protocol is a decentralized and non-custodial CDP platform developed by DeFiGeek Community Japan
CJPY serves as an ETH overcollateralized stablecoin designed to maintain a peg to the Japanese Yen. In the future, the Yamato protocol will expand to encompass various tokens as collateral, and a diverse range of fiat stablecoins will be introduced, initially including USD and EUR pegs.
Dune Analytics Dashboard for Yamato Protocol Statistics
DefiLlama Page for Yamato Protocol TVL
The CJPY is soft-pegged by game theory to be equivalent to 1 JPY.
What is game theory (mainly Nash equilibrium)? The idea is that each side behaves either selfishly or rationally, leading to a targeted equilibrium point (in this case, 1 JPY peg). Incentives and other motivators are needed in the dynamics that always outweigh aggressive (destructive, irrational) behavior.
The minimum collateral ratio at the time of issuance is 130%, which means that 1CJPY can always be expected to be backed by collateral equal to or greater than 1 JPY.
1CJPY can always be redeemed against collateral equivalent to 1 JPY.
Demand to purchase CJPY to repay or redeem
Debt of 1 CJPY can be repaid for less than 1 JPY, which increases the demand for purchases in the market.
Since CJPY obtained for less than 1 CJPY can be exchanged for 1 JPY worth of collateral through redemption, demand for arbitrage-oriented purchases will increase.
Selling demand from CJPY issue in Yamato
1 CJPY borrowed can be sold in the market for 1 JPY or more and demand for arbitrage-oriented sells will increase.