Jones DAO - jUSDC
All about jUSDC, its integration with Dolomite, and what makes it special for jUSDC holders.
Overview
jUSDC is an auto-compounding vault that was built by Jones DAO to earn "transparent USDC yield without the inefficiencies of competing methods"
On Arbitrum, users can mint jUSDC by depositing USDC at any time. There are no fees incurred for depositing. There is currently a 0.97% fee for withdrawing, which is called a Retention Fee on their site. The retention fee is paid to the vault and shared amongst depositors who retain their deposit in jUSDC.
jUSDC token address (Arbitrum): 0xe66998533a1992ecE9eA99cDf47686F4fc8458E0
The prior information was taken from Jones DAO's Gitbook. If you notice any of the information is out of date or incorrect, please let us know.
How Can you Get jUSDC?
jUSDC can be acquired by minting it on Jones DAO's USDC Vault page on their web application. To mint jUSDC, you must first have USDC in your wallet.
Depositing jUSDC into Dolomite
Once you have jUSDC in your wallet, you may deposit it into Dolomite via the Balances page. To deposit it, select jUSDC from the asset dropdown with the Deposit tab selected (shown below).
Note, if it is your first time depositing, you will have to unlock jUSDC first, then perform the deposit. Once your jUSDC is deposited, you will be able to use it across Dolomite's various services.
Staking
On Dolomite, you can stake your jUSDC while continuing to use it as collateral for borrowing.
To stake your jUSDC, simply go to the Balances page and locate the jUSDC row, which displays the asset's APR and your jUSDC balance. If you hover your mouse over the APR, it will show a breakdown of the source of that yield.
Once you've located the jUSDC row, you'll find a button labeled "Staking". Click that to open up the jUSDC staking panel.
When you click the staking button, you will be shown the jUSDC staking panel. This displays your total balance of jUSDC on Dolomite, with a breakdown to show how much is currently staked, and how much is not yet staked.
To stake jUSDC, enter the amount of jUSDC you would like to stake in the input field at the bottom of the panel, above the green Stake button. Alternatively, you can click the max button on the right side above that input field to automatically enter the maximum staking amount based on your available unstaked jUSDC balance.
Staking jUSDC incurs a 1% fee, paid to Jones DAO. That 1% fee is taken from the jUSDC you stake. So for example, if you enter 100 jUSDC as the amount you would like to stake, you will pay 1 jUSDC to Jones DAO and the rest will be staked.
After entering an amount, click the green Stake button to submit the transaction, which you will then need to sign in your wallet. Once the transaction has succeeded, you will see your new staked balance reflected on the staking panel.
To unstake, select the Unstake tab on the right side of the middle of the staking panel, which will display your staked jUSDC balance and an input field. Enter the amount you would like to unstake or click the max button to automatically fill the field with your total staked jUSDC balance. Once you have entered an amount, click the green Unstake button at the bottom of the panel to submit the transaction, which you will need to sign in your wallet. There is no fee for unstaking.
When managing a borrow position on the Borrow page, the amount of jUSDC that is available for use as collateral is equivalent to the "Total jUSDC Balance" displayed in the staking panel. Whether staked or not, you can use your jUSDC as collateral. Staked jUSDC used as collateral will still earn rewards!
Claiming Rewards
Staking jUSDC earns you rewards, which can also be claimed right on Dolomite.
As in the Staking section above, first go to the Balances page and locate the jUSDC row, where the asset's APR and your balance of jUSDC are displayed. You should find a blue button right below the jUSDC row titled "Claim Rewards". Click that to open the jUSDC ARB Rewards panel.
On this panel you will see the current jUSDC APR, which represents the amount being earned from both Jones DAO's GLP strategy as well as ARB rewards. You can also see the total jUSDC TVL being staked by all jUSDC users, as well as the amount of jUSDC you currently have staked, and the rewards you've earned.
To claim available rewards, click the green Claim Rewards button and sign the transaction from your wallet. Please consult Jones DAO documentation to learn more about the scheduled release of ARB rewards to stakers.
Risk
jUSDC is not a borrowable asset. jUSDC can only be deposited by an EOA. jUSDC can only borrow USDC debt. No other collateral asset can be used in a position to collateralize debt with jUSDC.
Dolomite is able to bypass the 24hr redemption cooldown in the event a liquidation occurs. Liquidations are unlikely to occur though, given users can only borrow correlated debt against jUSDC.
You can learn more about the other risk parameters by visiting the Risk Mitigation page.
If you have a smart wallet and would like to deposit jUSDC, reach out to the Dolomite team on Discord and we can work on enabling it for you.
Price Oracle
The smart contract used for jUSDC's price oracle can be seen on this page. The implementation gets the value of USDC, the exchange rate between jUSDC and USDC from the jUSDC contract, and subtracts the retention fee (0.97% at the time of writing) from the value.
The current oracle implementation is flash loan resistant as long as jUSDC remains unborrowable. Meaning, the jUSDC asset must be unborrowable for this price oracle implementation to be considered safe.
As a precaution, the price oracle checks that jUSDC is not borrowable before returning a price. If for any reason in the future jUSDC is made borrowable, this failsafe will activate and the oracle will purposefully fail to function.
Fees
There are no additional fees for using your jUSDC tokens on Dolomite. You keep 100% of the yield it generates. The only fee charged is the 0.97% retention fee by Jones DAO (this is not charged by Dolomite).
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