Derivation Project: The Rise of Important Future Tracks

Derivation projects, as an extremely important track, deserve our high attention. Looking at the general trends in the development of the cryptocurrency space, each round of bull and bear markets is accompanied by the rise and fall of certain track projects. I believe that derivation projects are very likely to experience explosive growth during this bull market. A certain futures perpetual contract trading platform that has already emerged is a typical representative of such derivation projects.

Derivation projects mainly include futures, options, synthetic assets, and other types.

1. Project Introduction: Synthetic Asset Protocol

Jungle is a global debt pool model derivation protocol based on a specific L2 network, providing an unlimited liquidity derivation trading market. The protocol allows anyone to easily create a variety of synthetic assets, including cryptocurrencies, stocks, precious metals, and foreign exchange, without any coding knowledge. Users can profit from the price fluctuations of synthetic assets while participating in DAO governance and sharing profits.

The project is currently in its early stages and is undergoing testing. Users participating in the testing can receive token rewards, which can be used to mint blind boxes. The NFTs obtained will receive project token airdrops as specified.

To participate in the Alpha test, you must first obtain testing qualifications. The steps to obtain qualifications include joining the community, applying for specific roles, etc. After completing the tasks, the project team will confirm the qualifications within 24 hours.

2. Interaction Process

Before starting the test, it is necessary to prepare the test network and test tokens:

1. Add the specified test network to the wallet
2. Claim test tokens and cross-chain to the specified testnet

The test steps are as follows:

1. Claim test tokens

On the Dashboard page, click "Claim" to receive test USDC as collateral. Each user can claim up to 10,000 test USDC.

2. Staking collateral

Click the "stake" button and enter an appropriate amount of USDC as collateral. The first operation requires contract approval. For every 1 USDC staked, you can borrow 1 JUSD.

JUSD is a decentralized crypto-collateralized stablecoin issued by the protocol, pegged to USDC. There are two ways to obtain JUSD:

• Borrow JUSD through collateral
• Directly purchase JUSD

3. Trading Synthetic Assets

Participate in synthetic asset trading on the "market" page. First, you need to transfer available JUSD into the specified debt pool.

The trading interface displays the following information:

• JUSD Balance: The amount of JUSD held in the debt pool
• Synth Value: The value of synthetic assets held in the debt pool (including JUSD)
• Debt Book Total Debt: The total amount of synthetic assets held by all users in the debt pool.
• My Active Debt: User's debt in the debt pool

Users can use JUSD to purchase synthetic assets on the market. The price of synthetic assets is determined by oracle, and trading does not affect the price, achieving infinite liquidity.

Note: If the required JUSD purchase exceeds the debt pool balance, the system will automatically transfer from the entity account.

When the price of synthetic assets in the debt pool fluctuates, total debt and individual debt will change accordingly, resulting in profits and losses. If the unrealized profit and loss percentage ≤ 95%, a forced liquidation will be triggered.

In the future, the project will create more debt pools covering assets such as cryptocurrencies, stocks, foreign exchange, and precious metals, allowing users to choose risk and return through a multi-debt pool system.

Users participating in the test can receive token airdrops daily, which can be used to claim NFT blind boxes and unlock more rewards. The project will also hold a simulated trading competition, with detailed rules to be announced.