JLP Loan introduces an innovative new mechanism for native JLP based lending, and a great new use case for JLP as well.
In typical lending protocols, liquidations create systemic risk—forced selling floods markets with tokens at precisely the wrong moment, driving prices down sharply, worsening panic, and triggering cascading liquidations.
In contrast, JLP Loan lets you borrow USDC directly from the pool with the JLP
tokens you have. If liquidation is necessary, the JLP tokens are simply burnt, directly redeeming the underlying assets without market dumping. Since the pool always holds these assets, there's no need for external liquidity or forced selling.
We have been researching and developing this for a while now, so super excited to finally see this go live!
Borrow USDC against your JLP.
Introducing: JLP Loans.
Access liquidity while still earning yields. Here's how it works 🧵...
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