Jet is pleased to welcome more flight routes to the tarmac after a successful 2021. After several months of Jet Protocol V1 working well with the initial set of collateral types, it’s time to begin the process of ushering in new collateral types to be (potentially) added as via governance.

To support the development of Jet Protocol’s on-chain governance we are excited to announce the The Jet Association. The Jet Association is a non-profit entity in Switzerland. Expect a more in-depth post about the function and philosophy of The Jet Association soon!

An important first flight for the Jet DAO is the Collateral Onboarding Guide (“The Guide”). This Guide has been authored by an early Jet DAO contributor who goes by the name of Dante. The Guide sets out a framework for assessing the risk of potential collateral types (new tokens) to be added to the protocol in order to onboard new tokens effectively. The Jet DAO is a community, and that community will need time and a process to discuss new collateral types. The Guide is a first version of this process, and will include discussions in the Jet Forum, polling of the community, and JET token-based voting through the Jet Governance Portal.

This collateral onboarding framework ensures that only objectively and appropriate tokens are used for collateral within the Jet Protocol.

A template for the application to onboard new collateral is available for submitting a new collateral type for consideration.

We look forward to this maiden voyage of decentralized governance with the community, and welcome you to join us and follow along!

Disclaimer: The statements, proposals, and details contained above are informational only, and subject to change. We are in early stage development and may need to change dates, details, or the project as a whole based on the protocol, team, legal or regulatory needs, or due to developments of Solana.

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

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Introducing The Jet Association and The Collateral Onboarding Proposal Framework was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Jet wasn’t founded to operate as a basic domestic carrier, it was founded to push the envelope, run the engines hot, build more formidable aircraft and blaze new flight paths in DeFi. In this post we will cover how Jet’s upcoming governance and tokenomics developments will affect you, give you the tools you need to raise from the ranks of passenger to pilot and participate in the long-term vision of Jet Protocol well beyond our maiden voyage. Jet Core has refueled over the holidays for some big updates:

• Our first governance proposals,
• Signal voting,
• The Jet Airdrop, and
• The launch of Jet Staking

#JETdrop Incoming — What’s Next?

Upon the release of the JetGovern app, users will be able to claim their airdrop, examine and vote on proposals, and stake JET tokens. All airdropped JET tokens will be automatically staked within the staking/governance module by default as a nudge to users to keep their newly dropped JET in the staking system preparing for the upcoming signal vote for collateral onboarding additions to Jet Protocol. To support voting and reward distribution mechanics, all staked JET are subject to an unbonding period of 29.5 days.

Should a JET holder wish to move their tokens once claimed and staked, a user must initiate unbonding of their staked tokens in order to be able to remove them from the module. During the unbonding period, staked JET will remain held in the insurance fund (described below) and will not accrue additional airdropped tokens or be available for voting on proposals.

A Deeper Look Into Jet’s Staking and Voting Engine

We chose not to subsidize our lending and borrowing markets with yield farming rewards at the beginning — the goal at this stage of the protocol was to deliver our model of cross-margin borrowing and lending. For this reason, we only used blue chip crypto assets with liquidity on Serum, which is where we liquidate undercollateralized positions to. Boosting TVL by attracting yield farmers with JET tokens from the treasury would leave the DAO more flat footed in the future with a lack of deployable tokens to incentivize participation and usage of specific products and features to come.

Jet DAO’s current treasury still sits untouched, and can be deployed specifically to initiatives which strengthen the long-term health of the protocol. In this case, Jet’s governance goals require that we have a diverse and engaged set of users with JET tokens participating in the process and voting. The earliest and most active users of the protocol are the first (but not the only) people who should be weighing in on and voting on new collateral types and other voting proposals. Now that governance and voting is around the corner, we want as many engaged participants from the community as possible to be able to vote on how the protocol evolves. The airdrop with staking is a tool for us to do this.

The first important feature we want to highlight of the Jet Protocol post mainnet launch is a brand-new system for staking JET tokens. Staked JET will receive a portion of the allocated airdrop tokens over a fixed period. These tokens will be derived from the Jet Association treasury for a period of 180 days. Over this period, stakers can receive a share of the .75% of total JET token supply allocated to the ongoing airdrop. The proportion of this airdrop received per user with staked JET will vary depending on the overall participation rate in the staking program.

Additionally, Jet Protocol fees may be turned on at a later date and collected by the protocol to be locked in a tranche for governance driven usage. In addition to receiving the entirety of their share of the potential JET airdrop, those who stake their JET are eligible to vote on DAO governance. More info on Jet Governance structure and process will come in a later post.

The following table summarizes the staking airdrop program:

Staked JET as an Insurance Fund For Protocol Protection

We’re piloting our way through the skies of DeFi and unfortunately accidents can occur. While Jet Protocol undergoes regular code review, audits, and developer best practices, there’s always a non-zero likelihood that the system could either be subject to a code exploit or the fail-safes could cease to work during unexpected market conditions. Staked JET makes up the junior tranche of the Jet Insurance Fund, which backstops the protocol, protecting depositors against losses in the event of an incident. Subject to governance processes, the protocol treasury may also provide relief in these instances.

Socializing losses across the Jet Protocol user base is something we wish to avoid in the long term, so in the event of the following types of incidents we will deploy insurance funds in the event of protocol-wide loss. These funds could be mobilized via governance on issues such as:

• Code exploits which target total value locked or individual users funds
• Oracle or liquidation failures which cause bad debt to cause the system’s functionality to stop working

We envision that in the future, and subject to governance, only a portion of staked JET will enter the insurance fund, with the rest being actively managed by Jet DAO governance.

Protocol Revenue and the DAO Treasury

One of the cornerstones of Jet’s tokenomics is the distribution of protocol fees to ecosystem participants. To-date, Jet Protocol has not initiated any fee collection, which means all interest paid by borrowers has been delivered directly to depositors. But now that Jet Governance is being launched with the DAO formation underway, it’s crucial that token mechanics fall in line with the interest of the protocol as well as depositors.

With the introduction of our staking module, protocol fees will become a source of revenue for the DAO to directly bolster the staking returns and long-term benefit of those JET holders staked and participating in governance.

The initial parameters set forth by Jet Protocol are not static, and can be changed via governance as the protocol’s performance and health is evaluated on a rolling basis. The initial fees, once turned on, will be as follows:

• 20% of interest earned by depositors will be earmarked specifically for the Jet DAO treasury.
• No origination fees on borrowers.

Right now these fees will accumulate in the Jet Protocol treasury. In upcoming releases the protocol will disburse revenue directly to ecosystem stakeholders and participants. This budget will be controlled via governance, and the initial perpetual reward program will likely see protocol revenue distributed as follows:

• 10% used for Jet buybacks. These JET tokens will be returned to the DAO treasury and can be administered by DAO governance.
• 10% returned to the treasury in the same asset it was collected in.
• 40% distributed to JET stakers.
• 40% distributed to borrowers.

The Goals and Details Around The Initial JET Airdrop

When we announced the upcoming first $JET airdrop during our community call, we did so with the premise that we should broaden the distribution of JET tokens beyond Jet’s investors, IEO participants and those who have been able to buy JET to date. An airdrop to signal our values surrounding early participation in the testing of the devnet and mainnet iterations of the protocol was the best, first pass at this.

The snapshot of the airdrop has been taken retroactively, with the last considered slots as 945111098 on devnet, and 107081196 on mainnet. This covers the period up to 16 November 2021. This focuses the airdrop on the protocol’s earliest and most actively engaged users.

We used the following factors to determine the distribution of the airdrop to eligible users:

• The time-weighted average USD value of deposits into any pool on mainnet.
• The time-weighted average USD value of loans from any pool on mainnet.

The financial activity on mainnet was used to calculate a raw score for each mainnet user, by adding together the deposit and loan scores. We wanted to reward both depositors and borrowers equally, because the former showed a lot of trust in our protocol by placing their funds into our pools, and the latter are the real drivers of value on the platform as the payers of interest on loans.

For mainnet users who also participated in testing on devnet using the same wallet, we applied a bonus score of between 10% and 20% depending on the extent of devnet activity.

As one might expect, these scores follow a power-law distribution, with a small number of whales having significantly larger scores than the majority of users whose scores are clustered together. So as a final step to make the airdrop as fair as possible, we re-scaled the scores using the natural logarithm, to make the distribution closer to uniform.

The following table summarizes the airdrop distribution:

Assuming a JET price of 0.35 USD per token, the distribution of the the USD airdropped to each recipient looks like this:

We hope that users will agree we’ve succeeded in delivering a fair distribution of tokens not dominated by whales.

Another Leg Completed In A Long-Haul Flight

We know a lot of people in the community are excited about the opportunity to be a part of the JET airdrop as well as being able to stake their tokens to the governance module — we have so much more to share in upcoming weeks about the nuts and bolts of how we envision governance evolving over time. We intend to keep a full record of all details regarding public knowledge of the platform, tokenomics and governance on the Gitbook documentation page which can be found here: https://jetprotocol.gitbook.io/jet-protocol/

The upcoming dates and next-steps of action for the airdrop as well as posts detailing the governance process and important dates around that will be available on our Blog, Twitter, Substack and Discord. Please be sure to subscribe to these mediums of communication in order to get the latest news and updates on what’s next.

Update: There has been some confusion regarding the airdrop terms since this post has gone live. To clear this up — users who exclusively used Jet on devnet without using mainnet at all from the same wallet address as well will not be eligible for airdrop rewards. A high number of what we suspect to be spam bot accounts were created during devnet which were never to be seen again using mainnet after this. This created a difficult task to tease out genuine vs. spam devnet addresses, hence why we weighted people who used mainnet plus devnet usage rather than having devnet usage alone be a criteria. Thank you for your understanding.

—

Disclaimer: This airdrop is only available to non-U.S. persons. This airdrop has not been registered under the U.S. Securities Act of 1933 (“Securities Act”), as amended, and may not be offered or sold in the United States or to a U.S. person (as defined in Regulation S promulgated under the Securities Act) absent registration or an applicable exemption from the registration requirements.

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

💬Chat with us on Telegram or Discord 💬

🐦 Find us on Twitter — @JetProtocol 🐦

📰 Subscribe to our newsletter: https://jetprotocol.substack.com📰

Jet Staking and the #JETdrop— Two More Steps Towards Jet Governance was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Now Boarding

As 2021 winds down and we as a team take some time to rest from an incredible maiden flight, we want to reflect on what the year has brought us and what to look forward to. When the Jet’s journey began changing from a hackathon project in late 2020 to an open-source, secure, and polished protocol in 2021, we focused on rapidly scaling up our engineering team from the start.

Jet was formed to build better debt capital markets products. At a macro level, lending drives global economic growth. At a micro level, crypto-native institutions now rival or surpass many of their tradfi counterparts. The capital markets needs of crypto-native institutions has become significantly more nuanced, and the Jet product suite is built to offer these institutions high-flying market oriented products.

Wil, our CEO and co-founder, made the decision early on to develop Jet as open source software, and also to build all our code from scratch without forking existing reference implementations. The Jet codebase utilized the Anchor Framework from the very start. Building good technology takes sustained time and effort. And developer engagement has been strong, we’ve begun to see other devs use and reference the code patterns we created for our alpha product, and we continue to push the envelope on how we use the runtime to our advantage.

Since April, Jet has grown from 2 co-founders to 22 total employees, along with several key advisors in the realms of cybersecurity, global exchanges, DAO formation, and recruiting. The team raised over $11 million USD from some of the most well-known investors in the space. Our investors are thoughtful partners who promote decentralization, coherent growth, and help connect us with institutional contacts that are already interested in our upcoming products.

We Have Reached Cruising Altitude

Momentum is building as we gain altitude and reach the apex of our course. Since the protocol went live on mainnet in October, the value of all assets deposited on the platform, also known as Total Value Locked, or “TVL”, has grown without incentives from zero dollars at ground altitude to as high as $50,000,000. In addition, over $10,000,000 has been borrowed. In October, the JET token was announced and debuted through an Initial Exchange Offering, or IEO, in collaboration with our partner, Ascendex.

Something that the team is particularly proud of is our cabin service — we monitor and address bug reports, user interface and experience suggestions. We appreciate the feedback and needs of our evolving community. Many of our UI/UX updates have stemmed at least in part from user interactions in our #ux-ui-improvements channel in the Jet Discord. We have been elated by the praise and encouraged by the suggestions and criticism received, so please stop by sometime if you have anything to say!

Here’s a comparison between our original interface and the current one, to see how drastically our app has evolved:

We are also on the cusp of adding a “risk indicator” with more position detail to the C-Ratio display section in the upper right of the main app — this will allow users to see their position health with a quick glance.

And we have much more to come. Here are some details about what’s coming next to the user interface based on user feedback:

• Navigation bar that matches every navigation bar for all of our apps/website, and solves the window sizing and accessibility issues that have been reported.
• More detailed account health indication with Copilot (health bar, in depth detail about current standing and snippets of advice).
• More sufficient warning messages about when and how liquidation works.
• More slider granularity so users can use the slider to select any percentage from 0–100%.
• Colors and dark theming updated for accessibility.
• And much more!

Newest Cabin Crew Addition

Jet has steadily interviewed and welcomed top-quality candidates aboard our team. We are pleased to have hired Max Webster as our new Head of Marketing. Max has a long list of accomplishments building and running marketing at crypto companies, most notably his work as Uphold’s Director of SEO. His deep experience will help push Jet’s content creation and overall marketing strategy to the next level.

Adding New Destinations

Our growing development team has been working hard. Multiple new products are under development — we will begin teasing some of this very soon in a series of blog posts and announcements.

Aside from new products, we will release a series of improvements to our current app in the short term. We are further developing the “Copilot” feature of our app, which we want to build out as a tool to help beginners to DeFi understand what the app is and how it works. Copilot will also guide users on how to more effectively use the protocol by utilizing the yet-to-be-released features under development.

Additionally, we will release a series of improvements to the current borrowing and lending application. New assets will come soon, pending approval from governance. We have focused solely on SOL, WBTC, and USDC as “blue chip” collateral types up until now. Other Assets such as Staked SOL, USDT, and even a Euro stablecoin have been proposed as additions in the Jet Governance Forum or our Discord channel. We envision supporting several assets grouped by category and risk in the first half of 2022, pending governance approval.

We recently announced the JET airdrop, which is a key step to broader token distribution as we work towards increased involvement in community driven governance of the Jet DAO. As announced, our from-scratch governance module will be released around the same time, enabling voting and staking at the same time. The airdropped JET will be delivered and autostaked in the module. Further details about staking and voting will be communicated over the next few weeks going into January, including our first governance vote. We will also release more information regarding the structure and function of the Jet Protocol Association based in Switzerland that will play an exponentially-growing role as we bank towards decentralization and the DAO increasingly steps into the chief pilot’s seat in the cockpit.

Please remain calm and in your seat while aboard the aircraft. We are writing a series of detailed blog posts to be released over the next weeks. Stay in touch and we can’t wait to arrive at our next destination together. Happy New Year!

Jet’s 2021 in Review was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

The bug was identified by a user on Discord (jayne) who had been reviewing the program code, who privately messaged one of our core devs with details about the issue. After we acknowledged the problem, the mainnet program was redeployed with the problematic feature disabled. The feature in question was to provide a mechanism for closing accounts, so that users could recover their rent. This introduced a bug where after closing an account, other positions a user had could have been ignored by the program, potentially allowing a user to erase their loan balance without having to actually pay it.

The user who identified and disclosed the bug was instructed to submit their finding through our bug bounty program and was awarded $75,000 via Immunefi.

To prevent this from happening in the future, we’ve improved our mainnet deployment processes. We now deploy all code changes to our devnet instance first, and undergo a two week “baking” period before the changes can be deployed to mainnet. During this period, we will invite whitehats to review the code as part of our Immunefi bug bounty program.

We are engaging another auditing firm to do additional deep code review for upcoming releases into the new year and will share official audit report results with the community as soon as they are available.

This is truly the best part about developing OSS out in the open. We are unbelievably grateful for our attentive community supporting us as we work to constantly improve the core protocol to benefit users.

Thank you,

Wil Barnes, CEO and Co-founder of Jet

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

💬Chat with us on Telegram or Discord 💬

🐦 Find us on Twitter — @JetProtocol 🐦

📰 Subscribe to our newsletter: https://jetprotocol.substack.com📰

Jet Protocol Upgrade Bug Patch Disclosure was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

• Snapshot has been already taken
• Airdrop coming in soon
• Governance platform coming soon
• You must claim airdrop within 90 days of platform launch
• Tokens will be automatically staked
• There will be staking rewards
• You can also stake tokens that you have bought
• You will not be contacted by the team: beware of scammers

Jet Protocol launched in April 2021 as an idea for borrowing and lending that could be more capital efficient — we have been working to deliver innovative borrowing and lending products every day since then. Since takeoff, we always believed that good governance was going to be our primary differentiator in the Solana ecosystem and beyond, giving us an edge in how the protocol is formed and maintained.

We’ve had the benefit of seeing the evolution of DAOs in action over the past few years, with success stories like MakerDAO lighting a path towards meaningful decentralization. With lessons learned through observation and participation — this is Jet Protocol’s first step towards activating our community and building a governance framework that we hope will grow and evolve with the tech.

Since creating the JET token around the same time as our mainnet launch in October, Jet Protocol’s usage and utility have been evolving in parallel with JET’s position on the open market. We’ve seen TVL approach upwards of $60 million with absolutely zero liquidity mining incentives or other subsidies. We are extremely happy with this, and we believe that introducing the JET token into the overall governance and staking structure should align incentives even more for users of Jet, to get and stay engaged.

The $JET Retroactive Airdrop

In early Q1 of 2022, Jet will release a series of features tangential to the borrowing and lending app, which users have been able to interact with since the launch of mainnet. First and foremost, to ensure that our initial governance efforts have a wide enough range of people engaged, we will be doing a retroactive airdrop reward to early testers and users of the protocol since the earliest days of devnet. At a high level, this breaks down to people who engaged with the platform on devnet, and who deposited or borrowed funds on mainnet. Our progress and success are truly owed to these community members and supporters who were gracious to give us their time and feedback on the earliest versions of the product. We want to make sure they are able to participate in the first and most critical formal governance decisions.

The snapshot for the retroactive airdrop rewards has already been taken, and the interface to claim your JET tokes will be released over the coming weeks through official Jet Protocol channels. Please remember that we are not selling JET tokens, nor will Jet Core team members reach out to you on any social media platform to participate in this airdrop: if you receive unsolicited messages from anyone in our team, it is likely a scammer trying to rob you of your funds.

Within the Jet Governance interface, users will view and claim their available airdrop rewards. Any eligible rewards MUST BE CLAIMED WITHIN 90 DAYS of the airdrop start date. After this time, all JET tokens unclaimed will be returned to the Jet DAO treasury for future use. When you claim airdrop rewards within the Jet Governance interface, your funds will be automatically staked on your behalf into the Jet Governance staking module. With the understanding that Jet Protocol will hold its first token holder vote within Q1 of 2022 for the first collateral onboarding decision, we encourage all airdrop participants to keep their JET staked in the governance module, so they are able to vote on the first proposal when ready.

Your staked JET, which will be shown and delineated within the interface, can be unlocked at any time from the Jet Governance module and will be subject to a to-be-determined un-staking period before the funds are able to be moved. Please review the Jet Governance documentation for a full explanation of the unlocking schedule and how to understand yours.

Your staked JET, which will be displayed within the interface, can be unlocked at any time from the Jet Governance module but will always be subject to a un-staking period before the funds are able to be removed. For a full explanation of the un-locking schedule and how to understand yours, please review the coming Governance announcements and documentation..

Even though airdrop rewards are automatically staked and will begin earning rewards immediately after being claimed, anyone who wants to stake their JET into the Jet Governance module will earn staking rewards, which will accrue to each user’s staked balance over time.

Anyone who has JET tokens can stake them into the Jet Governance staking module to receive rewards and participate in governance opportunities.

$JET Utility Flight Path

Heading into the holidays, we wanted to make sure our community had a good idea of what to expect in early 2022. We have more content to come regarding how the governance framework and mechanics will operate, our DAO structure and even more on our exciting product roadmap. It’s of the utmost importance that we create a strong culture around governance and the input from the community which will be driving this. The coming instructions and details on how to participate will be available on our blog, newsletter, and Gitbook documentation. The Jet Core team is available to answer questions in our forum and Discord.

We appreciate your support so much and thank everyone for making 2021 a great one — we know you’ll be even more stoked for what’s in store this coming year.

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

💬Chat with us on Telegram or Discord 💬

🐦 Find us on Twitter — @JetProtocol 🐦

📰 Subscribe to our newsletter: https://jetprotocol.substack.com📰

Announcing The First $JET Airdrop was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Recently we’ve seen a lot of questions and interest in how Jet Protocol handles parameters in the system such as liquidations and fees. Especially during times of high market volatility, it’s important for users to know where their financial positions on Jet stand at any given moment, so we want to clarify a few important details to consider when lending and borrowing on Jet.

Thank you to our community members in the forum, discord and telegram group as well for asking these great questions and we hope they help! You can find these individual articles in our documentation as well here and here.

On Liquidations:

What is a C-ratio?

Jet’s C-ratio is the collateral-to-loan ratio. This C-ratio can be calculated using the following formula:

C-ratio = collateral value / borrowed value

A good way to think about the C-ratio is when you deposit $200 worth of Bitcoin as collateral, and then borrow $100 worth of USDC, the current C-ratio would be 200%.

What is the liquidation threshold?

Currently the liquidation threshold on Jet Protocol is 125%. A portion of your collateral will be liquidated to maintain a healthy C-ratio when it drops below 125%.

When you try to process a borrow or withdraw transaction that would bring your current c-ratio below 150%, the co-pilot system message will alert you that this is an unhealthy C-ratio.

How can I avoid liquidation?

When the market is volatile, you are at a lower risk of getting your account liquidated when your c-ratio is at 500% compared to when your C-ratio is at 200%. Your C-ratio can drop much faster than you expect in highly volatile environments, so it’s best to always check where your ratio is at and be prepared to either add more funds to top it off or repay and close your position.

On Fees

Solana Rent Fees

When you open your account on Jet, rent is charged by Solana which can be fully refunded in the future when you close all your account obligations on Jet. This is true for all protocols which allocate space per user on-chain.

Solana Transaction Fees

Currently there is no extra Jet originated fee added to your transactions. Only the minimal transaction fees on the Solana network are required to handle your transactions on Jet.. The Solana transaction fees are debited from your wallet when your transaction is processed.

Liquidation Fees

When your C-ratio drops below the 125% threshold, a portion of the collateral position is liquidated to return your C-ratio to at least 125%. A 3% liquidation fee is applied to the portion of your collateral that was liquidated.

If you have more than one collateral type in your deposit, the current version of liquidator picks a random collateral type to partially liquidate to bring your c-ratio to healthy status.

Interest Accrual

For collateral and loan accounts, interest accrues and gets continuously compounded to your respective accounts.

As always, if you ever have questions about Jet — we encourage you to drop into one of our communications channels and let us know! If we don’t have a source to direct you to we’ll gladly get you an answer and document it!

Good luck out there apes!

Disclaimer: The statements, proposals, and details contained above are informational only, and subject to change. We are in early stage development and may need to change dates, details, or the project as a whole based on the protocol, team, legal or regulatory needs, or due to developments of Solana.

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

💬 Chat with us on Telegram or Discord 💬

🐦 Find us on Twitter — @JetProtocol 🐦

📰 Subscribe to our newsletter: https://jetprotocol.substack.com 📰

Understanding Liquidations and Fees on Jet Protocol was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Adding Jet Fuel To Boost Our Product Roadmap

“Lending & borrowing are core primitives of DeFi infrastructure. Jet has one of the strongest and most experienced teams in crypto, and we’re incredibly excited to help them build out the Solana ecosystem.” — Georgios Konstantopoulos, Research Partner at Paradigm

Earlier this year we were lucky enough to have an amazing cast of VC’s and angels join our seed round, which helped us spend much needed time and resources hiring world-class talent to build the Jet Protocol that you see now on mainnet today. Since then, we’ve identified additional destinations we want to set course to. We’re not just doing cross-margin borrowing and lending better, but have brought on on additional strategic investors to help usher more of Jet’s protocol, governance and extensible product ideas into the real world.

Decentralized borrowing and lending is a core component of DeFi, and Jet Protocol has been built to take advantage of the speed and throughput offered by Solana. I’m glad to see teams of this caliber with a strong commitment to open-source development continuing to chose Solana. — Raj Gokal, COO at Solana Labs

As we move into this next exciting leg of our journey post mainnet and JET token launch, we’re thrilled to partner with our new investors who have committed $6.8 million in capital.

Our Latest Investors:

Paradigm is an investment firm focused on supporting the great crypto companies, protocols, and currencies of tomorrow. Their approach is flexible, long term, multi-stage, and global. Paradigm often gets involved at the earliest stages of formation and supports their portfolio with additional capital over time. They take a deeply hands-on approach to help projects reach their full potential, from the technical (mechanism design, smart contract security, engineering) to the operational (recruiting, communications).

Reciprocal Ventures backs visionary entrepreneurs who are building the foundational protocols and applications of the decentralized web. Reciprocal acts as an extension of the teams they partner with, working side by side with portfolio companies on every aspect of development, such as token economics, active network participation, and decentralized governance.

Solana Capital is the strategic investment arm of Solana Labs. Solana Capital’s mission is to provide capital and resources to the most promising teams building on Solana and the broader digital asset and blockchain ecosystem, typically at pre-seed and seed stages. For additional information, please visit https://solanacapital.com/.

GSR was founded in 2013 and is a global leader in digital asset trading, specializing in providing liquidity, risk management and structured products to global participants in the digital asset ecosystem. GSR's team of veteran finance and technology executives from Goldman Sachs, Two Sigma, Citadel, IBM and Oracle, among others, has developed one of the world's fastest and most robust trading platforms. They work with issuers, traders, investors, miners and exchanges around the world.

Three Arrows Capital Three Arrows Capital is a hedge fund manager established in 2012 by Su Zhu and Kyle Davies.

Ascendex (formerly BitMax) Investments is the research and investment arm of AscendEX, a global cryptocurrency financial platform. AscendEX Investments’ mission is to invest alongside innovative, early-stage blockchain projects to design, and build sustainable businesses within the digital asset ecosystem.

Republic Capital was established in January 2019.They select investments based on business fundamentals with a focus on unit economics and resilient revenue. Their portfolio companies are poised not just to withstand a downturn, but to emerge even stronger. In other words, companies that don’t need endless venture capital to survive.

SkyVision Capital (SVC) is a venture capital fund founded with the mission of promoting innovative decentralized technology and facilitating its adoption in mainstream communities. The SVC team is an early stage investor and strategic adviser of cryptocurrency projects that aim to revolutionize and fundamentally enhance markets across the DeFi, NFT and GameFi sectors.

TPS Capital is a proprietary trading firm, providing trading and advisory services for the defi, gamefi and digital art subsectors in the digital asset space.

Disclaimer: The statements, proposals, and details contained above are informational only, and subject to change. We are in early stage development and may need to change dates, details, or the project as a whole based on the protocol, team, legal or regulatory needs, or due to developments of Solana.

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

💬Chat with us on Telegram or Discord 💬

🐦 Find us on Twitter — @JetProtocol 🐦

📰 Subscribe to our newsletter: https://jetprotocol.substack.com📰

Jet Raises $6.8 Million from follow-on investors including Paradigm, Reciprocal, and Solana Capital was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

This has been the most significant week of announcements and technical milestones since Jet Protocol’s first test flight back in April 2021.This week has seen:

• The successful take-off of our mainnet on October 7
• The announcement of our JET token auction/listing partnership with Ascendex on October 8
• The closing of our follow-on round of funding
• Follow-on investors and IEO participants are buying at the same price

With so much happening, it’s easy to gloss over the details and importance of these events.

We’ve been listening to our community voice their interest in the tokenomics and reasoning behind our decision to structure the JET distribution as we did, and this blog post will go over just that here.

Token Lockup and Vesting Details

TL;DR — Most JET tokens are locked up for a long time (3 years), which leads to well-aligned incentives for everyone involved: the team, investors, community of users, and governance participants. Additionally, a large portion of the unlocked tokens are at the disposal of the DAO, and will require governance input on how they are allocated by stakeholders and community members.

• The fixed total supply of JET tokens is 1,700,000,000.
• Initial Circulating Supply: 156,257,200 JET.
• 25% of tokens to team & advisors, 0% unlocked at the 12 month cliff, and the rest vesting linearly over 24 months.
• 15% of tokens to seed investors, 0% unlocked following a 12 month cliff, with the rest vesting linearly over 24 months.
• 10% of tokens to follow-on investors, 0% unlocked following a 12 month cliff, with the rest vesting linearly over 24 months.
• 3.06% of tokens to Ascendex IEO + trading capital for market maker, 100% unlocked at TGE.
• 25.47% of tokens are under control of the DAO, 3% unlocked at TGE and the rest vesting linearly for 24 months. The rationale for lower % TGE unlock here is to prevent governance attack of DAO tokens.
• 21.47% of tokens are reserved for direct project contributors, the “dev fund”, 25% unlocked at TGE and the rest vesting linearly for 24 months.

Note on Project Contributors:

• These tokens are available to fund external contributors to Jet Protocol: governance facilitators, loan analysts, risk analysts, external development teams, education & training, and marketing efforts in the period while bootstrapping a stable and secure governance system.
• The dev fund is transferred to the DAO upon sufficient decentralization.
• These funds are subject to a lockup on a rolling basis of issuance.

When it comes to projects with a token economy, the vesting schedules utilized are critically important. This is due to market driven price action as well as the health and longevity of the protocol and making sure that crucial players have vested interests in the long-term success of the project.

We’re here to build a resilient, durable lending protocol, and we spent a significant amount of time finding the right investors to help us tackle the challenges ahead.

Our Fundraising Details

Jet closed an initial seed round of $4.8 million USD at a valuation of $32.5 million in June 2021 of this year. In this round we sold approximately 15% of the network tokens to investors. All of these tokens are locked with the same vesting schedule as previously described. These funds helped us rapidly hire a team of world class developers to build out Jet Protocol from the ground up with several innovative and differentiated features compared to other borrowing and lending protocols on Solana.

As we took flight towards mainnet release and our IEO with Ascendex, we realized there were strategic investors who were not included on the initial seed round but would add enormous value to our team from a technical and product roadmap perspective. With that, we decided to raise another $6.8 million at a valuation of $68 million.

A point worth noting here is that the latest investors in the Jet Protocol follow-on round bought at the same valuation as the Ascendex IEO!

0% of team, investor and advisor tokens are unlocked until June 2022, this will lead to an initial unlocked supply of roughly 450 million tokens in the first year. In this case, the term “unlocked” does not equate exactly to “circulating” as these funds are held and available by the DAO but are not available on the open market until distribution.

During the first year of venture operation (June 2021-June 2022) the only tokens unlocked will be from the ecosystem DAO fund and discretionary fund in order to actively and rapidly grow both the DAO’s decentralization efforts, while defending against governance attacks early on.

Any emission of tokens in the future will serve the primary purpose of growing the value of the protocol for all stakeholders.

We believe the strategic allocations of JET tokens set forth in our tokenomics model provides us not only with enough runway to build a team that can continue to innovate secure, never-before-seen DeFi primitives on Solana, but also bring forth these tools and instruments to the real world to create an impact on finance globally. A strong core team of Jet Protocol Pilots, matched with a well-equipped and thriving community of stakeholders in the Jet DAO, will power us through this long-haul flight to create something truly special and lasting in the world of new-age finance.

Please make sure your seats and table trays are in an upright position, fasten your seatbelts and enjoy the ride!

Disclaimer: The statements, proposals, and details contained above are informational only, and subject to change. We are in early stage development and may need to change dates, details, or the project as a whole based on the protocol, team, legal or regulatory needs, or due to developments of Solana.

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

💬 Chat with us on Telegram or Discord 💬

🐦 Find us on Twitter — @JetProtocol 🐦

📰 Subscribe to our newsletter: https://jetprotocol.substack.com 📰

JET Tokenomics, Lockup and Our Long-Term Vision was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

On Wednesday October, 6, 2021, Jet Protocol, founded by Wil Barnes (CEO) and James Moreau (COO), launched their Alpha product on mainnet, offering an improved cross-margining borrowing & lending experience to the Solana ecosystem.

Jet Protocol was inspired by the rising tides of DeFi Summer in 2020 and the proven models of borrowing and lending markets. These markets were shown to be integral base-layers to any other financial products on blockchains such as Ethereum and other EVM chains. When the founders assessed the market in early 2021, they saw several projects taking up the challenge, but felt most were missing the mark. Drawing from prior experience at Maker, MetaMask, and ConsenSys, they started implementing what they believe to be the modern lending DAO.

The founding team fastened their seatbelts and prepared for a long-haul flight of researching, hiring, experimenting, and developing. Making use of the tooling in front of them, Jet implemented their whole codebase from the tarmac up, leveraging Anchor to give flight to several innovative new code patterns. Jet re-engineers what’s possible in terms of capital efficiency, performance and scalability on Solana, rather than porting over 1:1 versions of EVM based models.

Jet Protocol seeks to differentiate itself through thoughtful and careful design decisions. Decisions include how liquidity is onboarded and incentivized to stay within the protocol because the team sees decentralized borrowing and lending on blockchains is on a path towards commodification. Jet’s focus is on a user-friendly UI, powerful liquidation market incentives, strong governance, and battle tested collateral onboarding processes.

Jet Protocol is built for users of DeFi who wish to borrow against their assets or earn interest on their crypto-assets. Jet is exploring retroactive rewards to early users of the protocol who add liquidity and borrowing to the protocol.

Founded in April 2021, Jet Protocol assembled a 16 person team consisting of a majority of back-end system engineers and front-end devs with in-depth knowledge of Rust, financial markets, blockchain UI and a passion for Solana’s capabilities as a development platform.

The Jet Protocol Alpha is operating on mainnet un-audited. Although the codebase has undergone a review from a team of external white-hat developers provided by the Solana Foundation, high levels of discretion when depositing and borrowing are recommended as the protocol is still in the beta stage, with full-scale audits planned for subsequent releases.

For more information about Jet Protocol, the team and their flight path email press@jetprotocol.io or visit the website https://jetprotocol.io

Disclaimer: The statements, proposals, and details contained above are informational only, and subject to change. We are in early stage development and may need to change dates, details, or the project as a whole based on the protocol, team, legal or regulatory needs, or due to developments of Solana.

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

💬 Chat with us on Telegram or Discord 💬

🐦 Find us on Twitter — @JetProtocol 🐦

📰 Subscribe to our newsletter: https://jetprotocol.substack.com 📰

Jet Protocol Is Now Live On Mainnet! was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

It’s wild to think that it’s been since April that we took our first test-flight forming Jet Protocol and making a formalized effort to build out the borrowing and lending space within Solana. Since forming the project it seems like we’ve managed to cruise through milestone after milestone:

• We raised seed capital from an all-star group of investors
• Hired a team of 10+ people and growing
• Inspired by the Oyster Lending protocol, we completely re-engineered the concept using Anchor and focused on optimizing for Solana
• We began work on decentralized governance in our new forum

But is something missing? Indeed! The white paper.

As Jet Protocol continues to gain altitude, we remain committed to being a user-driven protocol with a focus on the product making sure it moves towards being supremely useful for everyone from your average DeFi Degen to an institutional trader. We want to share our white paper with the community to give a more holistic view from a high altitude of what we’re trying to accomplish as well as our core motivations starting down this path.

While we have details that are still in flux that could change regarding everything from the token, to the protocol, this document should give you a better understanding of where we’re coming from.

This is just the first version of more to come — look for updates on tokenomics, technical roadmap details and more in future iterations.

Happy skies to you all!

Wil, James and the rest of Team Jet

Click here to read the whitepaper PDF: https://drive.google.com/file/d/1CWwEspD8WVonrr7VzS39zN79ZoGaNRqh/view?usp=sharing

Read the whitepaper on our Gitbook: https://jetprotocol.gitbook.io/jet-protocol/whitepaper

Disclaimer: The statements, proposals, and details contained above are informational only, and subject to change. We are in early stage development and may need to change dates, details, or the project as a whole based on the protocol, team, legal or regulatory needs, or due to developments of Solana.

Get In Touch

🌐 Visit us at JetProtocol.io 🌐

📩 Email us at hello[at]JetProtocol[dot]io 📩

💬 Chat with us on Telegram or Discord 💬

🐦 Find us on Twitter — @JetProtocol 🐦

📰 Subscribe to our newsletter: https://jetprotocol.substack.com 📰

In-Flight Reading — The Jet Protocol Whitepaper was originally published in Jet Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.