- Jungle Finance is using Socean Streams to purchase its own liquidity.
- On the 13th of April 2022, 2200(UTC+8) buyers can sell JFI-USDC Raydium LP tokens and buy a stream of JFI unlocking over 30 days (b30JFI).
- This allows long-term buyers to purchase $JFI at a discount, and allows Jungle Finance to own its own liquidity.
We’re incredibly pleased to announce that Jungle Finance will be using Socean Streams to purchase their own liquidity. This time round, Jungle Finance will be selling 10,000 bJFI!
Who is Jungle Finance and what is $JFI?
Jungle Finance aims to provide a platform to allow users to tokenize and sell the rights to their future yield (such as staking, farm rewards, etc) independently of the collateral asset.
Their focus is on providing liquid markets for both the base asset and the yield asset, in order to provide maximum value to users choosing to utilize the protocol. With an initial focus on the Solana ecosystem, they intend to expand into the ETH and LUNA ecosystems as well.
$JFI is the governance token for the Jungle Finance protocol, granting users the right to vote on supported assets, JFI farm reward allocation and treasury spend.
Why is Jungle Finance buying JFI-USDC LP tokens and using Socean Streams?
Socean Streams allows Jungle Finance to control its token supply inflation and filter out mercenary traders.
By distributing streams, Jungle Finance slows down JFI token inflation, which is healthier for the JFI token.
The Socean Advantage: Short-Term vs Long-Term Traders
Socean Streams also filters out short-term traders. There are two types of buyers: long-term holders who believe in the protocol (HODLer Harry), and people who are only interested in short term price action (NGMI Nathan). If Jungle Finance sold JFI to buy LP tokens on the open market, both long-term holders and short-term traders would buy JFI.
Everything changes once we add the time component. Long-term holders have a lower discount rate (they are more patient) than short-term traders. They will be willing to pay a higher price for bJFI compared to short-term traders, and will thus outbid them.
The graph below shows the price that a more patient holder would pay vs. an impatient trader as the bonding duration increases. If the price is anywhere above NGMI Nathan and below HODLer Harry, NGMI Nathan will not purchase bCRP. Soceans Streams thus allows Jungle Finance to ensure that only high-conviction supporters purchase its token in this offering.
For more details, see the Socean Streams whitepaper.
Why should I buy bJFI?
Buying bJFI gives you a great way to support Jungle Finance. If you believe that JFI is currently undervalued and will appreciate in the future, you can buy bJFI and in return get a better price for doing so. By buying bJFI, you will also help Jungle Finance secure JFI-USDC liquidity.
How do I buy bJFI?
bJFI will be available for purchase on the 13th of April 2022, 2200 UTC+8. Go to https://socean.fi/app/streams to purchase b30JFI.