In today’s edition, we’re bringing you a Revelo Intel review of an upcoming DeFi development: Arbitrum Janis DEX. Keep reading to learn about Janis and their Community Fairlaunch which begins today.
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What is Arbitrum Janis DEX?
Janis is a community-owned DEX on the Arbitrum network. It aims to become a liquidity hub for all types of capital on the Arbitrum Network. Janis’s code is forked from Uniswap V2, making it compatible with certain projects that are harder to implement on Uniswap V3. The code has been audited by PeckShield. You can read the full report here.
Janis DEX also features a stableswap function, forked from Saddle Finance. This enables deposits of USDC, USDT, and DAI, with low slippage swapping possible for users.
In addition to these DEX primitives, Janis includes a couple of intriguing features you might not be familiar with. These include:
Extinction Pools
These pools take a 100% deposit fee i.e. you have to permanently give up your tokens to receive the yield of these pools.
The extinction pool reward is given at a certain total rate for a certain duration.
There is a preminted supply of Janis $J tokens for extinction pools, but the reward can be any token.
Janis DEX or other projects could utilize these pools as a way to remove tokens from the circulating supply as desired.
NFT Pools
These pools work like normal LPs. Standard rewards multipliers are applied and yield is based on the amount of tokens deposited.
Deposit fees, if applicable, are paid in ETH.
NFT Yield Boosters
Certain partner project NFTs can be staked in Janis DEX LPs, with 5 max per wallet.
Boost rates are ~1-2% based on which NFT is being staked.
These boosters can be used on NFT pools.
Revenue Sharing
Arbitrum Janis DEX’s main attraction to many might be its interesting and unique revenue share dynamics, which we detail below.
Janis DEX has two tokens:
$JO (Janis Owner); the ownership token of the protocol.
$J; the primary DEX token.
We’ll start with $JO. $JO is the token used to convey ownership of Janis DEX. It is one of the main selling points of the protocol, as it will be used to distribute a significant proportion of revenue. Token holders who deposit into the ownership pool can expect:
50% of all trading fees
67% of outside revenue
67% of non-Extinction deposit fees
67% of non-native Extinction deposit fees
Based on this information, $JO holders will be receiving a good slice of the swap and deposit fees on the platform. In addition, $JO dividends include revenue from the platform’s “outside revenue”. What does this mean? Well, outside revenue includes a host of items.
It includes their launchpads, which will enable other projects to launch liquidity on the platform. The team's own internal projects they have planned will also see 67% of their launchpad revenue go to the $JO ownership pool. Even the majority of B2B services revenue is planned to flow back to $JO. To receive the various forms of revenue share, holders deposit their $JO into the Ownership Pool. This $JO can be withdrawn at any time.
Now that we’ve gone over $JO, next up is $J. $J is the token used to incentive liquidity providers. Farms on Janis DEX are slated to use a dual token incentive model, with both $J and $WETH rewards.
While $J won’t receive nearly as much revenue share, its fee is still significant. The token receives:
33% of all trading fees
10% of outside revenue
10% of non-Extinction deposit fees
10% of non-native Extinction deposit fees
How do you receive these fees? The answer might surprise you. The $J fee share pool burns the entire $J deposit. That’s right, to earn the revenue from the Tx Fee/ Revenue pool, you have to burn your $J. This has the potential to put significant deflationary pressure on the token if holders or farmers opt to burn it for revenue at a high rate. After burning your $J in the TX/ Revenue pool, you are given a $J deposit credit to represent the tokens that you burned. This credit grants you a proportional revenue share in $WETH permanently, i.e. your credit will not expire.
Essentially, the $J Tx Fee/ Revenue pool is an extinction pool with its own special parameters. It will be interesting to see how this burning dynamic impacts the circulating supply of the token.
Community Fairlaunch
Starting today and lasting until June 12, this fairlaunch preludes the protocol launch which is scheduled for June 13. The event will see 25% of $J made available for ⅓ of the launch price. Depending on when you’re reading this, the event may already be live! To incentivize participation, Janis has implemented a referral program, granting 3% bonus tokens to referrers and 2% to referees.
The primary function of the Fairlaunch is to distribute $J. In addition to initiating the $J circulating supply, 10% of the $JO supply will be dispensed as a bonus when buying $J. This will come at no extra charge to $J buyers.
Roadmap
Arbitrum Janis DEX has several planned initiatives. Most notably, there is a plan and emphasis for real yield to be dispensed to both farmers and $JO holders. At first, farmers will only receive the native $J rewards token. In addition to this, the team plans to start emitting $WETH as well. Note that the $J Tx Fee/ Revenue pool will reward in $WETH from the start, as this is the only reward token for the pool.
As an Arbitrum liquidity hub, more products are on the way for Janis. After the launch of the DEX, the team plans to implement launchpads directly into the protocol. To get the ball rolling, there are already several internal projects in development, including a Lybra Finance fork, a Gains fork, and more. These are all revenue streams that will ideally result in significant boosts to $J and $JO revenue share.
Of course, distributing dividends to $JO holders is also on the roadmap. With Janis DEX, there is a clear emphasis on returning value to the ownership token.
After Janis DEX gets its feet off the ground, the team has plans to deploy the protocol cross-chain as well as begin the development of a v2 version.
All in all, Arbitrum Janis DEX takes the aspects of popular projects like Uniswap and Curve and implements them into their own DEX. On top of this, the team introduces some very unique deflationary measures and emphasizes revenue share via dividends. Time will tell how Janis’s dual token system and deflationary dynamics play out. If any of this sounded interesting to you, learn more here and check out the ongoing Community Fairlaunch.
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Launchy is a builder-investor focused newsletter where they cover the latest web3 products, strategies and trends.
They also provide their personal takes as a builder/investor on current news, regulations, deals - all in just a 5 minute read.
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Community "fair launch" , 25% of the total supply ..