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Jade City: RWA protocol development

Decentralized platform that democratizes access to the jade gemstone market by allowing users to invest in jade-backed bonds using stablecoins.
Project category

Web3 & Blockchain

Industry

RWA, Web3

Location

Global

Duration

Jul 2024 - Oct 2024

Jade City is an RWA protocol, co-founded by the owners of the largest jade reserve in the world. Jade City provides broad access to the lucrative $50 billion jade gemstone market by allowing investors to participate in the early stages of jade processing and distribution.

Through onchain platform, users can participate by providing funds, in the form of a stablecoin, to fuel the movement of jade through the value chain. Participants earn high yields in JADE tokens, while remaining profits are distributed to $JCT holders via a buy and burn mechanism.

How it works

Investors can participate in the jade gemstone market by purchasing bonds backed by physical jade using stablecoins like USDT. These funds are used to acquire raw jade at competitive prices. As the jade moves through processing and sales, its value increases by 100-500%.

Profits generated from these sales are used to repay bondholders with tokenized jade as interest, in addition to their initial investment. The Jade City platform operates through decentralized finance mechanisms, ensuring transparency and security via smart contracts. A portion of the profits is also used to buy and burn $JCT tokens, increasing the overall value for token holders and promoting sustainable growth.

Objectives

  1. Democratize Access to the Jade Market: Enable broad participation in the multi-billion-dollar jade gemstone market by allowing users to invest in a traditionally exclusive industry via decentralized finance mechanisms.
  2. Establish a Transparent Yield Protocol: Create a yield protocol powered by Jade that allows users to earn rewards over time by investing in jade-backed bonds, ensuring transparency and security through on-chain tracking.
  3. Leverage Blockchain for Real-World Asset (RWA) Tokenization: Use the Jade City platform to represent real-world jade assets on the blockchain, thereby enhancing liquidity and accessibility through decentralized finance.
  4. Enhance User Engagement with DeFi Incentives: Reward users with JADE tokens and high yields through a user-friendly, on-chain experience that incorporates incremental interest distribution and a secure collateral mechanism.

Approach used

  1. Integration with Rain Protocol: Leveraged the Rain Protocol to handle the creation, execution, and management of smart contracts for jade-backed bonds. This ensures secure interactions with the blockchain, allowing bond issuance, redemption, and yield distribution to be executed seamlessly.
  2. Stablecoin and Collateral Mechanism: Implemented a system where users can deposit stablecoins (e.g., USDC) in exchange for collateral tokens. These tokens are required for withdrawing stablecoins, ensuring a secure and reliable fund management process.
  3. Proportional Reward Distribution: Designed an interest calculation mechanism where JADE rewards accumulate incrementally over a bond's maturity period. Users can claim rewards in proportion to the bond's maturity, encouraging long-term investment and continuous engagement.
  4. Orderbook and Real-Time Tracking: Developed an efficient orderbook to manage transactions, enabling transparent and timely bond issuance and redemption. Cloudflare Workers provide low-latency, real-time access to bond data and JADE rewards, ensuring global accessibility and fast user interactions.
  5. User-Friendly Frontend Interface: Built the frontend using React, Next.js, and Tailwind CSS to create an intuitive, responsive interface. This allows users to easily deposit stablecoins, view their collateral holdings, monitor bond progress, and claim incremental rewards. Wallet connectivity is managed via Wagmi and Viem, which display essential user details such as ENS and balance information.
  6. Data Management: Utilized GraphQL for efficient data querying, allowing the frontend to dynamically pull user-specific data, bond details, and collateral information. This improves performance and scalability, ensuring a smooth user experience as the platform grows.

 

Dashboard
Buy Bond
Buy Bond
My profile
Claim $JADE
Claim $JADE
Treasury Data
$Jade Data

Technologies used​

  1. Rain Protocol: Used to create and execute smart contracts, enabling secure bond management and seamless distribution of JADE rewards.
  2. RainDex App: Facilitates the deployment and management of jade-backed bond contracts and supports order execution for jade investments.
  3. HardHat: Assists in deploying smart contracts for jade assets, ensuring streamlined setup and integration across the platform.
  4. Cloudflare Workers: Manages user interactions with bond-related operations at the edge, providing low-latency access and real-time tracking for JADE rewards and transactions.
  5. React, Next.js: Provides the frontend framework, allowing users to deposit stablecoins, view jade-backed collateral holdings, track bond maturity, and claim incremental JADE rewards.
  6. Wagmi + Viem: Powers wallet connectivity, displaying ENS and balance information, enabling interaction with jade asset contracts, message signing, and more.
  7. Tailwind CSS: Optimized for rapid component styling, ensuring an efficient and maintainable interface for a seamless user experience in the Jade City ecosystem.
  8. GraphQL: Enables efficient querying of jade asset data, bond details, and user-specific interactions, improving the performance and scalability of the platform.

Additional Features:

  1. Collateral Mechanism: A secure process for depositing and withdrawing collateral-backed stablecoins. Collateral tokens are required to withdraw the deposited stablecoins, ensuring a secure and reliable method for managing funds within the platform.
  2. Proportional Claiming: JADE rewards are distributed progressively throughout the bond's maturity period. Users can claim rewards at specific intervals, providing a flexible and engaging investment experience that encourages long-term participation.
  3. Global Low-latency Access: Fast, real-time access through Cloudflare’s global edge network, allowing for quick transaction processing and instant access to bond and reward data, ensuring a seamless experience for users worldwide.
  4. Auditable Receipts: Each deposit generates a unique receipt, providing transparent and secure tracking of deposits and claims. This process reinforces user trust and accountability by ensuring all transactions are fully traceable.

Tech stack

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