Jointer, the world’s first commercial real estate DeFi project has witnessed a hike of 3,000% after two days. It focuses on safeguarding investors from the volatile liquidity pools. Investors are making use of Liquidity pools for trading in the decentralized exchanges (DEXes).
Although they facilitate the efficient trading of Stocks, there are also some risks associated with them which got highlighted with Sushi Swap and UniSwap. Sushi Swap was managed to use a ‘Vampire Attack” on UniSwap and it led to a loss of over $1 Billion of liquidity reserves of UniSwap.
Sushi emerged as the favorite tokens in DeFi with its increase from $600,000 market cap to a value of $285 million in a matter of two weeks. Later, SushiSwap creator Chef Nomi netted 38,000 $ETH by liquidating his 10% developer fund. And it faced over 70% loss of its value with people declaring SusiSwap as an exit scam by Chef Nomi.
This led to a loss of investor’s trust and Sushi was only managed to recover 20%. The whole event reflected the volatility of liquidity pools and it led people to head towards the promising Decentralized Finance project, Jointer. Jointer safeguards investors by pre-minting 10,700,000,000 JNTR that will be distributed between Jointer’s early investors, providers, advisors, and its team.
Jointer’s pre-minted JNTR is not allowed to engage directly with secondary markets. It uses algorithms to place sell orders through a gateway smart contract. And it corresponds to the market demand and the face value of JNTR in the liquidity reserve.
Jointer’s current minting is based on a daily auction supply. The next day’s starting mint is decided by the previous day’s fundraising amount and the end of the day JNTR face value. Other than this, JNTR takes into consideration group discounts and individual bonuses for minting purposes.
It also rewards investors for investing more than the set limit for the daily auction. Jointer financially engineers reserves in order to provide a perfect price slippage recovery for investors. This way, it results removes the risks of UniSwap and Sushi Swap.