Jet Protocol Code Review

Jet Protocol Code Review

TM Ratings – 80%

Review Date: November 25th, 2021

Jet Protocol is an open source, non-custodial, decentralized protocol for borrowing and lending on the Solana Blockchain, built for speed, power, and scalability. The protocol allows users to deposit various supported tokens, currently USDC, Sol, Bitcoin and Ethereum. They then receive interest back to incentivize participation. Those deposits will sit in a pool that is also used for users looking to take out a loan in supported tokens. Because of this, individual users are not matched, and the protocol can create rules to govern ratios, supported tokens, and a variety of other needs.

A Jet user can borrow against over-collateralized debt positions, and may incur debt up to governance mandated debt ratios. If the value of a user’s deposited collateral falls under the specified ratio, their position may be liquidated by external actors, such as traders, or any users who can call the smart contract. In addition to lending, Jet introduces interest rate products, secondary markets on Serum, and facilitates ongoing, community-driven lending product research & development.

Borrowing and lending protocols are necessary to any DeFi ecosystem. On all leading smart contract platforms, Ethereum being the first that comes to mind, they have been largely successful to date. As the Solana DeFi ecosystem is slowly growing, the need for such a protocol is emerging, to allow for a broader range of applications and use cases. The team’s decision to build on Solana was largely based on Solana’s speed and lower fees, offering better scalability and also access to more people.

Jet innovates on battle tested governance models from existing protocols, skewing towards community ownership and engagement. The most important aspect of this governance-first approach being to build an inclusive community to research, design, and implement useful lending products.

The team recently launched the protocol on mainnet and announced the raise of $6.8M to support the development and expansion of the protocol, which could become one of the central pieces of Solana’s DeFi ecosystem. The token is trading and available on decentralized exchanges (Ascendex, Raydium).

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