How does the Main Reserve Financially Engineer the Calculation of JNTR’s Face Value?

How does the Main Reserve Financially Engineer the Calculation of JNTR’s Face Value?

JNTR’s face value changes with every currency deposited to pool A or when JNTR is purchased from pool B. Therefore, the ratio between pool A and pool B determines JNTR’s face value. 


Example of JNTR Redeemed 

Pool A has a $100 value of digital currency and pool B has 100 JNTR.

The value of JNTR is $1 based on pool A/pool B (100/100). 

If 2 JNTR are redeemed (meaning deposited into pool B in exchange for funds from pool A), the first JNTR will be redeemed at $1. 

Subsequently, the pools recalculate the ratio, which is now $99 in pool A and 101 JNTR in pool B. 

Therefore, JNTR’s new face value is $0.98 (99/101). 

The second JNTR will be redeemed at $0.98. 

After this redemption, the pool ratio changes to $98.01 in pool A and 102 JNTR in pool B. 

So after the 2 JNTR are redeemed, the new JNTR face value is $0.96.


Example of Digital Currency Deposit

When Jointer Liquidity Reserve Protocol sells JNTR, it uses the digital currency allocated to the Main Reserve to purchase JNTR from pool B and deposit funds to pool A. This automated action increases JNTR’s face value relative to the new ratio between pool A and pool B.


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