How is JNTR protected against manipulation and volatility?

How is JNTR protected against manipulation and volatility?

Since the face value of JNTR relies on pool A which holds BNT in the Main Reserve, there must be protections against market manipulation or volatility. If protections were not in place, JNTR would be altered in an unreasonable manner every time BNT changes value or each time someone sends funds directly to pool A to the blockchain address. Therefore, Jointer implemented an automated process to ensure neither potential reality could harm JNTR’s integrity.  


BNT increases in value

  • Every time BNT increases value, the smart contract triggers relative pool liquidation (using the Relay ownership tokens) from both pool A and pool B to keep the ratio the same.

  • The  pool liquidation amount is equal to the volatility percentage change.

  • After liquidation, the smart contract redeposits JNTR back to pool B and sends the BNT to the Turnover Reserve. 

  • This process balances the JNTR face value to the original position before the BNT value increased.

BNT decreases in value

  • Everytime BNT decreases value, the smart contract triggers relative pool liquidation (using the Relay ownership tokens) from both pool A and pool B to keep the ratio the same.

  • Each pool's liquidation amount is equal to the volatility percentage change.

  • After liquidation, the smart contract redeposits BNT into pool A and sends JNTR to the Overflow Reserve.

  • This process balances the JNTR face value to the original position before the BNT decreases.


Direct deposit to pool A

  • Every time there is a direct deposit to pool A, the smart contract triggers relative pool liquidation from both pool A and pool B to keep the ratio the same.

  • After liquidation, the smart contract redeposits JNTR back to pool B and sends the BNT to the Turnover Reserve. 

  • This process balances the JNTR face value to the original position before the direct deposit to pool A.


Direct deposit to pool B

  • Pool B is protected by a smart contract that prevents any JNTR deposits outside the Jointer system.

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