What are the Relay Ownership token responsibilities?
The responsibilities of the Relay Ownership
Recovering the Turnover reserve and the Overflow reserve.
Stabilizing JNTR face value against market volatility and price manipulation.
Increase in currency market price - When the digital currency (Bancor’s BNT) market value in pool A increases, the value of the entire pool increases. So if the currency increases by 10% the value of pool A would increase from $100 to $110. Without the Relay Ownership token, the value of JNTR, which is determined by pool A, would increase. Because of the Relay Ownership token the crypto market price volatility never affects JNTR’s face value.
Jointer accomplishes this by automatically redeeming 10% from both pool A and pool B, then depositing back into pool B enough JNTR to return it’s face value to its starting value before the 10% currency market price increase.
Decrease in currency market price - When the digital currency (Bancor’s BNT) market value in pool A decreases, the value of the entire pool decreases. So if the currency decreases by 10%, the value of pool A would decrease from $100 to $90. Without the Relay Ownership token, the value of JNTR which is determined by pool A, would decrease. Because of the Relay Ownership token, the crypto market price volatility never affects JNTR’s face value.
Jointer accomplishes this through automatically redeeming 10% from BOTH pool A and pool B, then depositing back into pool A enough currency until the face value of JNTR reaches it’s starting face value before the 10% currency market price depreciation.
User manipulation - If Jointer’s system were to receive funds directly into pool A from an attacker looking to manipulate the JNTR face value, the system process compensates by redeeming an equal % of the manipulated JNTR from the relay in an equal amount from both pool A and pool B. Then the Liquidity Reserve process deposits enough JNTR into pool B until the face value of the JNTR returns to its initial face value before the attack.
Related Articles
Relay Ownership Token Overview
The Relay Ownership tokens represent ownership of the two pools in the Main Reserve. The holder of the relay has the ability to redeem up to 100% of the currency from the Main Reserve pools. The Liquidity Reserve protocol utilizes the Relay token to ...
What is Jointer's Liquid Economy?
Recognizing the importance of liquidity for investors led Jointer to develop Jointer's Liquid Economy. The goal of the Liquid Economy is to provide trust and liquidity options to all of Jointer’s investors. To accomplish the goal, Jointer’s Liquid ...
What is Jointer’s Liquidity Reserves’ Protocol?
Jointer’s Liquidity Reserves are powered by multiple smart contracts creating multiple reserves and tiers of decentralized rules on top of Bancor’s relay protocol. The Reserves are funded with 10% of all investment received to support everlasting ...
Overflow Reserve Triggers
When the Overflow Reserve runs out of JNTR, it will trigger the relay ownership token to liquidate the Main reserve and refill the Overflow reserve with JNTR.
What are the Turnover Reserve triggers?
The Turnover Reserve has two triggers that spring it into action. One, to refill the Side Reserve when it is empty and two, to initiate the Relay ownership token to liquidate the main reserve pool.