According to Klima DAO’s announcement, Jones DAO is willing to form a strategic alliance to achieve mutual benefits. Jones is already recognized for developing jUSDC and jGLP. Klima is optimistic that the collaboration will inspire the neighborhood to adopt the forthcoming trends that both partners establish.
Carbon Offset, for example, has had success with Jones DAO. Assuming things go through, the mechanism will land in the Arbitrum ecosystem to encourage peers to use Klima for a similar purpose.
The partnership is not something one can call out of the blue, as both parties have been in talks for some time now. Jones and Klima have been waiting for the right opportunity since emerging from the Olympus community.
Klima, in the post published in the forum, has assured everyone that the team is committed to onboarding high-quality teams working in the DeFi sphere. jUSDC is expected to help the team achieve its goals by being a uniquely compatible strategy. Moreover, jUSDC comes with the features of low risk and high return, along with being regularly audited.
Klima looks to contribute to the partnership through the Treasury, which has been in the interest of everyone looking to build ReFi for everyone’s benefit, including community members and builders.
The mechanics of the jUSDC come loaded with functionalities, and GLP is the most scalable yield in the decentralized finance sector. It has more than $400 million in TVL. GLP helps the ecosystem since it is the basic substrate for jGLP and jUSDC. This means both have been built on GLP for higher efficiency.
GLP is leveraged only after jGLP borrows from jUSDC to enhance the yield and delta. While the data barely matches, it does successfully come closer to the actual crypto market to roll out decent yields to the community.
Stability refuses to take a back seat and must be acknowledged at all levels, including with jGLP, where leveraging and deleveraging keep the collateral ratios stable, making the overall architecture unique with higher efficiency and better yields.
A pristine stablecoin vault is ideal for users looking to get away from a risky venture. Since lending criteria are transparent, it can be seen that the APR will be much higher than the yields available on the crypto blue-chip money market. An architecture that is superior to GLP hedging models and has no basis risk or short gamma risk. Naturally, it has zero constant hedging costs.
jUSDC accrues its yield in USDC for a rough range of 6% to 8%. If the conclusion is to be believed, then Klima could soon become KIP, following which a proposal would be tabled to make the Klima Treasury whitelisted for jUSDC to grant the community access to deposit their tokens.
Since the post is in a forum, the community has been quick to respond to the news, with some saying that they are excited and others saying that they are looking forward to it.
