Juice Finance has been designed to enable community control in its core. Since there are no pre-mines for the team, developers and founders, this means the protocol will be controlled by those who decide to mine Juice Tokens (JUICE). To create a proposal, a proposer will need 300,000,000 JUICE and the proposal must reach at minimum 600,000,000 JUICE quorum to be approved.
Governance features include:
● Adding new cryptocurrencies or stablecoins to the protocol
● Adjusting variable interest rates for all markets
● Setting fixed interest rates for synthetic stablecoins
● Voting on protocol improvements/proposals
● Delegate protocol reserve distribution schedules
The protocol has interest rates that are designated per market from both the supply side and the borrowing side. Interest rates are also applicable for synthetic stablecoins that are created on the JUICE Finance protocol such as JUSD.
The interest rates provided for markets that can be borrowed or supplied are dynamic and have a yield curve that varies based on utilizations. These interest rates are also set from a floor to ceiling based on the Governance process of the protocol.
For synthetic stable coins, the interest rates to mint these are fixed. There is no variable interest rate design in these interest rates. However, through the Governance process, users are able to control.
Each Juice Token contract and underlying collateral will have a reserve factor from a basis of 0–90%.
This means there will be reserves that the protocol captures between the spreads of borrowing and supplying. These reserve factors are added to the protocol and can be used for community development, improvements, protections, and more. These Reserve Factor funds are controlled by the Governance process and can be used in a variety of protocol security distributions or rewards mechanisms.