Introducing JusDeFi

9 min readOct 20, 2020

Overview

JusDeFi is a next-generation yield farming experiment, combining some of the most exciting features from today’s biggest players in decentralized finance with revolutionary new tokenomics of our team’s own design.

Tokens within the JusDeFi ecosystem will be subject to a dynamic fee when unstaked, which will be used both to enrich the staking rewards pool and for a cyclic token burn. Unique to our platform, this unstaking fee will be subject to a weekly community-governed formulaic recalculation, which will in turn determine how many tokens are burned in each cycle.

Fee governance will be done via an easy-to-use bidding process in which ETH deposits will be made in order to increase or decrease the fee. These ETH will be collected and used to buy back tokens at market price, directly increasing the token value.

This unique combination of mechanisms will give the token strong deflationary momentum, creating scarcity and constant buy pressure, rewarding early adopters and speculators alike.

Rising from the ashes of an all-too-common occurrence in DeFi — a “rug pull scam” — JusDeFi is the reimagining and refinement of AmplyFi, and it is structured to become one of the first ever true attempts to recoup lost value for the victims. The code has been rewritten from the ground up; all back doors and malicious code has been removed, and the ecosystem has been fully realized by an experienced team. The project will be professionally audited, and those results will be made public before the liquidity event.

Most exciting, for many, is the fact that we have tracked the wallets and investment amount of all of the original investors of AmplyFi, and we’re thrilled to announce that all of these victims will be set aside an equivalent amount of JusDeFi tokens, pre-staked and locked, earning the holders rewards from day one!

Background

AmplyFi was a compelling project: a chimaera of Ampleforth, with its brilliant rebase system, and CORE, with its fee-on-withdrawal and buyback systems, price-pegged to the hugely popular YFI token. The idea was intriguing, the hype was huge, and over 500 people decided to take the leap and invest.

Unfortunately, many of us already know what happened next. Shortly after the presale cap was reached, the website shut down, claiming to be hacked, and the developer became unreachable. He had exploited a well-hidden backdoor in the code to withdraw all of the ETH.

A small handful of users (most of whom were among the top contributing wallets) started a discord channel to discuss what could be done. In those discussions, the idea to relaunch the token under a new name came up, and was embraced quickly by five users: two solidity experts, two marketing and strategy professionals, and a front-end designer. This team dug through the code, at first trying to simply remove the malicious code. Eventually, it became clear that there were significant improvements to be made on the entire ecosystem, and the decision was made to rewrite the code base from the ground up.

And so, in order to bring justice to the victims and value to all, JusDeFi was created.

Tokenomics

JusDeFi takes a novel approach to yield farming, and its tokenomics are carefully constructed to add constant and consistent value to holders. Participants are free to stake JDFI tokens directly (or to stake LP for even larger rewards) and our unique fee structure powers the burn and buyback systems which in turn drive price action.

Token Allocation

10,000 tokens go to depositors who participate in our liquidity event
10,000 tokens will be locked into the initial liquidity pool
10,020 tokens go to the Justice Fund (more on that later!)
2,000 tokens will be allocated to seed the initial rewards pool
1,980 tokens are set aside for the dev fund, which will be used to pay expenses such as marketing, audit, and to help secure future partnerships

Liquidity and Staking

Like other platforms, JusDeFi is at its core a yield farming protocol. However, we have reimagined and refined many of the common components of its predecessors, providing some welcome quality-of-life changes alongside some more subtle tweaks.

There will be two types of staking, and both will happen within our staking portal. After the conclusion of the liquidity event, new investors will have the option of depositing ETH directly into the portal and receive in return either pre-staked JDFI or pre-staked LP. Of course, tokens can always be bought directly from an exchange and staked that way. Because liquidity is so crucial for an ecosystem such as this to thrive, JDFI-LP tokens will earn triple the rewards of JDFI.

To incentivize continued, long-term staking, and therefore the scarcity and value of circulating tokens, we’re adding a quality-of-life feature to help stakers avoid fees, both from gas and those incurred through the JusDeFi ecosystem. Anyone who wants to “compound their interest” by reinvesting their pending dividends harvest can do so for no fee with the click of a button.

Rewards will be paid out weekly to all token holders based on the size of the total rewards pool and the proportion of LP stakers to JDFI stakers.

Community-Governed Fees

One of the things that we really liked about the original project was that it combined the concept of rebasing with a fee-on-withdrawal yield farm in such a novel way. However, as we broke down and thought through how this system would work in reality, we found that the original concept had two major flaws:

Originally, the price of the token was going to be pegged to YFI and then rebased from there on a weekly basis. We felt this to be too arbitrary, and too unstable, to sustain a long term project.
We noticed that only the original developer could set the rebase value, and there were no parameters governing that decision.

In considering how to solve these problems, we first thought that a randomized, formulaic rebase could add some excitement and controlled volatility to the token price. However — given the background of this project — trustworthiness and security were (and remain) our top priority, and the unfortunate reality is that there is no safe way to introduce true RNG to a smart contract without the possibility of manipulation.

However — we thought — what better randomizer could we ever hope to find than the whims of the cryptocurrency community? By changing the nature of the “rebase” to instead dynamically adjust the unstaking fee and giving control over to our community, we believe we have created a unique opportunity for speculators and stakers to have their differing voices heard.

Fee Structure

One of the driving principles of value-generation within the JusDeFi ecosystem comes from fees. In short, any time a user unstakes their tokens or collects their yield rewards, a fee is taken. This fee is dynamic, starting at 10% and moving between 0% and 20% each week depending on the desires of the community. Half of each fee is instantly and permanently burned. The other half is sent into the rewards pool for redistribution.

Bidding System

As mentioned, the unstaking fee will be dynamic and controlled by the JusDeFi community through a system of simple governance.

By depositing ETH into our secure smart contract, investors can increase or decrease the staking fee depending on their desires. Are you a speculator, looking to squeeze maximum value out of your tokens during a short- or medium-term hold? Vote to decrease the fee. Are you a long-term staker, looking to pump up your yield percentage? Vote to increase the fee.

The first voting period will begin Sunday, November 1st at 12:00:00 AM UTC. Voting periods will last exactly 1 week (168 hours). There will be no upper or lower limits to how much you can contribute, but we have implemented a Sigmoid function to keep the voting competitive within the parameters and to ensure more voting parity between opposing factions. By design, the Sigmoid will be weighted heavily away from the “center”, giving even the smallest of bids the ability to significantly move the fee if it’s currently close to the weekly origin point. Participants will be able to follow the estimated outcome in real time on our bidding portal.

100% of the ETH that is collected during the weekly bidding cycles will be used by the smart contract to purchase JDFI at market price and permanently burn it.

Token Burn & Buyback

The other main source of value-generation comes in the form of frequent and aggressive token burns, which are facilitated by multiple mechanisms within the smart contract. Token burns are a safe and structured way to continually increase the value of the remaining tokens by lowering the overall supply.

Let’s take a look at the different ways that JusDeFi is set up to do this:

Half of all tokens that are collected as fees from unstaking will be burned.
All ETH collected from the bidding will be used to buy back tokens at market price. These tokens will be burned.
As new LP enters the pool, the original liquidity will be proportionally removed and dissolved. The JDFI will be burned and the ETH used to market buy tokens, which will be burned as well.

Note that because two of these three functions are reliant on market price, the token burn rate will be significantly higher in the early days of the project.

Victim Compensation

Compensating the victims of the AmplyFi incident was the impetus for this project, and it was crucial to the development team that we find a solution that would be fair and equitable for both original investors as well as the new round of investors that will be participating in our liquidity event.

While we cannot get back the money that was stolen, we can still bring value to these victims. At the conclusion of the liquidity event, every wallet that recorded an outgoing transaction to the AmplyFi presale address will receive an equal amount of JDFI tokens, pre-staked and earning rewards from day one.

Unlike those of the new investors, these 10,000 tokens — the Justice Fund you saw earlier — will be locked into the protocol. Their locked status, however, is not permanent; these tokens can be withdrawn at any time with a one-time payment of their original AmplyFi price (0.25 ETH) — regardless of the current market price.

Liquidity Event

JusDeFi’s liquidity event will go live on Friday, November 6th at 20:00 UTC. Users can participate in the liquidity event through the portal on our website.

The liquidity event will last for three full days (72 hours). In the event that the goal is not met, all remaining tokens will be permanently burned.

The initial price for the liquidity event will remain 0.25 ETH/JDFI.

All ETH collected during this event will be locked into the initial Uniswap liquidity pool. This pool can only be changed by the smart contract in order to implement the LP burn mechanism discussed earlier.

Audit & Smart Contract Release

JusDefi has been professionally audited by Callisto Network. The code was scoured for back doors, redundancies, or security issues of any kind. This audit was completed on November 5th, 2020.

Our smart contract is public and is available to view on our GitHub.