Joinn provides access to on-chain Real World Assets such as US Treasury Bonds via what we refer to as "Earn Accounts". All Joinn's Real World Asset Earn Accounts are backed 1:1 with the underlying asset/s.
Instant liquidity vaults.
Using Joinn's own novel technology we have structured select Real World Asset Earn Accounts in a way that provides Users with instant liquidity. This instant liquidity is available up to the total amount of USDC reserves in that particular vault at any point in time.
These Earn Accounts are typically made up of 90% RWA's and 10% USDC reserves. As the USDC reserves deplete the Earn Accounts will automatically be rebalanced to the respective target reserves. Information on exactly what each Earn Account is made up of can be found by selecting the "Account Information" button under the heading of each of the Earn Accounts.
Each of these Real World Asset Earn Accounts has a Vault Contract Address and a Strategy Contract Address.
What is a Vault Contact and what is its purpose?
A Vault Contract is Smart Contract that acts as a "vault" and is where users deposit their funds into. These funds are then automatically deployed into the Strategy Contract. In the case of the Real World Asset Vault Contract, a portion of funds are held back in the Vault Contract to act as "reserves" to facilitate instant Withdrawals and Transfers.
What is a Strategy Contact and what is its purpose?
A Strategy Contract is a smart contract that controls when, how and where funds are deployed in order to generate yield based on rules of each specific Earn Account.
A simple overview how our DeFi Earn Accounts work
When Users hit deposit, funds are first directed into the Vault Contract and in return Users receive a share of this vault that represents their position within that particular Earn Account.
The Vault Contract then automatically transfers a predefined percentage of those funds to the Strategy Contract. A portion of funds remain in this Vault Contract to facilitate instant Withdrawals and Transfers up to the reserves value. Occasionally, depending on the status of the Strategy Contract, USDC reserves may move between the Vault Contract and Strategy Contract. The Strategy Contract then deploys the funds to purchase Real World Assets with our various partners.
In order to do this, funds are converted to USD by our partners to settle purchases with a Traditional Finance broker. Assets purchased via this broker are then placed in Custody with a third party custodian. Once this process has been undertaken then a tokenized security is minted and issued onchain that represents the assets held in custody. The tokenized asset/s are then sent to the Strategy Contract.
Note: The Value of the USDC sitting in the Vault Contract and Strategy Contract make up the total Reserves balance.
It’s important to note that Joinn does NOT have access to users funds.