- This milestone increases the utility of wstETH by transforming it from a simple staking token to an active collateral asset on the JOJO Exchange.
- Chainlink’s high-frequency Data Streams ensure accurate real-time pricing for wstETH, supporting reliable collateral valuation.
JOJO Exchange has onboarded a new innovation with Lido and Chainlink, allowing decentralized finance (DeFi) users the ability to utilize wstETH as collateral on its platform. In doing so, this integration further leverages the utility of wstETH, an interest-accruing token representing staked Ethereum from Lido. It will now utilize high-frequency Data Streams from Chainlink to ensure reliable real-time pricing.
wstETH Gets New Trading Use Case On JOJO Exchange
JOJO now allows customers to stake their wstETH as collateral for trading perpetual futures. This enables the holder to remain active on the platform and not lose staking rewards offered by Lido. Through this means, users maintain staking benefits while partaking in market activities. Thus, it ensures a double benefit by integrating ideas of passive staking income with active trading opportunities.
This, in fact, is a milestone for Lido, which takes the utility of wstETH to a new level. Traditionally, wstETH was just a representation of staked ETH and offered staking yields. While its new collateral function on the JOJO exchange gives it more appeal to trading users interested in both trading and staking, it better supports growth in liquidity, creating a more lively use case for the token that reinforces its value within the DeFi ecosystem.
Moreover, Chainlink plays a crucial role in this collaboration by providing low-latency, high-frequency price data for wstETH and other assets through Chainlink Data Streams, per the CNF report. This decentralized infrastructure ensures that collateral valuation is accurate and safe, which is of utmost importance to JOJO’s trading platform. By using Chainlink technology, JOJO Exchange can handle collateral risks in the best way possible and offer more complex financial services to its users.
Spotlight Shines On JOJO’s User-Centric Approach
Meanwhile, it’s important to note that JOJO introduces a user-centric approach to collateral management. Users can mint JUSD, a platform-native stablecoin while keeping full control over how much credit they use with wstETH.
Unlike most platforms which make users experience speed liquidation in terms of market fluctuations, users can adjust their collateral positions in JOJO, minimizing the risk of forced liquidations. This enables the trader to be more versatile while trading.
wstETH doesn’t have a negative impact on security for the account holders. JOJO also helps manage risks. All types of collateral will have strong risk management, making it an attractive solution for traders. It stands in line with the mission to offer ground-breaking solutions to perpetual decentralized exchanges on Base.
This integration showcases how collaboration can improve innovation in the DeFi space. By putting together Lido’s staking know-how, Chainlink’s data infrastructure, and JOJO Exchange’s advanced trading mechanisms, this partnership is a snapshot of composable DeFi ecosystems at their core. Users get to see increased utility of assets, smooth incorporation of technologies, and better trading capabilities as decentralized financial platforms continue to grow.