Frequently Asked Questions

What is Jigsaw?

Jigsaw is a CDP-based stablecoin protocol that introduces dynamic collateral management. It allows users to borrow jUSD against their assets while moving collateral freely across supported DeFi protocols and assets—all without unwinding their loans.

What is jUSD?

jUSD is Jigsaw’s overcollateralized stablecoin, which users can mint by depositing collateral into the protocol. It provides fee-free borrowing and integrates seamlessly into the broader DeFi ecosystem, enabling composable strategies like trading, staking, and looping.

What is dynamic collateral?

Dynamic collateral enables users to reallocate their deposited assets across a curated list of whitelisted protocols and supported assets. Unlike traditional systems where collateral is locked into a single strategy, Jigsaw’s dynamic collateral ensures flexibility and adaptability to changing market conditions or yield opportunities.

What assets can I deposit into Jigsaw?

Jigsaw supports a wide range of assets, grouped into the following categories:

• Majors: BTC, ETH, WETH, wSTETH (80% LTV).

• Stablecoins: USDC, USDT, RUSD, USDS, USDE (80-90% LTV).

• Liquid Staking and Rewards Tokens (LST/LRT): rswETH, weETH, ezETH (70-75% LTV).

What happens if my collateral value drops?

If the value of your collateral falls below the required Loan-to-Value (LTV) ratio, your position may be liquidated to cover the outstanding debt. Jigsaw uses trusted price oracles to determine the value of your collateral and protect users from sudden market fluctuations.

Can I swap collateralized assets without repaying my loan?

Yes. Jigsaw allows users to swap assets within the same class (e.g., BTC ↔ ETH or USDC ↔ USDE) without unwinding their loans. This ensures flexibility in managing collateral without disrupting your borrowing strategy.

Are there any fees for using Jigsaw?

Borrowing jUSD is fee-free. However, minting jUSD incurs a 50bps fee, and a 15% platform fee is applied to all yield generated. These fees are designed to sustain protocol operations while keeping borrowing accessible.

What is the Loan-to-Value (LTV) ratio, and how does it work?

The LTV ratio determines the amount of jUSD you can borrow against your collateral. Lower-risk assets like stablecoins offer higher LTV ratios (80-90%), while riskier assets like LSTs or LRTs have lower LTVs (70-75%). Maintaining your LTV above the liquidation threshold ensures your position remains secure.

How do I start using Jigsaw?

• Connect your wallet (e.g., MetaMask) to Jigsaw.

• Deposit eligible assets into the protocol as collateral.

• Borrow jUSD and redeploy your collateral into yield-generating strategies.

• Use jUSD for trading, looping, or other DeFi activities.

How does Jigsaw handle price fluctuations of collateral?

Jigsaw relies on trusted oracles like Chainlink and Pyth to provide accurate price feeds for collateral assets. Liquidations only occur if the collateral value falls below the required LTV ratio, ensuring fairness and transparency in the liquidation process.

What makes Jigsaw unique?

Jigsaw introduces dynamic collateral, a feature that allows users to move assets freely across supported protocols and strategies without repaying loans. Unlike traditional static collateral systems, Jigsaw provides unparalleled flexibility, composability, and efficiency for DeFi users.