Phase 1: Piece Assembly

Jigsaw’s initial phase will focus on the “flexibility” component theme of dynamic collateral.

In practice, Jigsaw will allow users to unlock high flexibility with their collateral, by interacting with any supported protocol and swapping between all whitelisted assets.

When it comes to the types of collateral Jigsaw will support our initial focus is on the following verticals:

1. Liquid Staking Tokens

2. Liquid Restaking Tokens

3. RWA

Generally, Jigsaw allows users to supply tokens from all of these verticals and borrow jUSD against them. Users constantly benefit from Jigsaw’s built-in collateral flexibility. This means that, even with an outstanding loan, a user can seamlessly move, trade and further utilize these collateral assets – without any loss of flexibility. Effectively, a user can swap from a liquid staking token to a RWA or supply a liquid restaking token, borrow against it, swap jUSD into a RWA protocol and much more.

Furthermore, all of these integrations will allow holders to leverage up on their exposure by looping through Jigsaw.

Let us dive into a tangible example

Restaking and Liquid Restaking Tokens Example

Users on Jigsaw will be able to freely restake their liquid staking tokens into a specific restaking protocol. This means that every user can freely choose what restaking protocol and AVS (actively validated service) they want to get exposure to. As we will support multiple LRTs, it will also be possible for users to get exposure to a basket of diversified LRTs with their collateral.

Users can then borrow against their restaking position, and still move it around freely. This means utilizing the liquid restaking token in other supported protocols. For instance, if Pendle, or a similar project, were to support a specific LRT, a user on Jigsaw would be able to split its position into a principal token and future yield token, and trade each separately within the protocol. They can do this all while borrowing jUSD against this trade and remaining in full control of the collateral position throughout this whole process.

A new LRT protocol could partner with us to instantly allow their users to instantly utilize the LRT as collateral. This increases the utility of the LRT, gives holders higher flexibility and even lets them regain some locked up liquidity.

As mentioned earlier, this is totally independent of the respective design of the LRT and can support various protocol design choices. Therefore, we can support “basket”-LRTs, fully hedged LRTs and much more. Consequently, Jigsaw limits the “loss of fungibility” inherent to restaking, which is due to a different risk and reward profile of various AVSs and LRTs. The same types of interactions are possible with LSTs, RWAs and any other supported asset.

Initial Collateral Assets and Protocols

Assets:

-WBTC

-ETH

-USDT

-USDC

Protocols:

-Ion Protocol

-FortunaFi

-AAVE

-Convex pools

Obviously, we will continuously add support for more collateral assets and protocols over time.

Timeline

Testnet in May

Audit May to June

Mainnet launch in June, depending on the results of the audit