> For the complete documentation index, see [llms.txt](https://jigsaw.gitbook.io/jigsaw-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jigsaw.gitbook.io/jigsaw-protocol/tokenomics/tokenomics-overview.md).

# Tokenomics Overview

Jigsaw’s token ecosystem revolves around three key components: **$JIG**, **$sJIG**, and **jUSD**. These tokens are central to the platform’s governance, incentives, and liquidity mechanisms.

<figure><img src="/files/7Kz261HB1Pr9XpGpQa5V" alt=""><figcaption></figcaption></figure>

### **$JIG**

The liquid, tradable governance token that enables holders to participate in decision-making processes and influence the protocol’s incentive distribution.

### **$sJIG**:

The staked version of $JIG, which unlocks governance rights and rewards. By staking $JIG, users earn $sJIG and can vote on key protocol decisions while earning rewards based on their participation.

### **$jUSD**

Jigsaw’s native overcollateralized stablecoin, designed for liquidity and composability. jUSD can be minted by depositing collateral into the platform, offering fee-free borrowing while keeping collateral active across yield-generating strategies.

### Locked $JIG

As the platform matures, **Locked $JIG** will also be introduced. This feature will allow users to lock their $JIG tokens for a fixed period in exchange for boosted voting power, enhanced rewards, and access to real yield from platform fees. Locked $JIG is a key part of Jigsaw’s roadmap to incentivize long-term alignment and participation.

{% hint style="info" %} <mark style="color:blue;">**Jigsaw’s token system is designed to align incentives between users and the protocol, ensuring long-term growth and sustainability.**</mark>
{% endhint %}

***

### **Collateral**

Jigsaw supports a diverse range of collateral types, each with unique Loan-to-Value (LTV) ratios based on their overall risk profiles. These include:

| Majors (80% LTV)       | Stablecoins (80-90% LTV)     | LST/LRT (70-75% LTV) |
| ---------------------- | ---------------------------- | -------------------- |
| BTC, ETH, wETH, wstETH | USDC, USDT, USDe, USDs, rUSD | rswETH, weETH, ezETH |

{% hint style="info" %} <mark style="color:blue;">**This collateral framework ensures flexibility and risk-adjusted borrowing limits, enabling users to maximize their capital efficiency while maintaining security across the platform.**</mark>
{% endhint %}


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