USDJ represents a price-predictable, low-volatility unit of account. USDJ can facilitate a wide range of financial activities that have previously been hampered by market speculation and instability.
A decentralized digital economy needs stability in order to function. The USDJ stablecoin represents a fundamentally new solution to this problem making it suitable for a wide range of financial activities.
- Hedging
During periods of high market instability USDJ offers a safe harbor to store value without having to exit the crypto ecosystem. Large holders of cryptocurrencies, such as hedge funds, foundations, or companies that have recently held a token generating event, may wish to convert their assets into a currency that is insulated from volatility.
- Decentralized exchanges
Decentralized exchanges are frequently unable to provide fiat off-ramps. USDJ allows its users to trade their assets for a low volatility currency that tracks the value of the USD.
- Exchange pairs
Crypto-to-crypto trading can be a complicated proposition. It is difficult to track earnings when both sides of a trading pair are rising and falling in value. Creating low-volatility pairings with USDJ allows for greater price predictability.
- Financial markets
USDJ can also be useful as stable and reliable collateral for use in custom derivative smart contracts, or when creating leverage.
- Merchant receipts, cross-border transactions and remittances
Foreign exchange volatility mitigation and lack of intermediaries means the transaction costs of international trade can be significantly reduced by using USDJ.
- Prediction markets and gambling
Long term betting becomes infeasible if users also have to gamble on the future price of the asset they are wagering. A cryptocurrency with price stability like USDJ can be the natural choice for prediction markets or gambling applications.