JrBTC is an on-chain leveraged BTCMagnify your Bitcoin position without losing sleep JrBTC is an on-chain leveraged BTC |
You don’t need to be a professional trader to use JrBTC. Just swap cbBTC for it and swap back whenever. No margin, strikes, or maturities.
No liquidations. JrBTC utilizes perpetual tranching which means there's no need to babysit positions or perfectly time markets.
At 1.2x volatility, JrBTC offers just enough leverage that its holders can outperform Bitcoin, without the stress.
The Fragments protocol works by reorganizing the volatility of an input asset (cbBTC) into senior and junior perpetual tranches. Sr tranches are lower in volatility than their underlying asset; and Jr tranches are higher in volatility than their underlying asset.
Holding both Sr and Jr perpetuals in the right ratio is equivalent to holding the underlying asset because net volatility is conserved.
The system has configurable hyper-parameters (including fee rates). These parameters and any balance of assets accrued by protocol fees will be governed by a third token, the details of which will be revealed later. To learn more see the documentation.
To balance demand for stability and volatility, the protocol carries a bidirectional funding rate. This means when demand for the Jr is high, holders of the Sr receive a yield—incentivizing new demand for Srs and vice versa.
Users can take the low-volatility side of this ("cash and carry") trade by holding the Sr which is insulated from volatility, and harvesting the yield generated by demand for leverage.
Note — At market equilibrium, we expect the Sr to carry a yield that's competitive with the broader risk-free-rate of stable assets. The cost of leverage for holding the Jr is simply the mirror image of this yield.
Junior | JrBTC provides magnified (1.2x) BTC exposure without risk of liquidations. |
Senior | SrBTC is a safe asset. It's a derivative of cbBTC that's insulated from volatility. |
Governance | Forth is the Fragments protocol's governance token. It manages parameters and fees. |
Follow the release schedule of SrBTC and JrBTC on Twitter (X) and learn the mechanics by reading the docs. Contact us below if you're interested in becoming a TVL or distribution launch partner.