Use Cases

Digital Payments

Bluejay Stablecoins can be used for digital payments in areas where:
    Digital payments & banking infrastructure is poor or non-existent, and/or
    Trust in banks as custodian to personal assets have eroded
For these users, Bluejay stablecoins ensure that the assets are fully backed by collaterals, are in full control by the user, and can be swapped for other assets easily.
In addition, these stablecoins provide a gateway to the decentralized finance infrastructure without formal on-ramp or off-ramp infrastructure. Anyone with their hands on any Ethereum or Polygon assets can create these stablecoins while maintaining exposure on the underlying asset. They can then provide informal on-ramp and off-ramp services for family, friends, and community members and earn swap fees in the informal P2P markets.

Point-to-point Remittance

Traditional remittance service relies on operators operating in certain corridors, often with some corridors unserved with absurdly high transaction fees. Often, informal networks of Hundi/Hawala agents serve these markets where formal remittance services are either unavailable or too expensive. However, remittance via the Hundi agents requires absolute trust in the agent and funds will not be available for approximately 3-4 days.
With Bluejay stablecoins, these agents can immediately perform a swap over the counter and settlement happens in seconds instead of days.
For Example:
If a migrant worker in Thailand is transferring Myanmar Kyat (MMK) to his family in Myanmar, he can now purchase MMKT over the counter, with Thai Baht with the Hundi agent and send that to the family in Myanmar in seconds.
In markets where Hundi agents are not available, these migrant workers may make use of crypto on-ramp infrastructure to send money home.
For example:
If a migrant worker in Dubai is trying to send money home to Myanmar, he can buy ETH or MATIC on the exchange and swap it for MMKT and send it home to his family members in Myanmar.

Foreign Exchange Price Discovery

Bluejay stablecoin also allow users to hedge against their local currencies by allowing them to either:
    1.
    Swap to assets like USDT/DAI/etc to protect against inflation or devaluation
    2.
    Swap to assets like BLU/ETH/etc to hold as investment
    3.
    Swap to collaterals and mint more stablecoins (essentially shorting the stablecoin)
Similarly, this present opportunity for other community members to buy these stablecoins when it is underpriced. This means that:
    1.
    Businesses paying in that currency gets access to the currency cheaper
    2.
    Remittance to that country becomes cheaper.
Over the long term, it creates a better price discovery mechanism for the currency it is tracking.

Relief Programs / Universal Basic Income

Bluejay stablecoins can also be used for relief programs where Non-governmental Organizations (NGOs) can send money into a target area or country with minimal disbursement infrastructure on the ground.
Similarly, developers can easily design a universal basic income (UBI) scheme where funds can be streamed into the wallets of many target individuals to create a safety net as well as to jump-start an economy in depression.
For Example:
NGOs and individuals interested in sending monetary support to countries like Myanmar can pool together funds. Burmese can register via a simple KYC procedure to allow their wallets to receive streaming funds from the pooled funds. Using this method donors can ensure that their donation goes directly to the beneficiary and can verify the scale of the impact directly on the blockchain.

Savings, Lending & Borrowing

Besides the access to non-custodial digital payment solutions, the Bluejay Protocol gives individuals with stablecoins access to risk-free savings and access to other DeFi saving products.
Participants can lock up stablecoins they've minted within the Bluejay Protocol to gain access to risk-free savings, similar to MakerDAO's DAI Saving Rate.
Should individuals prefer higher rates, they may also use the stablecoins to gain access to a wide variety of projects like savings projects, lending & borrowing projects, or liquidity provider projects in both Polygon and Ethereum ecosystems.

Derivatives

Since stablecoins are the cornerstones of the decentralized finance stack, lots of protocols can be built on top of Bluejay protocol to give the user access to state-of-the-art financial services.
Derivative products like forwards, futures, options, and swaps can be built on Bluejay Protocol to allow not just retail users, but also businesses to tap into decentralized finance for their needs.

Trade Finance

Finally, programmable money representing different currencies will be the cornerstone in trade finance in the future.
With infrastructures like TradeTrust in place for electronic trade documents and UNCITRAL Model Law on Electronic Transferable Records for legal harmonization work, it would not be long before trade documents can not only be transferred but transactions settled in different currencies on the blockchain - solving big problems like risks in foreign exchange transactions.
Last modified 2mo ago