March 25, 2025
A New Yield Farming Protocol Launches TOMORROW
Dear Subscriber,
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| By Bruce Ng |
Stable Jack (JACK, Not Yet Rated) is a new stablecoin platform that will launch its token on March 26, 2025, at 8 a.m. Eastern. It will launch on Fjord Foundry, which is a platform that conducts public sales.
Think of a public sale as an IPO for crypto, with the key distinction that anyone, anywhere in the world with an internet connection, can buy it.
The launch of a new project isn’t unusual. But the role Stable Jack is poised to play makes this launch one worth paying attention to.
It is positioned as a stablecoin hub, primarily on the Avalanche (AVAX, “B”) network. Stable Jack splits the yield and volatility of any collateral asset into two tokens:
- aUSD, a USD-pegged, yield-bearing stablecoin that accrues yield from the collateral, and
- xAVAX, a token offering fixed or variable leverage exposure without liquidation risk.
This allows users to access flexible investment options such as leveraged yield, leveraged volatility and long positions without liquidation risk.
And after the public sale, Stable Jack will expand to the Sonic network.
Stable Jack Deep Dive
Stable Jack stands out with several unique features.
Most notable is how it removes the risk of liquidation. This is thanks to its system that maintains a collateral ratio. And that includes for leveraged positions.
It also boasts impressive principal protection, ensuring users maintain their principal while accessing yields or volatility.
Stable Jack also offers impressive yields, with aUSD offering competitive returns, for single-sided staking — i.e., only providing liquidity for one asset, rather than the usual pair, to enhance trading efficiency.
These features position Stable Jack as a competitor to projects like Pendle (PENDLE, “B”), which soared 913% from the start of the bull market to its latest all-time high.
And it’s already posting an impressive performance, especially for a project that doesn’t even have its native token — JACK — available for sale yet.
In fact, its total value locked — the total value of the assets locked up in a platform’s smart contracts, one of the best measures of usage and adoption in DeFi — is already at $5.2 million on the Avalanche network.
Stable Jack’s planned expansion to the Sonic network will likely send its TVL even higher.
I will note, however, that its Mcap-to-TVL ratio of 4 upon launch still leaves much to be desired. Similar to the venerable PE ratio, which may be more familiar to stock market investors, the lower the ratio, the better the bargain investors are getting.
In comparison, yield platform leader Pendle Finance has an Mcap/TVL of 0.09, which is many times better than Stable Jack.
That means at launch, Stable Jack won’t be priced at a discount. That doesn’t mean this isn’t a worthwhile opportunity. Rather, it is an important piece of the puzzle you’ll need to hold onto as you decide whether to pursue it.
Some Red Flags About Jack
A notable concern is that, like many DeFi protocols, Stable Jack has chosen to keep its team anonymous. And while that doesn’t necessarily mean anything negative, it does mean Stable Jack could hit roadblocks.
DeFi is a space where trust and credibility are crucial, and the lack of information on the team could undermine user trust over time.
Not only that, but with renewed calls and steps toward clearer and more robust regulation over crypto, Stable Jack could lose out on opportunities to DeFi projects that can be vetted and abide by new regulations.
In addition, the project is relatively new. That means it has an unproven track record for maintaining stability, especially given the complexities of stablecoin mechanisms.
At this point, I wouldn’t consider JACK as an immediate opportunity. If you’re looking for your next DeFi play, I suggest you monitor its price action on TGE, follow the project on social media and watch for further developments before making any commitments.
Best,
Dr. Bruce Ng
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