- This step increases the utility of wstETH by transforming it from a simple staking token into an active collateral asset on the JOJO exchange.
- Chainlink’s high-frequency data feeds ensure accurate real-time pricing of wstETH, supporting reliable collateral evaluation.
JOJO Exchange has integrated a new innovation with Lido and Chainlink, allowing decentralized finance (DeFi) users the ability to use wstETH as collateral on its platform. In doing so, this integration further leverages the utility of wstETH, an interest-generating token representing Lido’s staked Ethereum. It will now use Chainlink’s high-frequency data feeds to ensure reliable real-time pricing.
wstETH Gets New Trading Use Case on JOJO Exchange
JOJO now allows customers to put their wstETH as collateral to trade perpetual futures contracts. This allows the holder to remain active on the platform and not lose the staking rewards offered by Lido. Through this means, users maintain their staking benefits while participating in market activities. Thus, it guarantees a double benefit by integrating passive staking income ideas with active trading opportunities.
This is actually an important milestone for Lido, taking the usefulness of wstETH to a new level. Traditionally, wstETH was just a representation of the ETH staked and provided staking returns. While its new collateralization feature on the JOJO exchange makes it more attractive to commercial users interested in both trading and staking, it better supports liquidity growth, creating a livelier use case for the token that reinforces its value within the DeFi ecosystem.
Additionally, Chainlink plays a crucial role in this collaboration by providing low-latency, high-frequency price data for wstETH and other assets via Chainlink Data Streams, according to the CNF report. This decentralized infrastructure ensures that collateral valuation is accurate and secure, which is of utmost importance to JOJO’s trading platform. By using Chainlink technology, JOJO Exchange can manage collateral risks in the best possible way and offer more complex financial services to its users.
Spotlight on JOJO’s user-centric approach
At the same time, it is important to note that JOJO introduces a user-centric approach to collateral management. Users can create JUSD, a native stablecoin of the platform while maintaining full control over the amount of credit they use with wstETH.
Unlike most platforms that allow users to benefit from rapid liquidation in terms of market fluctuations, users can adjust their collateral positions in JOJO, thereby minimizing the risk of forced liquidations. This allows the trader to be more versatile when trading.
wstETH does not negatively impact the security of account holders. JOJO also helps manage risks. All collateral types will benefit from strong risk management, making it an attractive solution for traders. It is part of the mission to offer new solutions to perpetual decentralized exchanges on Base.
This integration shows how collaboration can improve innovation in the DeFi space. By bringing together Lido’s staking know-how, Chainlink’s data infrastructure, and JOJO Exchange’s advanced trading mechanisms, this partnership is a snapshot of the composable DeFi ecosystems at their core. Users may see increased asset utility, seamless technology integration, and better trading capabilities as decentralized finance platforms continue to grow.
