Allied Architects and Dawn Labs have launched JapanSOL, a project to support Japanese companies' use of SOL. The project includes the issuance and operational design of deposit receipt-style digital assets and support for Jupiter's lending and borrowing services.
Allied Architects and Dawn Labs have jointly launched JapanSOL, a project supporting Japanese companies in holding and using SOL, a crypto asset. Operations will be handled by Allied Verse Pte. Ltd., a wholly owned subsidiary of Allied Architects.
JapanSOL uses a liquid staking model under which depositing SOL results in the issuance of a digital asset representing a deposit receipt. The deposited SOL is delegated to validators, where rewards accrue. The deposit receipt can be transferred, traded and used as collateral, while the rewards are structured to increase the amount of SOL that can be exchanged for JapanSOL.
Dawn Labs will operate the pool and use the Sanctum platform to manage issuance and liquidity. Multiple participating companies are involved in operating validators for JapanSOL and plan to contribute a portion of the rewards to the pool for distribution to holders.
Borrowing using the Multiply function of Jupiter's lending and borrowing service, Jupiter Lend, is now available. This automates leveraged operation in which SOL is borrowed against JapanSOL and used to acquire more JapanSOL. However, losses and liquidation risk also increase at the same time.