The Dual Tranche
Janus separates collateral into two distinct tranches:
Alpha (α): The risk-absorbing junior tranche. It effectively provides leverage on the underlying collateral's performance.
Omega (ω): The risk-averse senior tranche. It is prioritized for redemption, aiming for stability and protecting its $1.00 Price.
Epoch Market
A periodic prediction market built directly into the protocol.
Users bet Omega on whether the protocol will remain stable (YES/NO). Winners claim the losing pool.
MVP Note: Market fee is disabled (0%). Rewards come from vault mint/redeem fees.
Rewards & Value Accrual
Janus's architecture maintains Coverage Ratio > 100% while generating yield through three mechanisms:
Alpha Pool (70%) — Stake Alpha and bet YES to claim rewards from YES epochs. Active participation aligns with conviction in protocol stability.
Omega Pool (30%) — Simply stake Omega — no bet required. Receive protocol fee share from every YES epoch.
Fee Retention — A portion of vault mint/redeem fees stays as surplus collateral, driving Alpha's NAV higher over time.
Yield Integration — Idle vault collateral earns external yield (e.g., Aave/Compound). This yield is distributed as Omega rewards, creating additional income for stability-focused holders.
The Prisoner's Dilemma
Why holding through dips is the dominant strategy in Janus Protocol.
Interactive Payoff Matrix
Tap any cell to see the outcome
"Stay" is the dominant strategy
Regardless of what others do, staying gives you a better outcome. If others also stay → normal rewards. If others leave → you get an even bigger share.
The Jackpot Effect
During NO epochs (crashes), rewards roll forward and accumulate. The longer the drought, the bigger the payout when YES finally hits. Diamond hands get the jackpot.
The Exit Tax
Redeeming tokens charges a protocol fee that goes straight to the reward pool. Leavers literally pay the stayers. Plus, you crystallize your loss at the crashed NAV.
Asymmetric Upside
The ratcheting floor means Alpha never forgets its high. Recovery doesn't just restore — it captures the new high as the permanent floor, locking in progress.
How do I use Janus?
The Stability Seeker
"I want lower volatility than shorting, with conditional appreciation."
- 1.Go to Vault page.
- 2.Mint Omega (ω) using USDC.
- 3.Hold Omega as a lower-volatility position, or stake Omega on the Rewards page for protocol fee share.
- 4.Redeem for USDC anytime (subject to vault health).
The Fee Participant
"I want to maximize my share of protocol fees."
- 1.Go to Vault page.
- 2.Mint Alpha (α) using USDC.
- 3.Go to Rewards page and stake Alpha (or Omega for protocol fee share).
- 4.Vote YES in Epoch Market to signal confidence.
The Speculator
"I want to profit from market predictions."
- 1.Acquire Omega (or mint it).
- 2.Go to Epoch Market.
- 3.Bet YES (Stability) or NO (De-peg).
- 4.Winners claim the losing side's pool at epoch end.
The Arbitrageur
"I restore the peg for profit."
- 1.Monitor Omega price vs $1.00.
- 2.If Price > $1.00: Mint Omega at $1.00, sell at market.
- 3.If Price < $1.00: Buy Omega at market, redeem for $1.00.
- 4.May profit from arbitrage while restoring stability.
DISCLAIMER: The content provided in this application is for educational and informational purposes only and does not constitute financial, investment, or trading advice.
Janus is an experimental protocol. Smart contracts are subject to risk. User discretion is advised.