3Jane
About
3Jane is a credit-based money market that issues USD3, a yieldcoin backed by a pool of uncollateralized credit lines to crypto-native entities. It enables suppliers to deposit USDC and earn yield by providing liquidity to credit lines underwritten against verifiable proofs of creditworthiness, DeFi assets, and future cash flows. The protocol operates as a two-sided market connecting creditors (suppliers) with merchants (borrowers) seeking 0% collateral credit facilities.
Where Does Yield Come From?
3Jane generates yield through a two-phase system with two layers of tokens. Suppliers deposit USDC to mint either USD3 (the safer senior layer) or sUSD3 (the riskier junior layer).
Phase 1 (bootstrap): During this starting phase, USD3 is fully backed by deposits in Aave that earn interest based on the SOFR benchmark rate. USD3 itself does not earn native yield at this stage. Meanwhile, sUSD3 acts as the "first-loss" layer that bears the risk but also earns all the net interest. It has a 1-month lock-up period. The interest comes from two sources: the Aave deposits and the unsecured credit lines extended to merchants.
Credit lines are given to merchants (crypto users or AI agents) after checking their creditworthiness. This underwriting looks at credit scores, assets held in DeFi platforms, centralized exchanges, or traditional banks, and future income verified through secure proofs (zkTLS).
Phase 2 (risk-on): Once the system matures, it shifts to a fixed 85/15 split between the layers. Here, USD3 becomes a senior layer that earns yield and has priority for liquidity. sUSD3 remains the junior first-loss layer.
The pool's total yield comes from two main sources:
- Idle liquidity deposited in Aave, earning rates based on SOFR.
- Interest from merchant credit lines, which is determined by a base rate (that depends on how much of the credit line is used) plus extra charges for credit risk and urgency.
The overall pool interest rate is a weighted average: the Aave portion's weight times its rate, plus the sum of each merchant loan's weight times its rate.
How yield is distributed: The USD3 senior layer gets its share of interest first. After that, sUSD3 receives the remaining spread, after also setting aside reserves. However, sUSD3 is the first to absorb any losses if loans go bad.
How merchant credit works (Discount Factor Rate): Borrowers receive an advance and agree to repay a fixed multiple of their future yield. They can get a discount for repaying early. This discount shrinks over time based on daily adjustments that include the base utilization rate, the borrower's credit risk, and any late payment penalties.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Veridise07-08-2025 - 18-08-2025 |
| The audit uncovered critical and high-risk vulnerabilities that could lead to fund loss or denial-of-service, though developers promptly fixed most severe issues, reducing immediate risk while highlighting design weaknesses around access control and validation. |
Sherlock20-08-2025 |
| The audit reveals significant accounting and access control vulnerabilities that could compromise protocol solvency and enable user fund trapping; remediation of these critical logic flaws is essential before mainnet deployment. |
Electisec18-10-2025 |
| The audit found no critical vulnerabilities, with the protocol demonstrating solid architectural foundations. One high-severity issue was identified and removed, while several medium and low issues require attention in future releases. |
Sherlock Competition18-10-2025 |
| The audit uncovered multiple medium-severity issues in the 3Jane protocol's yield accounting, deposit locking mechanisms, and EIP-4626 compliance, which were identified during a Sherlock competition engagement and require remediation to prevent potential fund loss or protocol dysfunction. |
Backers
Raised $5.2M seed round led by Paradigm, announced June 4, 2025. Additional investors include Wintermute Ventures and Coinbase Ventures, as indicated by logos on the official website under "Backed By" section. The funding was for enabling cryptonative credit creation and scaling the credit-based money market protocol.
Legal
Legal form
corporation
Registration jurisdiction
Panama
Status and notes
Operating entity is Tulkum Assets Corp., a Panamanian corporation, as disclosed in Terms of Service (last revised September 1, 2025) and Privacy Policy. Website footer states "2026 3Jane Protocol, All Rights Reserved, A 3Jane Project".