CDPs · Review
ActiveYamato Protocol Review 2026: ETH-Backed Yen Stablecoin CJPY
Yamato Protocol is an Ethereum CDP protocol that lets users borrow CJPY, a yen-equivalent stablecoin, against ETH. It is a niche, small-scale product aimed at yen-denominated DeFi.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.3/10
Mixed
Our verdict on Yamato Protocol
6.3/10Yamato Protocol suits experienced DeFi users who want to borrow a yen-denominated stablecoin against ETH, or who follow Japanese-market DeFi. Its main strengths are a clear overcollateralized CDP design, listed audits and a niche yen focus. The main caveat is size: with roughly $1.6M in total value locked and ETH as the V1 collateral, liquidity is limited and liquidation risk is real. Check the fees and collateral rules in the docs before minting.
Score breakdown
How Yamato Protocol scores
- Security
- 6.5/10
- Ease of use
- 6.0/10
- Fees
- n/a
- Features
- 5.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Yamato Protocol?
Yamato Protocol is a crypto-asset overcollateralized stablecoin issuance protocol on Ethereum. Its V1 lets users mint CJPY, a Japanese yen-equivalent coin, by depositing ETH as collateral. The app describes itself as the interface to an internet-native stablecoin for the yen.
The project is small. It lists about $1.6 million in total value locked, has been tracked since August 2023, and its documentation was still being updated in 2025. The interface includes minting, voting on proposals and links to docs.
Yamato also has a DAO token, YMT, an ERC20 whose documentation says 55% of supply is distributed to CJPY borrowers. The project does not publish team details on the interface page, and much of its documentation is in Japanese.
How Yamato Protocol works
Yamato is a collateralized debt position (CDP) protocol. A user locks ETH in a smart contract and mints CJPY against it. The value of the ETH must stay above the value of the CJPY debt by a required margin, which is why the system is called overcollateralized.
If the collateral value drops too far relative to the debt, the position can be liquidated so the system stays solvent. To get the ETH back, the user repays the CJPY debt. The exact ratios and liquidation mechanics are described in the protocol's specification.
The YMT token is an ERC20 utility token connected to the protocol's DAO. Its documentation states that 55% of the total supply is distributed to people who borrow CJPY through Yamato, which rewards usage of the stablecoin system.
6 features
Key features
01
ETH-backed CJPY issuance
Users deposit ETH and mint CJPY, a yen-equivalent stablecoin, without selling their ETH.
02
Overcollateralized design
CJPY is issued against more collateral value than the debt created, the standard CDP safety model.
03
Yen-pegged stablecoin
The stablecoin targets the Japanese yen, giving users yen-denominated on-chain exposure that most USD-focused CDP protocols do not offer.
04
YMT DAO token
The ERC20 YMT token is linked to protocol governance, and 55% of supply is distributed to CJPY borrowers according to its documentation.
05
Governance and voting interface
The app has a mint section, a proposals voting page and links to documentation.
06
Public documentation
Docs cover specification, a user guide, FAQ, extended use cases, a development roadmap and contribution guidelines.
Pros and cons
What we like
- Offers a yen-denominated stablecoin, a niche most CDP protocols do not cover
- Overcollateralized design is a well-understood model for stablecoin issuance
- Two audits are listed for the protocol
- Public documentation covers specification, user guide, FAQ and roadmap
- Governance interface with live proposals and a DAO token for community participation
Watch out for
- Small scale, with about $1.6M in total value locked, so liquidity and market depth for CJPY are likely thin
- Single-collateral design (ETH) in V1 ties the system to the price of one volatile asset
- Yen-pegged exposure appeals to a narrow audience compared with USD stablecoins
- Documentation is mostly in Japanese, which can be a barrier for English-speaking users
- Liquidation risk: a sharp ETH drop can cost borrowers their collateral
- Fee levels, collateral ratios and audit details are not stated on the interface page and must be checked in the docs
Yamato Protocol fees
The interface page does not publish borrowing fees, redemption fees or collateral ratios. These parameters are set in the protocol and explained in the project's documentation, so check the user guide and specification before minting.
Beyond protocol charges, users pay Ethereum network gas on every transaction, which can matter on a protocol of this size when positions are small.
Is Yamato Protocol safe?
Two audits are listed for Yamato, though the interface page does not detail who performed them or what they found. Positions are held in smart contracts, so users face smart-contract risk, price-oracle risk and the risk of liquidation if ETH falls quickly. Users keep custody through their own wallet rather than handing funds to a company.
the public information available do not describe any regulatory status, insurance cover or past incidents. CJPY's peg depends on the protocol's design and market demand, and a small, thinly traded stablecoin can drift from its target. Read the audit reports and documentation, and start with small amounts.
6 steps
How to get started with Yamato Protocol
- 1
Install an Ethereum-compatible wallet and fund it with ETH for collateral and gas.
- 2
Read the user guide and specification in the official docs, including collateral ratio and liquidation rules.
- 3
Open the Yamato app and connect your wallet.
- 4
Deposit ETH and mint a modest amount of CJPY, leaving a wide safety margin above the minimum collateral requirement.
- 5
Monitor your collateral ratio and ETH price, and add collateral or repay CJPY if the position gets close to liquidation.
- 6
Optionally review live proposals and the YMT token documentation if you want to take part in governance.
Who Yamato Protocol is for
Yamato is aimed at DeFi users comfortable with CDPs who want yen exposure on Ethereum, for example to hedge or borrow in JPY terms without selling ETH. It is less suitable for beginners, for anyone who needs deep liquidity, or for people who cannot monitor a collateralized position.
Yamato Protocol FAQs
What is CJPY?
CJPY, short for Convertible JPY, is a stablecoin designed to track the Japanese yen. Users mint it by depositing ETH as overcollateralized backing in the Yamato Protocol.
What collateral does Yamato Protocol accept?
The protocol's V1 accepts ETH as collateral to issue CJPY. the public information available do not list other collateral types for V1.
Which blockchain does Yamato use?
Yamato runs on Ethereum. You need an Ethereum-compatible wallet and some ETH for collateral and for gas.
What is the YMT token?
YMT is the Yamato DAO Token, an ERC20 utility token tied to the protocol. Its documentation says 55% of total supply is distributed to users who borrow CJPY through Yamato.
Is Yamato Protocol safe?
Yamato lists two audits on its public profile, which is a positive sign. As with any smart-contract protocol, an audit does not remove the risk of bugs, oracle problems or liquidations, so only commit funds you can afford to lose.
What are the main risks of borrowing CJPY?
Overcollateralized borrowing carries liquidation risk if ETH falls sharply. Check the current collateral ratio, fees and liquidation rules in the official docs before borrowing, as the interface page does not state them.
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How we checked
Sources
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