CJPY is Yamato's decentralized Japanese yen stablecoin, minted from overcollateralized ETH pledges via Liquity-v1-style permissionless CDPs. The static profile records its Japanese Yen peg mechanism as: Overcollateralized ETH CDPs (pledges) with game-theory peg maintenance: (1) hard floor via on-chain redemption of 1 CJPY for 1 JPY worth of ETH from the riskiest pledge; (2) subrogation mechanism uses accumulated protocol fees to automatically repay positions below 100% health rate; (3) non-forced liquidation where any user can redeem debt positions below 130% using market-purchased CJPY.

As of Nov 8, 2026, Pharos grades CJPY C (55/100) on its Safety Score. Pharos's reviews record that admin controls such as a pause or an upgradeable contract exist, though no power to freeze a specific holder was found, and any holder can use its reviewed redemption route. That is a middle-band grade: it meets baseline expectations but carries meaningful weaknesses. The grade moves as reserve, redemption, peg and control evidence changes; the live Safety Score on this page shows the current reading.

Pharos records CJPY's reserves as of Jul 15, 2026 as 100% ETH. Reserve evidence: live reserve feed configured. Pharos classifies the backing as Crypto-Collateralized.

Based on tracked contract metadata and blacklist coverage, admin controls such as a global pause or an upgradeable contract are recorded, but the review found no active power to freeze or seize a specific holder's balance on material deployments.

Under the route Pharos reviewed on Aug 12, 2026, any holder can redeem CJPY for ETH. Redemption settles atomically on-chain. The reviewed terms charge no percentage redemption fee. Whether a given holder qualifies is set by the route's own terms, not by this summary.