Vaults

As a comprehensive yield hub, we offer a range of strategies that allow users to tailor their risk preferences while maximizing their yield opportunities.

JLP Delta Neutral with USDC

We provide fully on-chain JLP Delta Neutral strategies for users who want to earn real yield from the fees generated by Jupiter Perpetuals, without exposure to the price fluctuations of JLP components like BTC, ETH, and SOL. This allows users to earn yield from JLP while minimizing the risks associated with volatile asset prices.

Mechanism

Users deposit USDC, which is swapped into JLP, creating a long position on the basket of assets in JLP, including Wrapped BTC, ETH, and SOL. To hedge this position and neutralize the impact of price fluctuations in these volatile assets, short positions are opened on Drift Protocol. In return, users receive vUSDC, an interest-bearing token that serves as proof of deposit and can also be used as collateral to borrow assets.

To ensure precise hedging against the exposure created by JLP, multiple factors are taken into account, considering the complex nature of JLP's asset structure.

Parameter	Description	Hedging Impact
Current Weightage	Represents the composition of volatile assets within JLP	Determines the amount of volatile assets that need to be hedged against
Utilization	Percentage of assets being utilized by traders	Indicates the relationship between Open Interest and pool size, affecting liquidity and risk management
Open Interest	Total size of active long and short positions	Influences the calculation of Traders’ PnL, which subsequently affects the price of JLP (the long position)
Traders Unrealized PnL	Approximate profit and loss for traders' unclosed positions	Traders' unrealized PnL impacts the value of JLP, as assets are borrowed and reflected in the price
Liquidations	Tracks positions liquidated and returned to the pool	Liquidated collateral is returned to the JLP pool, influencing the pool’s liquidity and asset availability
JLP Supply	Minting and burning activities affecting JLP supply and weight	The total supply of JLP directly impacts its price, calculated as AUM divided by the supply

JLP Delta Neutral with SOL

In addition to USDC-based Delta Neutral strategies, we also offer a JLP Delta Neutral strategy with SOL. Simply put, users can "stake" their SOL to earn real yield from JLP, while maintaining full exposure to SOL’s price. By participating in this strategy, users receive vSOL, an interest-bearing token representing their deposit, which accumulates JLP yields while underlying as SOL.

Mechanism

This strategy involves taking a long position on JLP, hedging against ETH and BTC price exposure through short positions, and simultaneously increasing the weight of the SOL long position. As a result, users maintain 100% price exposure to SOL while benefiting from JLP yields.

This strategy also opens the door for Delta Neutral strategies with other assets beyond SOL, ETH, and BTC, giving users greater flexibility to choose their desired asset exposure while accessing high-yield products like JLP.