Revenue Explanation

Jupiter Liquidity Provider (JLP)

Role in Jupiter Perpetuals

JLP pools play a crucial role in Jupiter Perpetuals as the counterparty to traders. When traders seek to open leveraged positions, they borrow tokens from the pool. In return, the JLP pool earns fees from these leveraged trading activities, including borrowing fees and swap fees.

Benefits for JLP Holders

As a JLP holder, you receive 75% of the fees generated by the perpetual exchange. These earnings are directly reinvested into JLP, increasing its price and facilitating continuous compounding of returns.

Sources of JLP Token Value

1. Total value of SOL, ETH, WBTC, USDC, and USDT in the pool

2. Profits and losses of traders

3. 75% of fees generated from:

   • Pool opening fees

   • Closing fees

   • Price impact fees

   • Borrowing fees

   • Trading fees

HedgePlus: Enhanced JLP Strategy

The Challenge with JLP

While JLP benefits from Jupiter Perpetuals trading fees, it faces exposure to volatile assets. The utilization rate of unstable assets like SOL, ETH, and WBTC in the pool is not 100% and often remains below 50%. This results in significant exposure to these volatile assets, causing JLP prices to fluctuate with asset price movements.

HedgePlus Solution

HedgePlus builds upon JLP holdings with an advanced risk management strategy:

1. Real-time Analysis: Continuously monitors:

   • Asset weightings in the JLP pool

   • Utilization rates

   • Size of traders' long and short positions

2. Dynamic Hedging: Based on the analysis, HedgePlus:

   • Establishes corresponding short positions to hedge against downward market movements

   • Stabilizes returns from Jupiter Perpetuals trading fees

3. Quantitative Model: Employs a sophisticated model to:

   • Dynamically adjust long and short position ratios

   • Maximize market opportunities while effectively mitigating risks

   • Enhance returns for HedgePlus holders during bullish markets

Unique Value Proposition

This distinctive investment approach enables HedgePlus to:

1. Control risks for investors

2. Deliver higher, more stable returns

3. Capture upside potential in rising markets

HedgePlus Total Value

The total value of HedgePlus comprises:

1. Total value of held JLP tokens

2. Total value of trading accounts