$JLP: Jupiter’s Juicy Yield
Solana is more than just memecoins. The ecosystem continues to produce great new products, and recently launched products continue to prove themselves. Today, we look at one of those - $JLP.
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TLDR
- Solana currently has a reputation for being the home of memecoin madness, but there is much more on offer. Solana DeFi is producing great DeFi products.
- Jupiter, Solana’s leading DEX aggregator, launched a perp product at the end of last year. The Jupiter Liquidity Provider (JLP) pool allows users to provide the liquidity utilized by Jupiter’s perp traders, essentially meaning LPs countertrade perp traders.
- $JLP represents a liquidity provider position in the JLP pool. $JLP’s value is derived from (i) an index of SOL, ETH, WBTC, USDC, USDT, (ii) perp trader PnL, and (iii) 75% of generated fees.
- The status quo of high trading volume and an appreciating token price amidst high double digit APY is likely not sustainable, while there are also risks to holding $JLP.
- Jupiter and $JLP has delivered so far, and adds to a slew of reasons that Solana DeFi continues to see such success.
