JLP Delta Neutral Vault
Explanation of the JLP Delta Neutral (DN) Strategy
The JLP Delta Neutral (DN) Strategy is a cutting-edge, high-yield solution designed to deliver consistent, stable returns by fully hedging market exposure using advanced quantitative and systematic techniques. What sets this strategy apart is its ability to generate steady returns by continuously collecting fees from Jupiter perpetual contracts (perps) every hour.
Here’s why it outshines traditional stablecoin yield options:
- Lending Yields on Aave (USDC): Typically, 3–4% APY
- Ethena (sUSDe): ~4.5% APY, doing funding rate arbitrage on BTC and ETH on multiple exchanges
- Kamino JLP Market (USDC): Offers around 7.5% APY, with the risks of bad debt if liquidations are not performed quick enough
- Other Yield Vaults : Yields range from 3–10% APY, but much of this is artificially boosted by reward tokens, or some are even losing money
In comparison, the JLP DN Strategy delivers an impressive real yield of 30% APY without leverage (In practice we are using 1.5x), primarily generated from trading fees, borrowing fees, and liquidation fees earned from traders engaging with Jupiter perps.
Our quants have optimized trading in several areas, including perfectly hedging JLP’s delta, fine-tuning strategy entries and exits, and collecting funding fees from shorting assets in the JLP index. Afterward, we leveraged it up to 1.5x to enhance the fees.
By leveraging established platforms like Drift and Jupiter, both of which are known for their rigorous auditing and reliability, the JLP DN Strategy stands out from traditional yield farming options.
Unlike other opportunities that carry risks such as bad debt from lending, slashing risks from restaking protocols, or exposure to liquidity issues, impermanent loss, and smart contract vulnerabilities, the JLP DN Strategy actively mitigates these risks, providing a secure and dependable way to achieve high returns.
Statistics 📊
Let’s look at the numbers (No leverage)
- Average Daily Return: 0.09%
- Average Daily Volatility: 0.48%
- Annualized Return: 37.28%
- Annualized Volatility: 9.16%
- Max Drawdown: -1.13%
- Sharpe Ratio: 3.85
- Sortino Ratio: 5.91
- Calmar Ratio: 32.93
Performance and management fees
JLP Delta Neutral Vault:
- 25% performance fee on profits generated by our strategy.
Fees are applied either monthly or at the time of withdrawal from the vault.
Lock Up Period & Withdrawals
Deposited funds are subject to a 1-day soft lock period. Due to the nature of the strategy, manual adjustments may be required to facilitate withdrawals in an orderly manner.
Withdrawal requests may be submitted at any time. Funds will be available for withdrawal after the soft lock period ends.
Audit
Vaults are working via the Drift SDK, which is why if you are interested in the topic of audits, you can follow the link below:
https://docs.drift.trade/security/audits
Your funds are safe with us.
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At the core of our system, you remain in control of your assets.
Non-custodial means that only you hold the keys. We don’t take custody, we just execute trades on your behalf, ensuring complete transparency. With no third parties involved, our approach is not only cost-effective but also cuts out unnecessary middlemen, giving you the best value.
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