First Vault - Trading Strategy

Invest in Stablecoin Neutral Trading Strategy

Powered by Neutral trade, This leveraged JLP delta neutral (USDC) vault aims to earn trading fees, borrowing fees and liquidation fees from traders trading on Jupiter perp DEX, while removing any directional exposure from holding JLP. The strategy is monitored 24/7 systematically, dynamically leveraged based on predicted fees with minimum delta exposure.

Core optimization

• 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

By comparison, the JLP DN Strategy delivered a real yield of >70% APY for the first 3 months starting from October, primarily generated from trading fees, borrowing fees, and liquidation fees earned from traders engaging with Jupiter perps.

This strategy offers one of the best risk-adjusted returns in the market. It leverages well-established platforms like Drift and Jupiter, both of which are known for their thorough auditing and reliability.

Unlike other yield farming opportunities, which often involve risks like bad debt from lending, slashing risks from restaking protocols, and exposure to smart contract failures, liquidity issues, or impermanent loss, the JLP DN Strategy mitigates these risks, offering a more secure and reliable way to earn high returns.