JLP and Neutral: Exploring Robust Yield Strategies in the crypto market

In the crypto market, finding quality assets is the key first step to profitability. Recently, JLP (Jupiter perpetual liquidity provider token) has attracted widespread attention due to its outstanding performance. Since its launch, JLP has achieved a threefold increase, with a maximum drawdown of only 30%, while its funding scale has exceeded 1 billion USD, demonstrating strong market capacity.

The earnings of JLP mainly come from two aspects: profits as the counterparty of contract traders, and obtaining 75% of the trading fees. This allows JLP's annualized yield to remain above 30% for a long time, and sometimes even exceed 50%. JLP itself is composed of 47% SOL, 8% ETH, 13% BTC, and 32% USDC, maintaining exposure to mainstream encryption assets.

However, JLP also faces potential risks, primarily including short-term profits for contract traders in extreme market conditions and long-term price weakness of crypto assets. To mitigate these risks, some institutional-level strategies have emerged.

An institutional-level on-chain strategy hedge fund has proposed an innovative solution: Users deposit USDC, exchange it for JLP, then use JLP as collateral in a lending protocol to borrow USDC and convert it back to JLP, finally shorting the corresponding proportion of crypto assets through perpetual contracts to achieve risk neutrality. This strategy has currently attracted a total locked value of over $12 million, with an annualized return exceeding 15% and a maximum drawdown controlled within 2%.

Although individual investors can also attempt to implement similar strategies, institutional-level hedge funds have a clear advantage in risk management. They have 24-hour monitoring teams, extensive risk handling experience, and contingency plans, enabling them to better cope with various challenges in complex market environments.

It is worth noting that there are multiple on-chain hedge funds in the market, and investors should carefully choose based on their own risk tolerance and investment goals. Some projects also offer point systems to provide users with additional potential profit opportunities.

With the continuous development of the crypto market, innovative strategies that combine traditional financial risk control concepts are attracting more and more attention. They provide investors with a new option to effectively manage risks while maintaining relatively stable returns. However, investors still need to carefully assess the risk and return characteristics of each project to make informed investment decisions.