🌟 Stable annualized 20% series 1-1｜Introduction section
Before officially discussing the strategy, let's clarify two core concepts👇
💡 1. Jupiter Exchange
Jupiter is a decentralized trading platform (DEX aggregator) on the Solana chain.
👉 Its function is like a 'flight comparison website', helping you automatically find the cheapest and most suitable trading paths on Solana.
👉 No matter which token you want to buy or sell, it will compare prices across multiple DEXs and liquidity pools → place orders, helping you save on trading costs and slippage.
💡 2. JLP (Jupiter Liquidity Provider)
JLP is a liquidity pool token launched by Jupiter.
👉 You can deposit stablecoins (USDC/USDT), BTC, ETH, SOL to provide liquidity;
👉 After depositing, you will receive JLP tokens, representing your share of the assets in the pool;
👉 In return, you can earn transaction fees + funding rates, just like putting money into a ‘trading market pool’ to earn interest.
⚡ JLP's yield = underlying asset price fluctuations + various fees (loan interest + transaction fees + leverage liquidation, etc.)
Our designed strategy is to hedge against asset price fluctuations, keeping only that relatively stable fee income✨.
🚀 Stable annualized 20% series 1-2 | Hardcore strategy
💰 Distribution of JLP's underlying assets:
SOL: 47%
ETH: 8%
BTC: 13%
USDC: 32%
To achieve more stable returns, we need to hedge against the price fluctuations of SOL/ETH/BTC👇
Operation steps (taking 1000U as an example)
1️⃣ Allocate funds on centralized exchanges (it is recommended to use a certain security):
👉 688U used to purchase JLP on Jupiter
👉 The remaining 312U to purchase BFUSD and enable combined margin mode
2️⃣ Set the leverage for BTC / SOL / ETH to 125x, 125x, 100x
⚠️ Note: This is not about opening high leverage to gamble on direction, but to release more BFUSD to earn interest
3️⃣ In fact, we only need to open:
SOL Short: 323.3U
ETH Short: 55U
BTC Short: 89.4U
👉 The nominal leverage ratio is only 1.5 times, and the risk is very low
✅ According to this configuration, our annualized return can reach 24.85%✨
👉 Friends who want to see risk analysis, don't forget to click the avatar in the upper left corner to follow me. The next article [1-3 Risk Section] will definitely be packed with valuable content!
⚠️ Stable annualized 20% series 1-3 | Risk Section
All high-yield strategies cannot do without risk management, and this strategy is no exception 👇
🔎 Three major risks of the strategy
1️⃣ Contract Risk
This is a risk that DeFi cannot completely avoid since it uses smart contracts.
👉 However, choosing a large platform can significantly reduce risks; Jupiter is the largest DEX on Solana and currently has high security.
2️⃣ JLP's underlying assets are arbitraged by traders
Assets in JLP will be lent out to traders; if traders make big profits in extreme market conditions, the JLP pool will incur some losses.
👉 However, this is a long-term neutral risk because there will also be big losses, canceling each other out.
✨ Overall, this is the highly favorable risk-return hedge strategy I have designed so far, sharing it with everyone
