What is Jupiter Perps LP (JLP)?

Deep Dive

1. Liquidity Engine for Perpetuals

JLP serves as the liquidity pool for Jupiter Perps, Solana’s leading perpetual futures platform. Traders borrow assets from the pool to open leveraged positions, while liquidity providers earn 75% of fees from trades, price impacts, and borrowing costs (Jupiter Docs). This creates a self-sustaining cycle where higher trading volume directly boosts yields for JLP holders.

2. Diversified Collateral Structure

JLP’s value derives from an index-like basket:
- 40% SOL (natively staked for ~7% yield).
- ETH, WBTC, USDC for stability and cross-chain exposure.
This mix reduces volatility compared to single-asset pools while capturing upside from multiple markets.

3. Expanding Utility in DeFi

Beyond perpetuals, JLP integrates across Jupiter’s ecosystem:
- JLP Loans: Overcollateralized borrowing of USDC, using JLP as collateral (Jupiter Tweet).
- Staking: Idle SOL in the pool is staked to compound yields.
- Revenue Sharing: 50% of protocol fees from Jupiter Lend, Swap, and Perps are distributed to holders.

Conclusion

JLP is Solana’s cornerstone liquidity instrument, merging leveraged trading infrastructure with composable yield strategies. Its role as both a risk-bearing asset and a yield generator positions it uniquely in decentralized finance. How might JLP’s design influence broader adoption of multi-chain liquidity pools?