The JLP BTC Neutral strategy generates BTC-denominated yield from trader activity in the Jupiter Liquidity Provider (JLP) pool, while neutralizing non-BTC exposure through perpetual hedging positions on centralized exchanges.

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Key metrics

  • Expected return: 5%-10% BTC-denominated APY
  • Launch: December 2024
  • Strategy capacity: Designed for $1B+ at current allocation
  • Risk profile: Market-neutral with delta hedging
  • Primary yield source: Jupiter JLP pool fee participation (75% of pool fees)
  • Execution platform: Jupiter (Solana) + Binance (hedging)
  • Custody: Ceffu (institutional custody)
Income sources The JLP pool distributes 75% of trading fees to liquidity providers. These include opening/closing fees, borrowing fees, trading fees, and liquidations. BTC denomination Perpetual futures hedging on Binance offsets SOL and ETH exposure in the pool while keeping the strategy effectively 1× long BTC. Ecosystem The strategy is built on Jupiter, Solana’s main perpetual DEX, which runs with deep liquidity and consistent fee flows.

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Strategy Implementation

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Capital Deployment

  1. BTC receipt: Capital flows into Ceffu institutional custody in BTC/WBTC.
  2. Asset allocation:
    • 70% → Jupiter JLP Pool (mix of SOL, ETH, WBTC, USDC, USDT)
    • 30% → Binance collateral (held with Ceffu for hedging operations)
JLP BTC Neutral Strategy Flow

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Delta-neutral positioning

  • Short SOL perpetuals to eliminate SOL exposure
  • Short ETH perpetuals to eliminate ETH exposure
  • Leveraged long BTC to maintain effective 1× BTC exposure
  • Positions rebalanced regularly to track JLP composition changes

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Yield generation

  • Primary yield source: JLP pool fees (75% of trading fees):
    • Opening/closing
    • Borrowing
    • Protocol fees
    • Liquidations
  • Rebalancing alpha: Additional yield from dynamic hedge adjustments
  • Funding rate management: Costs typically in the -1% to -4% range, occasionally positive

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Risk Management

  • Automated rebalancing systems maintain delta-neutral exposure
  • 70% fund in a smart contract
  • Approximately, 30% collateral in Ceffu and 24hr settlement insures only collateral required for hedging transferred to Binance

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Historical Performance

  • Private Beta Performance: 5%-10% BTC-denominated APY (June 2025)
  • Market conditions: Performance typically improves during volatile periods as trading fees increase
Historical Performance

APY and performance figures are based on historical data and are provided for informational purposes only.

Real-time share price and strategy metrics are available at insights.structured.money.

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Strategy Advantages

Market-NeutralDelta-hedged structure preserving BTC denomination.
Automated RebalancingHedge positions adjust to reflect pool composition and trader flows.
Volatility CaptureBenefits from higher trading activity during market swings.
Sustainable Yield SourceDerived from trading flows and protocol fees, not emissions.
Liquidation BenefitsNine-digit US Dollar values can be liquidated without moving the market.

Risk & Controls

For a comprehensive analysis of all risk factors and control mechanisms, see our detailed Risk Management Framework.