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JLP Overview

Jupiter Liquidity Providers (JLPs) play a crucial role in the trading ecosystem by supplying the necessary liquidity for perpetual traders. Liquidity providers (LPs) ensure there is sufficient liquidity, allowing traders to test their perpetual trading strategies. As a result, Jupiter can offer its trading service without needing to hold huge amounts of liquidity, and LPs are rewarded with the majority of the fees.

Becoming a Liquidity Provider (LP):​

  • Contribute assets or tokens to the Jupiter Liquidity Provider Pool (JLP Pool).
  • JLP tokens represent your share of the pool.
  • Any asset traded on JUP can be used to buy into JLP.
  • There are fees associated with buying into the JLP pool (see Target Ratio and Fees).
  • More on how to get the token in How To Get JLP.

Rewards and Earnings:​

  • 75% of all perpetual trading fees are deposited into the JLP pool to be distributed among JLP holders (reflected as an increase in the JLP token price).
  • Forms an Annual Percentage Rate (APR).
  • Higher trading volume generally leads to higher earnings for JLP holders.
  • More on how it works in How JLP Works.

Advantages of the JLP System:​

  • No need to actively "stake" tokens or "harvest" yields.
  • APR earnings are embedded within each JLP token and accumulate automatically.
  • The JLP token is an SPL token, making it easily transferable and tradable like other SPL tokens within the Solana ecosystem.
  • AMM pools can be established for trading JLP tokens.

Overall, the JLP system offers a user-friendly method for participants to earn passive income while contributing to the liquidity and stability of the trading environment.

Note: JLP is a liquidity token for the Jupiter Perpetuals platform, and JUP is the governance token of the JUP DAO.

The best way to purchase or exit JLP is always via Jupiter Swap.​

The JLP UI​

jlp

  1. Earn Tab: Where users can participate by depositing into the JLP Pool to earn passive fees generated from all perpetual trading activities.

  2. APY: This measure shows the current trajectory of yield from holding the JLP token.

  3. Trade: Here a user can Trade, Buy or Sell JLP.

  4. Total Value Locked (TVL): TVL represents the total value of pool assets at their current token prices.

  5. Token Selector: The user can choose the token they would like to trade or receive.

  6. Token(List): The list of tokens currently held in the JLP pool.

  7. Pool Size: The current size of each token's pool. Traders' collateral assets are included in the pool.

  8. Current / Target Weightage: A comparison of the current weightage to the target weightage.

  9. Utilization: A measure of how the pool's assets are currently being used.

  10. Estimations and Fees: The user is shown the estimated fee for trading the token they pick and the estimated JLP to be received.

  11. JLP Price & Total Supply: Here, you can find the current JLP Price and Total Supply displayed. The Price is obtained by dividing TVL by Total Supply.