Strategies: 6.66x Leverage for JLP Using USDC

What is JLP Leverage?

JLP (Jupiter Perpetuals LP) tokens provide yields through trading fees generated on Jupiter’s perpetual decentralized exchange (DEX). Vaultka V2 offers users the ability to leverage their JLP positions by borrowing USDC against their JLP deposits.

How to Achieve 6.66x Leverage

Vaultka V2 allows users to leverage JLP positions up to 6.66x. Here’s how it works:

1. Deposit Collateral: Begin by depositing $10,000 worth of JLP tokens.

2. Borrow USDC: Borrow up to $56,666 USDC (a 5.66x loan).

3. Total Position: With the borrowed funds, your total JLP position becomes $66,666, representing 6.66x leverage.

Interest Costs

• The borrowing rate for USDC is 11.5% APR (based on an 80% utilization rate).

• The net yield is calculated by multiplying the JLP APR by the leverage factor and subtracting the borrowing costs.

Example Calculation

Assuming the following rates:

• JLP APR: 50%

• Borrowing APR: 11.5%

The net leveraged APR is calculated as follows:

Net APR = (50% x 6.66) - (11.5% x 5.66) = 267%

This demonstrates the yield amplification possible by leveraging JLP, with a net APR of 267% after borrowing costs.

One-Click Execution

Vaultka V2 simplifies the process of leveraging JLP through one-click execution:

1. Navigate to the Leverage page.

2. Select “JLP Leverage” from the available options.

3. Input the deposit amount and confirm the transaction.

4. Vaultka will automate the borrowing, looping, and staking of the JLP tokens via flash loans.