Crypto Profits - Passive or Active - What Do You Do ?

With all the comments from people being ripped off in crypto I thought I
would share something.

You can passively make money in crypto by becoming a liquidity provider
for an internationally known Distributed Exchange

I am talking about Jupiter. The liquidity coin is JLP

https://station.jup.ag/guides/jlp/JLP

Their current yearly interest is 63.5% . Better than your savings account

https://jup.ag/perps-earn

JLP Pool​

The Jupiter Liquidity Provider (JLP) Pool is a liquidity pool where it acts as a counterparty to traders — when traders seek to open leverage positions, they borrow tokens from the pool.

The JLP token is the liquidity provider token where it's value is derived from:

• An index fund of SOL, ETH, WBTC, USDC, USDT.
• Trader's profit and loss
• 75% of the generated fees from opening and closing fees, price impact, borrowing fees, and trading fees of the pool

The APY, denominated in USD, is calculated based on 75% of fees generated from perps trading activities which does not include assets appreciation and traders PnL. The generated fees are distributed back to holders by redepositing the fees into the pool hourly.

Other folks think its a good idea

Total Value Locked

$1,799,676,019.23

Do you know of anything better ?

Sincerely,

The Eye

With a +60% yearly interest, it’s leagues better than what you’d get from your savings account. The JLP pool essentially acts as a counterparty to traders borrowing tokens to open leveraged positions. As a liquidity provider, you earn from 75% of the fees generated by the platform, think opening/closing fees, price impacts, and borrowing fees. All these fees get redistributed to LPs hourly by reinvesting them into the pool.

What makes JLP even better is its diversified index fund backing, which includes SOL, ETH, WBTC, USDC, and USDT. It’s like you’re passively managing a crypto hedge fund while benefiting from trading activities. Plus, the platform has serious traction with nearly $2 billion in total value locked, meaning you’re not betting on some sketchy, low-traffic protocol.

But is there anything better? That depends on your risk tolerance and how much you trust the protocol. Alternatives like staking high-yield tokens, farming stablecoins, or exploring other Defi protocols like Curve, Aave, or even GMX might suit different goals, but many don’t offer such high APYs without additional risks. Always consider the risks of impermanent loss, price volatility, or smart contract vulnerabilities. If JLP aligns with your goals, it’s a great option to explore.

Unfortunately it's already over the limit. Damn

Looking at the chart from the start 2024 it has only gone up so it is def something worth looking into.
Cheers for the info.

Proxy Cake said:

Unfortunately it's already over the limit. Damn

Click to expand...

Means closed for new investors ?

theeyeinside said:

With all the comments from people being ripped off in crypto I thought I
would share something.

You can passively make money in crypto by becoming a liquidity provider
for an internationally known Distributed Exchange

I am talking about Jupiter. The liquidity coin is JLP

https://station.jup.ag/guides/jlp/JLP

Their current yearly interest is 63.5% . Better than your savings account

https://jup.ag/perps-earn

JLP Pool​

The Jupiter Liquidity Provider (JLP) Pool is a liquidity pool where it acts as a counterparty to traders — when traders seek to open leverage positions, they borrow tokens from the pool.

The JLP token is the liquidity provider token where it's value is derived from:

• An index fund of SOL, ETH, WBTC, USDC, USDT.
• Trader's profit and loss
• 75% of the generated fees from opening and closing fees, price impact, borrowing fees, and trading fees of the pool

The APY, denominated in USD, is calculated based on 75% of fees generated from perps trading activities which does not include assets appreciation and traders PnL. The generated fees are distributed back to holders by redepositing the fees into the pool hourly.

Other folks think its a good idea

Total Value Locked

$1,799,676,019.23

Do you know of anything better ?

Sincerely,

The Eye

Click to expand...

Yes there are some pairs that give this ROI and better. However, you have to look hard to find them.

This is called liquidity farming and there’s a risk to it as well, because certain pools require you to lock in the token for a set amount of time - depending on the $ price movements of the token the APR might turn out significantly lower than what you’ll net in the end.

Obviously if token pumps it’s a double win - but the point is there’s a risk.

On a sidenote, certain pools also allow for farming USDC/USDT, though the APRs are much lower.