JLP and Neutral: Innovative Crypto Assets Investment Strategies

In the Crypto Assets market, finding quality assets is key to achieving returns. JLP (Jupiter Perpetual Liquidity Provider Token), as an outstanding asset, has attracted the attention of many investors. This token represents the rights of Jupiter perpetual contract liquidity providers, and its price has increased by about 3 times over the past year, with a maximum drawdown of only 30%, demonstrating strong investment potential.

The earnings of JLP mainly come from two aspects: the profits as a counterparty in contract trading, and the 75% sharing of the fees from perpetual contract trading. This allows JLP's annualized return rate to remain above 30% for a long time, and sometimes even exceed 50%. JLP consists of 47% SOL, 8% ETH, 13% BTC, and 32% USDC, providing a certain degree of stability while maintaining exposure to crypto assets.

However, JLP also faces potential risks, primarily including short-term profits for contract traders under extreme market conditions and long-term price declines of Crypto Assets. In response to these risks, some investment strategies have emerged. Among them, Neutral offers an innovative hedging solution.

Neutral is an institutional-grade on-chain strategy hedge fund within the Solana ecosystem. Its core strategy includes exchanging USDC for JLP, then collateralizing JLP in a lending protocol to borrow USDC, and exchanging it back for JLP. Simultaneously, it short-sells a corresponding proportion of crypto assets through perpetual contracts to achieve risk neutrality. The total value locked (TVL) of this strategy has exceeded 12 million USD, with an annualized return rate of over 15%, and the maximum drawdown controlled within 2%.

For ordinary investors, executing such complex strategies presents numerous challenges. Individual investors may find it difficult to effectively manage the risks of margin calls from short selling hedges, abnormal funding rate risks, and the long-term interest rate inversion risks brought by borrowing leverage. In contrast, institutional-level hedge funds have 24-hour monitoring teams, extensive risk management experience, and contingency plans, allowing them to better control risks.

The Neutral project not only offers the JLP neutral strategy but also includes multiple yield strategies such as Hyperliquid fee arbitrage. It is worth noting that not all strategies are neutral risk, and investors need to carefully study the characteristics of each strategy. In addition, Neutral has also launched a points system to provide users with potential additional income opportunities.

As a winning project of the Solana Radar hackathon, Neutral has developed into an emerging protocol with a total locked value of nearly 36 million USD, creating nearly 2.5 million USD in profits for users. Its founders come from Goldman Sachs and top global hedge funds, possessing extensive experience in quantitative trading. Recently, Neutral also secured 2 million USD in funding, further consolidating its position in the Crypto Assets investment field.

For investors seeking stable returns, innovative strategies like Neutral provide a new option for balancing risk and reward. However, before participating in any investment strategy, investors should fully understand the associated risks and make informed decisions based on their risk tolerance.