Programmatic fee‑share to LPs
LP tokens like JLP (Jupiter) or GLP‑style pools (GMX v2) accrue a predictable slice of taker/maker fees and borrow/funding flows, which can be delta‑neutralized (e.g., shorting perps against the LP’s risk basket) to isolate fee income as yield.
In Q3 2025, JLP has generated $256.42m in fees, where token holders of JLP received a net income of $32.05. With the 70% pass through mandate, holding JLP and neutralizing its price exposure enables systematic funds like Kvants to isolate inherent yield mechanisms, and produce a reliable alpha capture.
Alpha from fragmented microstructure = cross‑venue mispricings
Differences in oracle choices, latency, insurance‑fund rules, collateral sets, and risk caps cause recurring mark–index dislocations and funding skews across venues. Perpetual futures have no expiry by design; funding rates are used as the incentives mechanism to bring the perpetual futures mark price in line with the oracle price.
Trading volume and Open Interest
Across app‑chains and L2/L1s, 30‑day volumes and open interest continue to make new highs, expanding capacity for neutral strategies without materially increasing slippage or inventory risk. This is visible both in cross‑venue aggregates and in per‑venue dashboards (e.g., Hyperliquid, Jupiter, Drift).
On‑chain transparency enables verifiable NAV
With oracle‑priced open interest and fee flows on‑chain, funds can compute and publish NAV in real time, enabling trust‑minimized stablecoin designs that are fully collateralized and fully auditable.
Persistent funding/borrow asymmetries
Retail long‑bias, episodic airdrop/points farming, and risk budgets that vary by venue create durable spreads in funding rates ideal for delta‑neutral funding‑rate arbitrage and basis trades that monetize the spread while hedged.
