USDC Alpha Stable Vault

Strategy Overview

The USDC Alpha Conservative Vault is designed to deliver stable, risk-adjusted returns through a near-delta-neutral framework, utilizing dynamic leverage and a conservative momentum overlay on the Jupiter Liquidity Provider (JLP) token. Deposited USDC is converted to JLP via Jupiter Swap and deployed as collateral on the Drift perpetual futures platform to establish hedged short positions in SOL, ETH, and BTC. This approach neutralizes most price exposure while optimizing capital efficiency. A 2% hedge adjustment allows minor deviations based on momentum signals, capturing additional alpha with minimal volatility.

A sophisticated Keeper system continuously tracks trader behavior and order flow on the Jupiter perpetual platform, ensuring JLP risk asset exposures align with market dynamics. Hedging on Drift perpetuals leverages high funding fee accruals, low transaction costs, and elevated JLP collateral valuation, enhancing return efficiency by reducing slippage and boosting yield capture. A conservative momentum overlay adjusts the hedge ratio by up to 2% net exposure, enabling small directional bets on ETH, BTC, and SOL to enhance yields while prioritizing portfolio stability.

Key Features

• Near-Delta-Neutral Core with Conservative Adjustments: Maintains market neutrality with 2% momentum-driven shifts for balanced alpha generation.

• Automated Keeper Rebalancing: Utilizes real-time automation to adjust exposures, minimizing drawdowns in volatile conditions.

• Yield Enhancement: Combines JLP liquidity fees, perpetual funding rates, and subtle momentum trades for consistent returns.

• Risk Profile: Low to medium, ideal for investors seeking steady performance with limited directional risk.

• Leverage Efficiency: Employs Drift’s infrastructure to balance neutralization with controlled alpha, ensuring stable growth.

Withdrawal Terms & Conditions

Redemption Period: Deposits are subject to a 1-day redemption period. Withdrawal requests can be initiated anytime, but funds are accessible only after this period. Profits accrued during the redemption window are forfeited if the request is cancelled.