Jupiter Perps LP JLPPrice $ 3.74

JLP, or the Liquidity Provider token, represents a meticulously constructed index of assets designed for swaps and leverage trading. These tokens can be created using any index asset and later redeemed for any index asset.

Liquidity providers serve a crucial role as they act as counterparty to traders. When traders seek to open leverage positions, they borrow tokens from the pool. Liquidity providers, in return, earn fees from these leverage trading activities, along with borrowing fees and earnings from swaps. As a JLP holder, you receive 70% of the fees generated by the trading exchange. This amount is directly reinvested into the JLP, increasing the price of JLP, facilitating continuous compounding of yield and earnings. The exchange generates fees and yield in three ways:

• Opening and Closing Fees of Positions

• Borrowing Fees of Positions

• Trading Fees of the Pool