JLP Yield Trading

RateX allows users to trade yield via YT-JLP. In simple terms, it creates a liquidity pool for JLP yield trading, where liquidity providers deposit JLP into the pool. Based on this, they receive rebasing ST-JLP, which grows at the official APY rate, keeping its value aligned with JLP.

ST-JLP is a token defined by RateX that grows based on the APY data published by Jupiter; it does not represent assets actually held by users. Therefore, in the AMM, YT-JLP is essentially priced based on ST-JLP. To simplify things for users, RateX maintains an exchange rate between ST-JLP and JLP based on the official APY data. As a result, for our users, the price of YT-JLP is still denominated in JLP.

Additionally, liquidity providers can mint YT-JLP. RateX builds a YT/ST AMM pool for users. To leverage long YT, traders deposit margin (JLP), and the protocol creates ST-JLP for them to buy YT-JLP in the AMM. Conversely, to short YT, traders deposit JLP, and the protocol mints YT-JLP for them to buy ST-JLP. Currently, RateX offers up to 10x leverage on YT-JLP trading.