Jupiter's Liquidity Pool Explained
This post breaks down the Jupiter Liquidity Provider (JLP) Pool – a DeFi primitive that's generated nearly $1 billion in fees over the past 12 months and generating 35%+ yields. It is a type of Perpetual Demand Lending Pool (PDLP) that improves upon traditional LP models by featuring bounded risk profiles and easier hedging capabilities, allowing both liquidity providers and perpetual traders to be simultaneously profitable.