Module 6.2｜What is JLP Delta Neutral Strategy

The goal of delta neutral strategies is to eliminate price volatility in order to generate stable returns, guaranteeing steady returns independent of market changes. In this context, the JLP token is used in the delta neutral strategy to assist traders to generate nearly low-risk profits and sustainable returns. JLP Delta neutral on the NX platform does this by utilizing well-known platforms such as Drift and Jupiter, which are renowned for their dependability and extensive auditing.

Background

Jupiter Perp typically allows JLP holders to profit from the Jupiter platform trading fees.

Like an index, JLP is basically a basket of cryptocurrency assets like SOL, ETH, and BTC. Even yet, JLP holders must suffer from the effects of market swings in underlying assets. JLP's price will drop instantly if the values of these three assets drop. Therefore the objective for the NX Delta Neutral Strategy is to hedge the exposed positions in order to obtain stable and sustainable returns.

Learn How to Achieve This

By using this strategy, traders can profit from Jupiter's trading fees and the funding rates of hedging contracts. To achieve this in the future, NX Finance employs dynamic leverage, continuous monitoring, and dynamic adjustments of hedging positions based on market conditions. By establishing short positions on Drift contracts, the price impact of each underlying asset can be eliminated, ensuring continuous and stable returns.