Original Source: Vectis Finance

Preface

On August 20, HyperliquidFR released data showing that Hyperliquid, with an average annual revenue of $102.4 million per employee, became the company with the highest per capita revenue globally. This high profitability stems from the high-frequency trading of trillions of users. The key to attracting these users lies not only in the platform's extreme performance but also in its consistently excellent funding rates.

As an amplifier of DeFi yields, Vectis Finance seized this opportunity by launching the JLP HyperLoop Vault: by establishing hedging positions on Hyperliquid, it can lock in price risks while steadily capturing high funding fees. Combined with Jupiter's newly launched JLP Loans (with borrowing rates as low as 5%), it achieves low-cost borrowing and leveraged loops to acquire more JLP.

This combination truly delivers a dual-driven strategy of "low-cost leveraged yields + high funding fee yields," amplifying JLP returns across multiple layers—a classic case of "killing multiple birds with one stone."

The Origin and Development of JLP

What is JLP? JLP is the core liquidity token of Jupiter (Solana's largest liquidity and trading aggregation platform). As one of the most representative assets in DeFi this year, JLP has become the preferred entry point for large-scale on-chain yields. With a TVL of $1.85 billion, a 3x value growth within a year, and an astonishing current annualized return of 29.71%, it showcases a unique blend of stability and growth.

JLP supports traders by providing liquidity for opening positions and loans, acting as a market counterparty. Its returns stem from three pillars:

· High-fee sharing: Captures 75% of open/close fees, price impact fees, loan fees, and trading fees, forming a stable cash flow.

· Diversified asset appreciation: An index fund composed of SOL, ETH, WBTC, USDC, and USDT, balancing volatility resistance and growth potential.

· Trader P&L capture: Benefits from market fluctuations as a counterparty.

Unlike governance tokens or speculative assets reliant on market sentiment, JLP's value is not built on air but steadily supported by real trading revenue and asset appreciation. Many arbitrageurs use looped borrowing to amplify returns on JLP tokens.

Despite this, JLP experienced a maximum drawdown of 30% in March-April 2025, raising market concerns—primarily due to SOL's weak performance. With effective hedging mechanisms to mitigate price volatility, JLP could become a high-quality, low-risk yield strategy.

Vectis' Innovative Strategy: Killing Multiple Birds with One Stone, Amplifying JLP Yields

In November 2024, Vectis Finance launched the innovative JLP Navigator Vault strategy, deployed on Solana's perpetual exchange Drift. This strategy focuses on hedging price volatility while efficiently amplifying JLP yields. Its core consists of two pillars:

· Precise volatility hedging (Hedging): Effectively avoids price drawdown risks in the asset pool and enhances returns in positive funding rate environments.

· Low-leverage yield amplification (Leverage): Uses 2-3x looped borrowing to increase JLP holdings, amplifying fee and dividend income.

With 2-3x JLP value amplification and 2-3x funding fee enhancement, the Navigator strategy builds a robust yield moat. According to Vectis' official data, the strategy performs exceptionally: a 30-day APR of ~30% and a Sharpe ratio of 5.86.

Vectis Finance is an independent DeFi protocol built on Solana, transforming market volatility into investment opportunities. The team pioneered the innovative JLP yield-amplifying vault strategy, pushing TVL to $30 million at its peak. Expanding further into funding rate arbitrage and AI-driven trading strategies, it demonstrates high adaptability across market conditions, earning its reputation as a leader in "on-chain asset management."

HyperLoop Vault: The Next Evolution of JLP Yield Amplification

In August 2025, Vectis Finance announced the launch of the JLP HyperLoop Vault strategy. This strategy iterates on JLP Navigator, switching the hedging platform from Drift to Hyperliquid, delivering a more efficient yield-amplification solution. The specifics:

1. Low-Cost Leveraged Yields

Users deposit USDC into the Vectis Vault, which is first used to purchase JLP on Jupiter. The vault then borrows more USDC via JLP Loans to reinvest in JLP, creating a leveraged loop. This establishes a low-leverage position on a yield-generating LP token, effectively amplifying returns from trading fees and Jupiter's ecosystem incentives.

JLP Loans, Jupiter's new lending product, allows JLP holders to borrow USDC at rates as low as 5%—less than half the cost of other platforms.

Jupiter's JLP Loans page shows current borrowing rates at ~5.31%, less than half of Drift's average rate of ~10.39% from March 12 to July 25.

2. High Funding Fee Yields

To hedge price volatility, the vault maintains delta neutrality: Vectis opens short interest on Hyperliquid for SOL, ETH, and BTC, matching JLP's underlying assets. These positions are monitored and dynamically adjusted by automated systems.

When Hyperliquid's funding rates are positive, these short positions generate additional returns, further boosting the vault's overall performance. Compared to Drift, migrating to Hyperliquid increased funding fee-driven annualized returns by +158.63%.

Additionally, Hyperliquid's hedging execution prioritizes limit orders where possible, minimizing slippage and rebalancing costs—especially during high volatility.

3. Security & Infrastructure

User funds in the JLP HyperLoop Vault are custodied by Cobo, a leading institutional custodian providing a secure environment for asset transfers and wallet interactions. Unlike many DeFi vaults relying on multi-sig or internal custody, HyperLoop integrates Cobo to mitigate key management risks and uphold industry-leading security practices.

Execution-wise, all smart contract interactions occur via verified platforms like Jupiter and Hyperliquid. Vectis' proprietary automation infrastructure handles rebalancing, hedging, and position management, reducing human error and significantly improving execution speed.

During the vault's launch, Vectis also introduced the Boost Station campaign, offering additional USDC rewards for users earning JLP yields.

 

Conclusion

Vectis has caught the JLP express, leveraging the dual engines of low-cost leverage and high funding rates to rapidly amplify profits, outpacing the market. This is just the tip of the iceberg.

In the DeFi world, Vectis embodies its philosophy: grounded in real profits, secured by safety, and driven by rapid iteration—transforming complex strategies into simple, stable growth paths.

Moving forward, as a next-gen leader in on-chain asset management, Vectis will continue exploring the most promising alpha opportunities, enabling large-scale capital to access DeFi growth curves that are robust, sustainable, and explosive.

This article is a submission and does not represent BlockBeats' views.