Over the last few months, perpetual funding rates across majors have remained low or negative for extended periods. Under these conditions, pure basis trade strategies that rely on passive collateral generate little to no revenue and yield becomes unreliable. Times like these increase the importance of collateral that produces its own yield independently of market conditions.

Aegis adjusted its collateral selection in response to prolonged periods of weak basis returns. The objective was to introduce a yield-bearing collateral that can offset periods of negative funding rates while remaining positioned to capture upside once they become positive. This required moving beyond strategies that depend solely on BTC spot and perpetual spreads and toward assets with integrated yield.

Initial exploration focused on BTC wrapped assets and LSTs as potential additions to the YUSD collateral set. These assets did not meet execution requirements at scale. Liquidity across derivatives markets was insufficient to support sustained hedging and rebalancing. Limited depth constrained the ability to maintain delta neutrality under changing market conditions. As a result, these assets did not meet our strict standards and were not suitable to be added into our strategies.

The focus then shifted toward issuing a new stablecoin backed by JLP. JLP is the liquidity provider token for Jupiter Perps and represents a basket of BTC, ETH, SOL and USDC. All trader positions on the platform settle against JLP. Trading fees and liquidation proceeds accrue directly to the pool and increase the value of JLP over time. This creates a yield source derived from trading activity, which removes dependencies on funding rates being positive.

Learn more about JLP.

Holding JLP introduces exposure to the underlying prices of BTC, ETH and SOL. Changes in these asset prices directly affect JLP price. The yield profile of JLP is therefore paired with directional price risk. Aegis addresses this risk by maintaining offsetting derivative short positions against the non stablecoin components of JLP. These hedges are sized and adjusted based on real time JLP composition and Jupiter Perps trader positioning. The objective is to remove price exposure while retaining the yield generated by trading activity of the platform.

Within the Solana ecosystem, several teams operate JLP hedging strategies. Adoption and TAM remain constrained by current DeFi usage on Solana. Ethereum is home to substantially higher TVL and deeper liquidity across lending and yield derivatives markets. At the time of design, no JLP hedging strategy was accessible through EVM based issuance. This presented a clear opportunity to extend the strategy to Ethereum users.

Supporting this expansion required designing a new model and asset flow from the ground up. Users mint jUSD on Ethereum using USDC. The USDC is transferred through a controlled cross-chain path to Solana, where the protocol acquires JLP and executes the hedged strategy. Hedging, rebalancing and monitoring are handled continuously by the protocol. Users hold jUSD on Ethereum while strategy execution occurs on Solana.

This design allows EVM users to access the JLP hedging strategy while benefiting from Ethereum's deep liquidity and ecosystem. Low borrowing rates, liquidity depth and protocol integrations on Ethereum support broader deployment of jUSD and sjUSD. Strategy execution remains settled on Solana, while issuance and distribution occur on EVM.

jUSD and sjUSD extend the Aegis yield-bearing stablecoin framework beyond BTC funding driven strategies. Yield generated through the JLP hedging strategy is distributed to sjUSD holders through the staking mechanism. Upcoming integrations across DeFi will allow users to deploy jUSD and sjUSD as collateral, provide liquidity and trade the underlying sjUSD yield.

Aegis continues to expand its approach to yield bearing stablecoins through new collateral types, transparent execution and verifiable risk management.

Over the last few months, perpetual funding rates across majors have remained low or negative for extended periods. Under these conditions, pure basis trade strategies that rely on passive collateral generate little to no revenue and yield becomes unreliable. Times like these increase the importance of collateral that produces its own yield independently of market conditions.

Aegis adjusted its collateral selection in response to prolonged periods of weak basis returns. The objective was to introduce a yield-bearing collateral that can offset periods of negative funding rates while remaining positioned to capture upside once they become positive. This required moving beyond strategies that depend solely on BTC spot and perpetual spreads and toward assets with integrated yield.

Initial exploration focused on BTC wrapped assets and LSTs as potential additions to the YUSD collateral set. These assets did not meet execution requirements at scale. Liquidity across derivatives markets was insufficient to support sustained hedging and rebalancing. Limited depth constrained the ability to maintain delta neutrality under changing market conditions. As a result, these assets did not meet our strict standards and were not suitable to be added into our strategies.

The focus then shifted toward issuing a new stablecoin backed by JLP. JLP is the liquidity provider token for Jupiter Perps and represents a basket of BTC, ETH, SOL and USDC. All trader positions on the platform settle against JLP. Trading fees and liquidation proceeds accrue directly to the pool and increase the value of JLP over time. This creates a yield source derived from trading activity, which removes dependencies on funding rates being positive.

Learn more about JLP.

Holding JLP introduces exposure to the underlying prices of BTC, ETH and SOL. Changes in these asset prices directly affect JLP price. The yield profile of JLP is therefore paired with directional price risk. Aegis addresses this risk by maintaining offsetting derivative short positions against the non stablecoin components of JLP. These hedges are sized and adjusted based on real time JLP composition and Jupiter Perps trader positioning. The objective is to remove price exposure while retaining the yield generated by trading activity of the platform.

Within the Solana ecosystem, several teams operate JLP hedging strategies. Adoption and TAM remain constrained by current DeFi usage on Solana. Ethereum is home to substantially higher TVL and deeper liquidity across lending and yield derivatives markets. At the time of design, no JLP hedging strategy was accessible through EVM based issuance. This presented a clear opportunity to extend the strategy to Ethereum users.

Supporting this expansion required designing a new model and asset flow from the ground up. Users mint jUSD on Ethereum using USDC. The USDC is transferred through a controlled cross-chain path to Solana, where the protocol acquires JLP and executes the hedged strategy. Hedging, rebalancing and monitoring are handled continuously by the protocol. Users hold jUSD on Ethereum while strategy execution occurs on Solana.

This design allows EVM users to access the JLP hedging strategy while benefiting from Ethereum's deep liquidity and ecosystem. Low borrowing rates, liquidity depth and protocol integrations on Ethereum support broader deployment of jUSD and sjUSD. Strategy execution remains settled on Solana, while issuance and distribution occur on EVM.

jUSD and sjUSD extend the Aegis yield-bearing stablecoin framework beyond BTC funding driven strategies. Yield generated through the JLP hedging strategy is distributed to sjUSD holders through the staking mechanism. Upcoming integrations across DeFi will allow users to deploy jUSD and sjUSD as collateral, provide liquidity and trade the underlying sjUSD yield.

Aegis continues to expand its approach to yield bearing stablecoins through new collateral types, transparent execution and verifiable risk management.