Market-Making Strategy
Making Market-Making Accessible to Everyone
Traditional Problem: Market-making requires significant capital, technical expertise, and 24/7 monitoring - blocking most people from these profitable opportunities.
JVAULT Solution: Pool everyone's capital together and deploy professional market-making strategies that individuals could never access alone.
Strategy Overview
Your pooled USDC enables professional airdrop farming on centralized perpetual exchanges. We focus on pure market-making to accumulate platform points that convert into valuable airdrops.
1. Close 📊
- Exit all active positions
- Realize profits and losses
- Convert assets to USDC
2. Harvest 💰
- Calculate net performance
- Update vault NAV
- Process withdrawal requests
3. Rebalance 🔄
- Deploy 80% capital to new positions
- Maintain 20% USDC reserve
- Begin new trading week
Market-Making Approach
Core Principles
- Delta Neutral: Minimize directional price risk
- Spread Capture: Profit from bid-ask spreads
- Volume Focus: Target high-volume trading pairs
- Risk Management: Position sizing and stop-losses
Target Platforms
- Primary: lighter.xyz (current focus)
- Future: Hyperliquid, other perpetual platforms
- Strategy: Multi-vault approach (JVAULT-Lighter, JVAULT-Hyperliquid)
- Focus: Airdrop farming through consistent MM activity
Performance Drivers
| Factor | Impact | Notes |
|---|---|---|
| Market Volatility | 📈 Higher | More trading opportunities |
| Trading Volume | 📈 Higher | Better spread capture |
| Capital Efficiency | 📈 Higher | Optimized position sizing |
| Competition | 📉 Lower | Reduced spreads available |
Risk Controls
Position Limits
- Maximum 10% in any single pair
- Maximum 80% deployed at any time
- Reserve always maintained
Time Limits
- All positions closed by Sunday 06:50 UTC+7
- No overnight holds during settlement
- Fresh start each Monday
Technical Safeguards
- Automated stop-losses
- Real-time monitoring
- Emergency shutdown capability
Revenue Sources
Primary Revenue
- Airdrop Farming: Points accumulation on target platforms
- Trading Spreads: Profit from market-making activities
- Management Fees: 0.25% on deposits/withdrawals
Airdrop Distribution
- 70% to JVAULT holders (proportional to holdings)
- 30% to protocol (operational costs and development)
Return Expectations
Returns depend heavily on:
- Airdrop timing and size
- Platform point system changes
- Market-making profitability
- Competition on target platforms
Transparency
- Weekly Reports: Performance summary each Sunday
- On-Chain Data: All vault transactions public
- NAV History: Complete pricing history available
- Strategy Updates: Changes communicated to users
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