AIBTC.JUP (Pilot Phase)
Last updated
Last updated
AIBTC.JUP is a liquid staking token (LST) that acts as a gateway to Solana’s yield ecosystem for Bitcoin holders. This pilot product marks a significant step in integrating Solana's dynamic DeFi landscape into our Staking Abstraction Layer (SAL), unlocking opportunities for Bitcoin holders to earn BTC-denominated returns through a CeDeFi strategy.
Use Case: Earn BTC-denominated yields by participating in Solana’s thriving DeFi ecosystem.
Type: Yield-bearing liquid staking token.
Yield: Expected yields of approximately 20% in BTC, based on participation in the Jupiter Liquidity Provider (JLP) Pool.
CommentWhy Solana? Why Jupiter?
Solana: Known for its low fees and high-speed transactions, Solana is an ideal platform for yield generation.
Jupiter Exchange: As one of Solana’s leading decentralized perpetual exchanges, Jupiter has processed over $100 billion in trading volume. Currently, the JLP Pool offers an attractive APY of 28%, with AI Protocol’s hedging strategies projecting yields around 20% in BTC. This strategy provides stable, risk-adjusted returns for Bitcoin holders.
How AIBTC.JUP Generates Yield
AIBTC.JUP generates yield by actively participating in the JLP Pool, where liquidity providers earn fees from trading activities. By employing hedging strategies on centralized exchanges, AI Protocol ensures that returns stem primarily from trading fees, reducing exposure to market volatility. This approach offers Bitcoin holders a unique opportunity to earn stable yields in BTC, diverging from more speculative yield-bearing strategies.
Proven Strategy Expansion
AI Protocol has successfully implemented a similar CeDeFi strategy on GMX (Arbitrum) since August 2023, achieving consistent returns of 9.5%. With AIBTC.JUP, we are now extending this model to the Solana ecosystem, broadening yield opportunities for Bitcoin holders.
