🧲Flexible Earn
Flexible Earn
Real Earn, Healthy Returns!
What is the Flexible Earn?
JOJO has developed an excellent arbitrage scheme by utilizing the funding rate mechanism in perpetual contract trading.
At JOJO, we support the arbitrage of stablecoins such as USDC. Users will deposit stablecoins with a minimum deposit amount of 5 USDC and a maximum limit of 200,000 USDC. All users share the same funding pool and contract position. We aim to provide Base users with a more convenient and efficient financial product.
Advantages of JOJO Flexible Earn
Stability of Returns: JOJO's funding rate arbitrage products generate stable returns through the automated execution of trading strategies.
Convenience: Users only need to deposit funds into the JOJO platform to enjoy the automated funding rate arbitrage service without the need for complex calculations and operations.
Efficiency: By utilizing the differences in funding rates, JOJO can trade between perpetual contracts, futures markets, and spot markets, enabling efficient arbitrage operations.
High and sustainable APR: Aside from funding rate arbitrage profits in perpetual contract trading, there are also basis profits (the price difference between spot and futures).
Flexible Earn step-by-step guide
Step 1 Deposit USDC
Enter the amount you wish to use for Flexible Earn and click 'Deposit’.
Please be aware that your withdrawal process will take about 24 hours.
Step 2 You will get the earnUSDC and waiting for capital appreciation.
Step 3 Withdraw USDC and burn earnUSDC.
Enter the amount you want to withdraw for Flexible Earn and ‘Request Withdraw’.
After applying for a withdrawal, your earnUSDC will be locked. The system will perform the withdrawal operations mentioned in the above logic to withdraw USDC on your behalf. Please note that there will be a 24-hour time difference between when you initiate the withdrawal and when the USDC is credited to your account.
Why are the returns from funding rate arbitrage healthy and sustainable?
Whenever users trade perpetual contracts on any exchange, there is always a cycle of long and short parties paying funding rates to each other. This creates an opportunity for funding rate arbitrage. As trading activity increases and market conditions improve, the APR of funding rate arbitrage will likely rise.
Who is paying the APR of Flexible Earn?
On-chain users trading perpetual contracts.
What is the funding rate?
The funding rate is used to maintain price equilibrium in perpetual contract trading. It levies a fee on long or short traders based on the difference between the perpetual contract market and the spot price. This fee ensures that the price of perpetual contracts remains aligned with the spot index price. The funding rate is considered to be significant for two reasons:
Determine the market sentiment of long and short positions
Provide risk-free long-term arbitrage opportunities
For more details on the JOJO funding rate, please refer to this article: JOJO Funding Rate Mechanism.
How to earn airdrops via Flexible Earn?
Over 12 weeks, we're allocating airdrops weekly. Participants share this pool based on their points, calculated weekly. Trading 10 USDC earns 1 point, and maintaining an average margin of 2 USDC in your perpetual account, 1000x account, or bot account also earns 1 point.
When you deposit USDC into Flexible Earn, you receive an equivalent amount of earnUSDC as a deposit certificate, but you will not earn any airdrop points. However, you can use earnUSDC as collateral to borrow JUSD, which will be included in the airdrop calculations.
The Mechanism of JOJO's Flexible Earning
Users only need to execute a USDC deposit for deposits, and the system will automatically carry out funding rate arbitrage on their behalf.
For withdrawals, users only need to request a withdrawal, and the system will automatically pay the user after 24 hours.
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