🧲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 (will support DAI, USDT, BUSD, and more very soon). Users will be locked for seven days when they deposit stablecoins, with a minimum deposit amount of 5 USDC and no maximum limit. All users share the same funding pool and contract position. We aim to provide Arbitrum 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 APY: 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 select 'Approve USDC.’

Please be aware that your withdrawal process will take about 24 hours.

Step 2 You will get the shares and waiting for capital appreciation.

Step 3 You will get equivalent JUSD automatically for funding rate arbitrage.

Step 4 Withdraw USDC and burn shares.

Enter the amount you want to withdraw for Flexible Earn and select 'Approve JUSD.’

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 APY of funding rate arbitrage will likely rise.

Why does this system automatically exchange the USDC I deposit for JUSD?

This is similar to staking ETH in the Lido to receive stETH. In JOJO's Flexible earning system, users can stake USDC to earn JUSD, which represents the value of their initial deposit. When users deposit USDC, JUSD is automatically purchased, and when they redeem USDC, JUSD is automatically repaid. The amount of JUSD is always equal to the amount of USDC staked in JOJO, with a 1:1 peg.

All staking and earning mechanisms follow the same logic. For a more detailed mechanism of Flexible Earn, please refer to the diagram below.

How can I retrieve the USDC I deposited? How do I swap JUSD for USDC?

Execute 'withdraw,' and the system will automatically convert your JUSD into USDC. Please note that withdrawals have a 24-hour time difference.

Who is paying the APY 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.

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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