Jones DAO is proposing a mutually beneficial strategic partnership with Klima DAO. Jones has developed their jUSDC and jGLP advanced strategy vaults which provide depositors with superior and transparent amplified yields on both USDC and GLP.
We are confident that a deposit from the Klima Treasury into the jUSDC Vault will significantly enhance both the productiveness of the Klima Treasury and the growth of Jones DAO, leading to continued growth of the Arbitrum Ecosystem.
The team at Jones has known about Klima’s mission since its inception and were always keen to take Carbon Offsets seriously. Also, both teams emerged from the Olympus community and have been looking for the right opportunity to strike a partnership.
Jones DAO has recently completed a Carbon offset with Klima, which you can see here: https://www.klimadao.finance/retirements/jonesdaogov.eth/1
We are hopeful that this Carbon offset will be seen by our peers in the Arbitrum ecosystem, motivating them to follow in our footsteps and using Klima to do so. We’re committed to helping the Klima team make these connections.
When seeking partners for our jUSDC Vaults, we have remained focused on onboarding high-quality, DeFi-native teams from the beginning. To perpetuate Klima’s treasury and allow them to continue on their mission, we think jUSDC is a uniquely compatible, audited, low-risk, high-return strategy which we will outline in detail below.
Klima, and the vibrant underlying community, include all of the characteristics of an ideal, high-quality partner. A strong and growing Klima Treasury is in the interest of anyone building at the cutting edge of ReFi - it will benefit all builders and communities.
jUSDC Architecture & Yield
jUSDC and jGLP deliver superior transparent yields with liquidation proof smart leverage in the background. Additional details on this mechanic:
GLP is currently the most lucrative and scalable yield in DeFi, with over $400m in TVL earning consistent yield from trading fees on GMX. Built on GLP, jGLP and jUSDC are two distinct and efficient products for both risk-on and risk-off users respectively.
The jGLP Jones Vault borrows from the jUSDC Jones Vault to leverage GLP, enhancing its yield and delta, bringing the price behavior very close to the broader crypto market. jUSDC earns lending yield from the leveraged GLP, staying delta and gamma neutral.
It’s important to note - the leveraging & deleveraging of jGLP is what will keep collateral ratios and the principal jUSDC stable. This unique architecture results in yield, efficiency, and safety far greater than other GLP-based products.
jUSDC: Gamma Neutral Stablecoin Vault
- Pristine stablecoin yield: ideal for risk-off users. Transparent and on-chain, with enforced lending parameters to ensure delta and gamma price neutrality. The APR is expected to beat yields offered on crypto blue chip money market and lending platforms.
- Superior architecture to GLP hedging models: no short gamma risk, no basis risk, zero delta and zero gamma exposure, no constant hedging costs. Since jGLP leverages GLP’s already high yields, Jones is able to create a much higher base from which to reward jUSDC depositors than our competition. This means: even during periods of yield compression, jUSDC depositors will be rewarded through our vault incentives - including non-GLP related products.
- As a USDC Stablecoin Vault, jUSDC accrues all of its yield in USDC.
If you want to learn more about jGLP Vaults, you can head to our docs or read our whitepaper.
jUSDC typically yields 6-8%.
Check out the DeFiLlama data here: https://defillama.com/yields/pool/dde58f35-2d08-4789-a641-1225b72c3147
If this proposal is well received, we would like it to become a KIP. If that KIP passes, we propose that the Klima Treasury would be whitelisted for the jUSDC vault, granting it the ability to deposit tokens.
Discussion around the amount of tokens is to be left to the discretion of Klima DAO.
At the request of Klima DAO, we have added a poll to this RFC so an accurate sentiment of the community may be determined.