➗Strategy Incentives
What Are Strategy Incentives?
Jones retains incentives from strategies to power retention mechanisms and promote sustainability, while boosting yield for long-term depositors.
The protocol applies different incentives depending on the selected strategy.
Protocol Incentives*
| Strategy | Action Performed | Incentive | Details |
|---|---|---|---|
jGLP | Earn Yield | 0% | jGLP vault users will earn ETH yield from base GLP, plus the ETH yield from leverage. Since esGMX is non-transferrable, any esGMX earned will not accrue to users. |
jGLP | Withdraw | 3% | jGLP users incur an incentive upon withdrawal of 3%. 1% goes back to the vault as extra yield and 2% goes to the protocol for providing the vault. |
jGLP | Autocompound | 2% | jGLP tokens are autocompounding wrapper tokens. 2% of autocompounding yield flows to the protocol for enabling this mechanism. |
jUSDC | Withdraw | 0.97% (less GMX incentive to redeem USDC) | jUSDC users incur an incentive upon withdrawal of 0.97%. The amount of incentive is determined by: 0.97% - GMX redemption incentive. When there is enough USDC in jUSDC to cover withdrawal requests, the max incentive applies. When GMX incentives > 0.97%, there is no retention incentive. |
jUSDC | Autocompound | 0% | jUSDC tokens are autocompounding wrapper tokens. None of the autocompounding yield flows to the protocol for enabling this mechanism. |
Borrowed GLP | Acquire Leverage | 20% | This incentive is retained from the amount of GLP backing jUSDC. It does not come from the yield end users receive from jUSDC. |
*These incentives (and the related yields) are governed by upgradable smart contracts that are controlled by Jones DAO. Access to the tokens and products described herein may be denied based on the location, residency or citizenship of any person.
The information contained herein is subject to change at any time. Nothing herein constitutes legal, investment, or tax advice to any person.
GMX Incentives
| Strategy | Action Performed | Incentive | Details |
|---|---|---|---|
jGLP | Deposit Collateral to Acquire GLP | 0.25%* | This incentive is applied by GMX for the creation of new GLP tokens when a user deposits collateral other than GLP into the vault. |
jGLP | Create GLP Leverage | 0.25%* | This incentive is for minting new GLP from GMX when acquiring leverage. |
jGLP | Deleverage GLP | 0.25%* | This incentive is applied by GMX for the burning of GLP. |
jGLP | Withdraw | 0.25%* | This incentive is applied by GMX for the withdrawal of tokens other than GLP upon deleverage. |
jUSDC | Withdraw | 0.00 - 0.25%* | GMX charges an additional incentive to burn GLP and mint USDC. Liquidity for withdrawals is first sourced from any USDC that has not been used to mint GLP, avoiding this incentive. If there is no available USDC, further withdrawals will require burning of GLP and minting of USDC. |
*Figures marked with an asterisk will vary based on differences in GMX platform incentives. The 25 bps shown in this chart represents a normalized incentive based on current data. Please note that these are GMX platform incentives, and are not controlled by Jones DAO or its affiliates. The GMX platform incentives may change at any time.
Incentive structure is subject to change without prior notice.
Action-Based Incentives*
| Strategy | Action Performed | Incentive | Details |
|---|---|---|---|
jAURA | Withdraw | 3% | jAURA users incur an incentive upon withdrawal of 3%. 1% goes back to the vault as extra yield and 2% goes to the protocol for providing the vault. |
jAURA | Rehypothecation | 7.5% | 5% goes to the wjAURA vault and 2% goes to the protocol. For information on rehypothecation, click here. |
*These incentives (and the related yields) are governed by upgradable smart contracts that are controlled by Jones DAO. Access to the tokens and products described herein may be denied based on the location, residency or citizenship of any person.
The information contained herein is subject to change at any time. Nothing herein constitute legal, investment, or tax advice to any person.
Yield-Based Incentives*
| Strategy | Action Performed | Incentive | Details |
|---|---|---|---|
jAURA | Earn Yield | 6.9420% | 9/10ths goes to the Jones protocol. 1/10th (0.69420%) goes to the Aura treasury to support the Aura ecosystem. |
*These incentives (and the related yields) are governed by upgradable smart contracts that are controlled by Jones DAO. Access to the tokens and products described herein may be denied based on the location, residency or citizenship of any person.
The information contained herein is subject to change at any time. Nothing herein constitute legal, investment, or tax advice to any person.
| Farm | Action Performed | Incentive |
|---|---|---|
jUSDC | Deposit | 1% |
jGLP | Deposit | 2% |
wjAURA | Deposit | 0% |
Unlike the other vaults, STIP farms for Jones strategies take retention incentives at time of deposit.
We chose this method because, unlike withdrawal incentives, it allows lenders to properly collect rewards for borrowers.
*NOTE - These incentives do not flow back to the vaults as retention yield.
Retention Mechanism
The Jones retention mechanism is built to support long-term holders. When strategy users withdraw from the vaults, they incur a withdrawal incentive. This withdrawal incentive is then routed back to the vaults and distributed to remaining holders as bonus yield. The amount of incentives that are sent back to the vault varies between each strategy.
You can find the amounts depicted in the tables above.
Through this mechanism, Jones is able to align users to the protocol by rewarding those who utilize the vaults for longer time periods.
Disclaimers
This presentation describes potential yield or incentives generated through decentralized finance (DeFi) protocols and related smart contracts. Access to the referenced smart contracts and participation in their associated yield opportunities is prohibited for United States persons and persons in other jurisdictions where such activities are unlawful.
The yield or incentives described are based on the current configurations of the referenced smart contracts, which are subject to change at any time per the discretion of Jones DAO. Past performance is not indicative of future results. This information does not constitute investment, legal, or tax advice. You should conduct your own due diligence and consult with appropriate advisors before participating in any yield generating activities, using smart contracts, or purchasing tokens.
You acknowledge and agree to comply with all applicable laws and regulations in your jurisdiction. You agree not to access any prohibited smart contracts or engage in any unlawful conduct. Neither Jones DAO nor any of its affiliates assume no responsibility for your understanding of the legal implications described herein or your compliance with applicable restrictions. You access any smart contracts and engage in associated activities at your own risk.
The contents of this document are provided for general informational purposes only. No representations or warranties are given, express or implied, as to the accuracy or completeness of the information. This disclaimer may be updated at any time without notice.
Neither Jones DAO nor any of its affiliates make any representations or warranties regarding the proper functioning, security, or legality of any referenced smart contracts. Smart contracts involve significant risks, including but not limited to: (i) bugs or errors in code leading to unintended outcomes; (ii) hacking, theft or loss of funds due to security vulnerabilities; (iii) changes in law or regulations that impact the legality or viability of the smart contract; (iv) failure of the underlying blockchain network or protocol, including congestion and economic risks; and (v) new technical paradigms rendering the smart contract obsolete. Users access smart contracts at their own risk. Neither Jones DAO nor any of its affiliates are responsible for any losses or damages arising from the use of any smart contract by any person in any jurisdiction. Users are solely responsible for verifying code correctness, compliance with laws and regulations, and weighing the economic risks associated with smart contracts.
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