jHYPER vs. wjHYPER
jHYPER
Strategy
As described above, jHYPER is a non-tokenized auto compounding strategy for HYPER that provides the opportunity to compound more vlHYPER into a position over time. jHYPER also benefits from automated vote incentive management on Dineroās Hidden Hand.
Deposited tokens are not composable and must remain inside the jHYPER strategy vault until an unlock period occurs.
Unlock periods occur every two weeks.
Yield
jHYPER yield is derived from auto-compounding and automated vote incentive management. It is not subject to liquidity incentives, unlike its tokenized counterpart wjHYPER, so has a higher base yield.
wjHYPER
Strategy
Fundamentally, the wjHYPER strategy is quite different from the standard jHYPER strategy.
There are two main reasons for this:
It delivers liquidity incentives to Hidden Hand
It is fully composable, with the ability to be used by 3rd party protocols
In this way, wjHYPER ends up having tradeoffs that create a different experience compared to jHYPER.
It is more composable, meaning that some partners such as Hyperlock or Thruster can build LP mechanisms or vaults which provide user benefits such as boosted yield. However, the base yield of wjHYPER is diminished since this form of the strategy delivers liquidity incentives to Hidden Hand.
Yield
We already went over the fact that wjHYPERās base yield will differ from jHYPERās since wjHYPER provides liquidity incentives for bribes. However, wjHYPER exists for a whole different purpose.
For wjHYPER holders, composability is key.
This token has a highly efficient yield infrastructure built behind it. Working hand-in-hand with Thruster, Jones has created a wjHYPER / WETH pool that keeps wjHYPER liquid and helps users boost yield.
This boosted yield may, in some cases, reward you with more yield than you would have sacrificed by using the liquid token version.
The secondary APY shown on the frontend of Jones, highlighted in purple, represents 50% of the wjHYPER / WETH Thruster pool token yield when staked on Hyperlock. This way, the only yield figures we show on the front end are only what comes from wjHYPER, not from other protocols.
Head to the LP Strategy Guide to learn how to gain access to this yield.
Rewards Collection & Distribution
Auto-Compounding
Auto-compounding is the main perk for depositors of both jHYPER & wjHYPER.
After the 2 week long vote rounds occur, all rewards collected (including Thruster gauge rewards) are auto-compounded to enhance yield.
Voting Incentives
Thanks to Hidden Hand, the management of voting incentives has become automatic - users no longer experience the hassle of deciding which protocol to delegate votes to.
Every voting round, the voting engine will optimize votes to achieve the maximum yield, sell any rewards collected except for more HYPER, and distribute tokens per the waterfall distribution system outlined in the following section.
A portion of the vote incentive yield is given by holders of wjHYPER to the liquidity pool as incentives. This is both a trade-off for the added benefit of composability, and a function that keeps liquidity healthy in the pool.
Here is the equation for determining bribe amounts from wjHYPER:
Where:
bribe = The total vote incentive amount
pool = wjHYPER in the pool
total = total wjHYPER
Waterfall Distribution
Rewards will have a staggered system in place, with a hierarchy dictating their flow. All rewards received are immediately converted to HYPER.
After rewards are collected, they are distributed in the following order:
Protocol Incentives: A portion of the tokens accrued by the protocol will be distributed between the Jones treasury and Hyperlock treasury. This guarantees both the sustainability of the jHYPER strategy and the growth of the Hyperlock ecosystem as a whole.
Liquidity Incentives: A portion of the tokens accrued by the protocol are then used to incentivize the liquidity pool through Hidden Hand. This only affects wjHYPER users.
Withdrawal Queue: If necessary, any remaining tokens will be converted into HYPER and fed into a unified queue for users who have previously requested token withdrawal. This step is conditional, based on withdrawal requests.
Vault Yield: A portion of the tokens accrued by the protocol will be converted into HYPER and accrued proportionally to user positions, locking the HYPER for more vlHYPER.
Reward Split
Rewards are split in the following way for jHYPER:
hyperTHRUST is converted to HYPER and compounded into the vault.
Voting incentives are converted to HYPER and compounded into the vault.
A 6.949% incentive will be retained, which goes to the Jones Treasury.
Rewards are splitted in the following way for wjHYPER:
hyperTHRUST is converted to HYPER and compounded into the vault.
Voting incentives are converted to HYPER and compounded into the vault.
A 6.949% incentive will be retained, which goes to the Jones Treasury.
A further 10% of the yield is retained and automatically used as voting incentives for the wjHYPER - ETH Thruster pool.
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