Jones DAO · ● Live on Arbitrum
jUSDC & jGLP leveraged vaults
Two vaults that work as one strategy. jGLP levers its GLP position with USDC borrowed from jUSDC, and pays part of the amplified yield back — so USDC depositors earn a stable, transparent yield without the costs of delta-neutral hedging.
- peak TVL
- ~$20M
- live on L2
- Arbitrum
- vaults working in tandem
- 2
- Solidity
- Foundry
- ERC-4626
- Transparent proxies
- GMX V1 & V2
- Chainlink + sequencer feed
- EIP-712
- Arbitrum
01Two vaults, one strategy
Vault
jUSDC
deposit USDC.e
yield in USDC.e
Vault
jGLP
deposit GLP
yield in ETH
Leveraged GLP
Smart Leverage
Risk-on
jGLP
- Deposit GLP or any GLP basket token; withdraw GLP or any constituent at any time.
- Borrows USDC only from jUSDC to mint more GLP — no other leverage source.
- Smart Leverage, developed with extensive backtesting, rebalances automatically within an algorithmically determined range.
- Keeps exposure similar to the broad crypto market (ETH, BTC…) while earning multiples of the base GLP yield, accrued in ETH.
Risk-off
jUSDC
- Deposit USDC.e only; yield accrues in USDC.e.
- Lends its USDC to jGLP and receives a share of the GLP yield built on that collateral.
- Zero gamma exposure and no dynamic hedging costs — none of the inefficiencies of “delta-neutral” stablecoin strategies.
- Withdrawals are signalled first and become available 24 hours later.
Both vaults offer optional auto-compounding, which mints the jGLP and jUSDC receipt tokens. jUSDC is not a stablecoin: it is a receipt token whose redeemable value grows over time.
02How it works
Step 1
Users deposit GLP (or any GLP basket token) into jGLP, and Arbitrum-bridged USDC.e into jUSDC.
Step 2
jGLP borrows USDC from jUSDC and mints more GLP, gaining leverage on its GLP position.
Step 3
jGLP delivers amplified, transparent real yield to its depositors.
Step 4
jUSDC delivers USDC yield by receiving a portion of the GLP yield generated on its collateral.
03The jUSDC rate model
jUSDC's yield is sourced from the GLP funded with its own USDC. The share it receives grows with utilization, so lenders are paid more exactly when their capital is working hardest.
U = utilization of the jUSDC pool · J = jUSDC's share of the GLP yield · G = GLP yield
- J — jUSDC share of GLP yield
- U·J — fraction of G paid to jUSDC
Show as table
| U | J | U·J |
|---|---|---|
| 25% | 35.0% | 8.8% |
| 50% | 35.0% | 17.5% |
| 75% | 35.0% | 26.2% |
| 84% | 35.0% | 29.4% |
| 85% | 46.2% | 39.3% |
| 90% | 52.9% | 47.6% |
| 95% | 59.5% | 56.5% |
| 100% | 66.2% | 66.2% |
04Architecture of jGLP & jUSDC
The first generation (2022 – 2023) ran on GMX V1 as one system of vaults, a router, a leverage strategy and a reward pipeline:
Vault router
Single entry for both vaults: GLP and USDC deposits, jUSDC withdrawals signalled per epoch with a cooldown, compound / uncompound, pause and emergency pause.
jGLP & jUSDC vaults
ERC-4626 vaults over GLP and USDC; the stable vault is borrowable by the strategy, and mint / burn is restricted to the router.
Leverage strategy
Custodies GLP, borrows USDC to mint more GLP on deposit, deleverages on redemptions, and lets a keeper rebalance, lever up / down or unwind.
Reward pipeline
GMX rewards in WETH go through a distributor and splitter — the stable share scales with utilization — then are swapped with oracle-checked min-outs and tracked per share.
Auto-compound receipts
Optional ERC-20 receipt tokens that reinvest rewards automatically for jGLP and jUSDC holders.
Zap adapter & whitelist
Zaps from any token or ETH into GLP, flexible USDC caps, and per-user roles for cap / cooldown bypass and retention.
05Evolution: jUSDC becomes a lending hub
In 2024 jUSDC was rebuilt as a standalone, upgradeable lending vault, so that any leveraged strategy — not only jGLP — could borrow from the same USDC liquidity.
A lending vault, not a pair
An ERC-4626 vault whose total assets are its idle USDC plus everything loaned out. Any contract granted the STRATEGY role can borrow, each under its own cap.
Enforced payback
When a withdrawal needs more than the idle USDC, the vault asks an Enforce Hub to pull the shortfall from borrowers, split by target weights, and finishes the withdrawal through callbacks.
Cooldowns & retention by role
Withdrawals are queued behind a cooldown, with per-user roles that can bypass it for a retention fee.
Migration & multichain
A router migrates positions from jUSDC V1, and deposits can arrive from other chains through Socket.
jUSDC V2 · ERC-4626 lending vault
borrow · payBack · enforced payback · caps per strategy
GMX V1 · GLP
jGLP
Leveraged GLP — the original borrower, moved onto the new external jUSDC in the 2024 migration.
GMX V2 · GM tokens
jGM
A leveraged index over a basket of GM markets (BTC, ETH, ARB, LINK, SOL) with target weights, a 4-stage rebalance and operation parameters signed off-chain with EIP-712.
GMX V2 · GLV
wjGLV
Leveraged GLV vaults (WETH-USDC and BTC-USDC) driving GMX V2's asynchronous deposits and withdrawals through callbacks.
Each borrower is a keeper-driven state machine that borrows up to a target leverage, harvests into receiveRewards and repays on demand when jUSDC enforces a payback.
06Use cases
Risk-on
jGLP maximizes yield while keeping approximate exposure to the broad crypto market.
Risk-off
jUSDC offers risk-averse users a source of USDC yield in all market conditions.
Treasuries
Together, jGLP and jUSDC form a pair of productive tokens for treasuries of any size.
Built while I was Senior Solidity Developer at Jones DAO, from the first jGLP / jUSDC contracts to the jUSDC V2 lending vault and its GMX V2 borrowers. Product details are summarized from the official Jones DAO docs.