In this Twitter space, [Hunter]( from [Arbitrum]( is joined by [Ice]( and [Nach]( from [Jones DAO]( to discuss their project, stance on being an Arbitrum-native project, upcoming releases and more.
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Read our notes below to learn more
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**About Jones DAO**
* They are set off to build a suite of automated and decentralized tools currently in the form of vaults to simplify a lot of complexity of DeFi.
* Their team is [Dopex]( maxis and they are building on top of it.
* Inheriting the security of the main chain while being able to do complex stuff in terms of architecture can only be done on Arbitrum.
* They are set out to solve capital efficiency in DeFi options.
* They have products coming out that are delta and gamma neutral, leveraged $GLP products which are automatically and algorithmically managed.
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**Thought process**
* Options liquidity in general has gone down significantly as has the total TVL in all of the products across crypto.
* Part of the problem why people walked away is that people don’t understand options well enough.
* They think one of the problems in DeFi is it’s a little bit disconnected from the end user.
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**Metavaults**
* It’s a vault product for LPs.
* When a user deposits their asset in the vault, it takes a portion of the yield generated by the LP and uses it to buy options.
* There’s a bull metavault that will buy call options and bear metavault that will buy put options automatically and these are options on $ETH.
* Metavault is better than being a naked LP.
* They are working with Dopex to potentially integrate the metavaults into the farming UI.
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**JR asset**
* They are pushing their jGLP product to the frontline because they don’t have the governance piece they need to work through.
* They will be launching their GLP product first then their R product.
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**jGLP and jUSDC**
* jUSDC is a stablecoin vault that’s coming out which is going to be gamma and delta neutral.
* They are targeting APRs between 6-8%.
* jGLP is taking one of the best assets in DeFi which is GLP then leveraging it up so that the beta matches the beta of the broader market.
* jUSDC is more of a risk-off product that is earning blue chip lending yields and jGLP is more of a risk-on product where a user gets more exposure to the broader market.
* If yields on GLP compress, users are still going to get 2-3x yields.
* They’re making the platform very attractive because institutions can come in then be GLP depositors and have their risk requirements or hedging taken care of by a protocol like Jones.
* The biggest beneficiary of all of this is [GMX]( because it makes them scalable and attracts a lot of liquidity for traders to have less slippage and bigger position sizes.
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**Insights on Camelot and Orbital DEXs**
* Orbital is going to be a pretty exciting DEX in general.
* Nach was a [Camelot]( guy in their first protocol on [Fantom](
* Orbital is a totally different tokenomics system and group.
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**Q&A**
***Q: Can you tell us more about the delta and gamma hedging strategies?***
* Their architecture for jUSDC and jGLP eliminates any delta or gamma exposure and they don’t need to have hedges because jUSDC acts like a lending pool and jGLP borrows $USDC from that lending pool in order to buy more GLP and leverage it.
* It is similar to how [Gearbox Protocol]( works.
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***Q: Do you consider manual intervention when a black swan happens?***
* They spent the better part of this year actually testing and modeling every scenario possible.
* The parameters relating to collateralization and leverage are managed automatically.
* Everything they’ve done is built upon a solid bedrock of in-depth understanding and research.
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