Proposal for migrating JUP and JLP

Jupiter Products
1

Hello guys,
I have been thinking, why is there a need for 2 coins? Instead of JLP and JUP lets have one, I am struggling to find a reason not to migrate the two. By migrating the 2 coins, we will add more utility to the JUP token because imo the JUP stakers are like stock holders who receive their dividends. I think the deciders (voters) of the protocol who decide the future direction should get some dividend yield and not only be looked on as ‘‘governance voters’’
I am looking forward to discussing the idea with the community.

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That sounds super OP. However, im sure the team has looked into it!

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This needs to happen.

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This is a brilliant point that needs the team’s attention.

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100% agree with that!

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For sure! it would be good to see, but lets be real, JLP is its own unique token, and JUP is a governance token. Lets keep them seperate ! :slight_smile:

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That is an interesting thought, it would be like a Super governance token! I wonder what the biggest issue would be?

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They both control two very different mechanisms, I don’t think combining them would be the right thing to do and would just lead to confusion on the mechanics for it.

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Wrong. Two completely different tokens.

JUP is a governance token. Period. Full stop.

JLP is subject to the assets underlying it and there will be many folks that do not want this exposure.

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They need to be separated.

JLP is liquidity, not dividends stock payment like for ex. PG, or KO or JNJ. It´s possible to have impermanent Loss or Depegging for high-volume Selling (in theory, for minutes).

JUP is like a stock, but it´s more dynamic.

In my opinion:

They need to be different and separated for sure.

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But voters are getting yield, the ASR rewards. JUP IS a governance token but the incentives to participate in governance are great, not only we’re part of the biggest experiment and contributing to progress for the whole ecosystem but also the actual rewards are amazing…
JLP does it’s own thing and it’s great at it, I feel like mixing the two would be just another attempt at “revenue share” for jup holders, and IMO that’s a conversation the DAO is too young to have…

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Am sure there is a reason its that way, would be dope

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Agreed, and there is nothing stopping Jupiter form using JLP underneath for certain functions

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pues no se ve mal del todo en fin ahora mismo JLP no da ningun beneficio

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Interesting idea and I agree it with be convenient. However these are two very different functions. I fear people would be confused. In the end clarity should triumph convenience

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is this what uniswap does with its token? it distributes fees to holders? correct me if im wrong

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not really sure, but yeah, i think so

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I wish :joy:, impossible chance of this happening though

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It seems that many people in this thread are not aware of why JLP exists or the differences between JUP and JLP. Let’s see if I can give a summary of the differences and why these two serve different interests.

JLP Summary (as stated by Jupiter trading platform)
The Jupiter Liquidity Provider (JLP) Pool is a liquidity pool where it acts as a counterparty to traders — when traders seek to open leverage positions, they borrow tokens from the pool. The JLP token is the liquidity provider token where it’s value is derived from:

  • An index fund of SOL, ETH, WBTC, USDC, USDT.
  • Trader’s profit and loss
  • 75% of the generated fees (Opening, closing and borrowing fees of positions and trading fees of the pool)

JUP Summary (my own interpretation)
The JUP token is used for DAO voting and has no underlying dependencies on other tokens. The value of JUP is strictly tied to these concepts:

  • The public’s perception of the value of voting in the DAO
  • General market speculation
  • ASR, Jupuary, etc… are used as an attention gathering mechanism to attract active DAO participants

Combining the two tokens would expose JUP to a degree of risk and speculation that is not beneficial long-term for the DAO. The reason why 75% of fees are rewarded to the liquidity providers for JLP is because they are taking on risk to attract Perp traders to Jupiter trading platform. I would prefer that voters are rewarded by the DAO for participating in DAO governance (ASR), and any projects that interact with the DAO pay for voter attention in JUP (LFG).

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I would love this, consolidate everything into one purpose

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