Jones DAO (JONES) [Options Vault]
Jones DAO is a decentralized finance (DeFi) protocol that provides vaults for various assets and risk profiles on the Arbitrum network. With the recent surge in demand for Arbitrum, the total value locked (TVL) on Jones DAO has skyrocketed ten times to reach $33 million, and the platform now boasts a user base of 19.5k individuals.
About Jones DAO
Jones DAO is a decentralized yield, strategy, and liquidity protocol with vaults that allow users to access institutional-grade strategies with a single click. These strategies are designed to unlock liquidity and capital efficiency for DeFi through yield-bearing tokens.
The platform caters to three primary categories of users. Firstly, those who prefer to avoid managing their strategies actively and wish to leverage the strategy deployed by the vaults. Secondly, users who desire to keep their tokens liquid do not want to lock them up. Lastly, the platform's services can also benefit protocols seeking to earn an additional yield on their treasury positions.
Jones DAO provides a range of vaults catering to multiple tokens and varying risk profiles. Jones generates yield on the tokens held in its vaults through its sophisticated strategies, offering users access to some of the best yields in DeFi with a single click. The primary objective of Jones Vaults is to generate yield with its sophisticated strategies, with the token accretion denominated in the native vault token, thereby accumulating more of the token over time.
The OpFi vaults seek to generate risk-adjusted yield under all market conditions. The tokens in the vault are utilized to either write/sell options, purchase long options, pair trade through swaps, or as collateral for perp positions. OpFi strategies may also leverage the pricing inefficiencies across platforms to lock in potential yield through arbitrage.
Metavaults, on the other hand, enable users to provide liquidity while automatically hedging or slightly leveraging price action on underlying tokens, subject to available liquidity. Jones Metavaults offer an enhanced level of liquidity provision, performing best during periods of volatility.
Last but not least, the advanced strategy vaults offer simplified access to some of the most advanced strategies available in DeFi, catering to more experienced users' needs.
Jones DAO’ token, JONES, is a valueless governance token with no intrinsic utility at the moment. Since Jones DAO is a protocol consisting of software, it has no inherent value, and users should not expect any profits. However, this may change in the future when the protocol begins earning meaningful governance incentives. Regardless, JONES holders may deposit their tokens on Camelot and receive GRAIL in return by farming liquidity pool tokens (LP).
Apart from JONES, Jones DAO also issues jAsset tokens representing deposits made to the primary Jones vault for an asset. These jAssets are fully composable yield-bearing asset tokens that unlock liquidity and capital efficiency for assets in Jones Vaults, and they are not pegged to their underlying vault tokens. When a user withdraws their deposit, the jAsset token is burned, and the depositor receives their deposit and yields back.
Market participants can create arbitrage opportunities by influencing the exchange rate between jAssets and base assets in liquidity pools through trading. As the vaults perform, value accrues to jAssets, allowing users to swap for more of the base asset in case the ratio in the pool is lower than the actual yield.
Moreover, jAssets provide significant versatility for DeFi, driving maximum value to protocol users. In addition to the yield and composability, as described earlier, jAssets allow users to unlock yield from JONES emissions, LP fees with minimal risk of impermanent loss, and lending yield when positions are used in a lending protocol.
How to Use Jones DAO?
1. Launch the Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) wallet and switch to the Arbitrum network. Then, click on [DApp] and search for [Jones DAO].
3. Connect your Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) wallet by clicking [Connect]. Then, go to the left menu bar and select [Staking]. Select the vault you want to stake in, enter the amount, and confirm the transaction.