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Business Overview
Jetty is a generalized on-chain swap protocol. Any floating data feed expressible as an accumulating index can be traded as a fixed-vs-floating swap. See the full set of use cases on the Mission page.
LP Utility and Revenue
LP capital backs markets and earns from three distinct sources:
- Swap Fee (LP share): 75% of swap fees, pro rata by LP share ownership.
- Open Interest Fee (LP share): 75% of the annual OI fee accrual (default 10 bps annualized on absolute notional).
- Spread capture: PnL transfer between trader fixed rates and realized floating outcomes.
Strategic Positioning
- Hedge infrastructure for exchanges and brokers: Fixed-rate overlays for users with floating perp funding, borrow, or staking exposure.
- Rate-risk management for DeFi protocols: Hedge treasury liabilities, yield-linked obligations, or borrow costs programmatically.
- Settlement rail for structured products: Build fixed-income, volatility, or macro-linked products on top of on-chain swap markets.
- TradFi bridge for institutions and DAOs: Margin-based SOFR/OIS exposure without fiat custodians or 100% upfront capital.
- Volatility venue for options and derivatives desks: The first on-chain venue for variance swaps, VRP harvesting, and delta-neutral vol exposure.
- Real-world data markets: Weather, energy, inflation, and political metrics as tradeable continuous swaps, expanding beyond finance into insurance and commodities.
Addressable Market (Illustrative)
| Segment | Indicative Size | Example Hedgeable Slice |
|---|---|---|
| Crypto derivatives flow | ~$5T monthly volume | 0.1% converted to hedge flow = ~$5B monthly notional turnover |
| Staking economy | ~$135B staked assets | 5% hedged = ~$6.7B notional |
| DeFi lending | ~$30B+ TVL | 10% hedged borrow exposure = ~$3B+ notional |
| TradFi rates (SOFR/OIS) | ~$500T+ notional outstanding | Even marginal on-chain capture is massive |
| Volatility / exotics | Nascent | No on-chain venue exists today |
Growth Drivers
- Institutional participation: More basis and carry capital increases demand for hedge instruments.
- Compression of unhedged carry: As basis tightens, downside from rate spikes becomes less tolerable.
- Maturity of on-chain credit markets: Growth in borrow/lend activity increases demand for fixed-rate overlays.
- Expansion beyond crypto rates: SOFR, variance, and CPI markets open entirely new addressable segments with no on-chain competition.