The largest aggregator exchange on the Solana chain, Jupiter, has launched two tokens: one is the governance token JUP and the perpetual pool token JLP.

JUP is more widely known because it has been listed on multiple exchanges, but what I talk about the most is JLP.

JUP is a governance token that can be staked for proposal voting. Participating in proposal voting will yield additional JUP rewards, and there may also be a second airdrop of JUP; if you only buy JUP on centralized exchanges without staking or voting, then the governance token JUP is no different from meme coins.

JLP is the token for Jupiter's perpetual trading pool. Since perpetual trading generates a significant amount of transaction fees, this portion of the fees is automatically added to the pool, increasing the price of JLP. As perpetual trading continues, transaction fees keep coming in every second. Holding JLP does not require staking; you just need to hold it in your wallet, and the transaction fees will automatically reflect in the price increase; there is no need to claim the fees, nor is there a place to claim them. JLP cannot be staked either, but some lending supports JLP as collateral for loans.

Staking and collateral are two different things.

JLP can also decrease in value because the pool includes SOL, BTC, and ETH; thus, if the market declines, it will also drop; it does not always go up.

When transaction fees are low, it can fall along with the decline of the component coins.

Do you understand?

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