Markets
Jetty is a generalized swap engine. Any rate with an oracle feed can become a market. At launch, three market types are supported.
Funding Rate Swaps
Perpetual futures charge or pay a funding rate to keep their price in line with spot. This rate fluctuates constantly and can swing from highly positive to deeply negative overnight.
With a funding rate swap, you can lock in the current funding rate for a set period. If you're running a delta-neutral basis trade earning carry, a swap turns that variable income into a fixed return for 30, 60, or 90+ days. No more watching carry evaporate when funding flips.
Who benefits: Basis traders, market-neutral desks, and anyone earning yield from the funding basis.
Staking Yield Swaps
Staking yields fluctuate with network activity and validator economics. A staking yield swap lets you fix your staking returns for a defined period while keeping your principal staked.
If you're an institution or treasury managing staked assets, you can lock in today's yield and plan around a known number. If you think yields are about to rise, you can take the other side and profit from the increase.
Who benefits: Stakers, validators, treasury managers, and funds with staked asset exposure.
Borrow Rate Swaps
Variable borrow rates are a hidden risk in leveraged DeFi strategies. A spike in borrow costs can turn a profitable position into a losing one. Borrow rate swaps let you fix your financing cost so you know your worst case upfront.
This is especially useful for strategies that depend on a spread between what you earn and what you pay to borrow, like leveraged yield farming or looping strategies. Fixing the borrow side makes the spread predictable.
Who benefits: Leveraged traders, loop strategists, and anyone with variable-rate debt exposure.
Next Steps
- Understanding Swaps for how swap PnL works.
- Trading Basics for how to open and manage positions.
- How Jetty Works for the protocol design behind these markets.