FAQ
USDC & SOL Staking – FAQ
What is the USDC Staking Vault?
The USDC Staking Vault is a delta-neutral yield strategy on Solana.
You deposit USDC. The vault deploys it into Jupiter’s JLP liquidity pools and hedges market risk on Drift. The goal is to grow your USDC balance with limited exposure to price swings in SOL, BTC, ETH, etc.
We run a SOL Staking Vault with the same engine. There, performance is measured in SOL terms instead of USDC.
How is this different from just staking USDC or SOL?
Our USDC Staking and SOL Staking vaults stack several yield sources:
JLP rewards (fees + incentives from providing liquidity on Jupiter)
Perp funding income from hedges on Drift
Occasional JLP premium/discount capture
Controlled leverage to scale all of the above
USDC and SOL staking are subject to further improvements over time.
Is the strategy delta-neutral?
Yes. Both vaults are designed to be delta-neutral.
The vault is long JLP (basket of SOL, ETH, BTC, etc.)
It opens offsetting hedges on Drift
Net price sensitivity (delta) is kept close to zero
How do the vaults generate returns?
Both USDC and SOL Staking vaults earn yield from:
JLP rewards – trading fees and incentives
Perp funding – collecting funding when our hedged positions are on the “paid” side
Premium/discount capture – adjusting exposure when JLP trades rich or cheap vs its intrinsic value
Leverage – borrowing and hedging in a controlled way to scale all of the above
APY is variable and not guaranteed. It depends on funding, volatility, and liquidity.
Does leverage significantly increase the risk?
Leverage increases position size, not necessarily directional risk.
For every leveraged JLP position in USDC or SOL Staking, the vault:
Opens corresponding hedges on Drift
Continuously recalculates net delta
Rebalances when exposure drifts outside predefined bands
Deleverages in stressed conditions (e.g. negative funding, high borrowing costs, thin liquidity)
The purpose of leverage here is to amplify yield sources.
How does the dynamic leverage mechanism work?
Leverage is adjusted in real time based on the market environment. Key inputs:
Stablecoin borrowing cost
If USDC borrowing cost exceeds expected JLP yield, the vault cuts leverage to protect capital.
JLP premium/discount
When JLP trades at a high premium, the vault reduces leverage and crystallizes that premium.
As the premium normalizes, leverage can be scaled back up.
Market and liquidity conditions
Volatility, order book depth, and trading activity on Jupiter and Drift affect how aggressively capital is deployed.
In short: the strategy leans in when risk/reward is attractive and steps back when it isn’t.
How safe is the vault infrastructure?
Security is a first-order constraint.
Built on Drift Vault Framework
We run on Drift’s audited vault architecture.
We do not deploy custom smart contracts for these products.
Limited permissions
Our role: place and cancel trades within the vault account.
Your role: deposit and withdraw funds.
We cannot withdraw your assets or change withdrawal rules.
Unmodified framework
We use Drift’s standard configuration.
Any contract-level change would appear directly on Drift’s own vault pages.
Smart contract risk is not zero, but we deliberately build on battle-tested primitives.
What are the main risks?
Key risks for both USDC and SOL Staking:
Smart contract / protocol risk – issues with Solana, Jupiter, or Drift
Market and funding risk – extreme moves, funding flips, or dislocations can reduce returns or cause losses, even in hedged setups
Execution / infrastructure risk – RPC failures, oracle issues, or order errors can temporarily leave the vault partially unhedged
Strategy / model risk – parameters and assumptions may underperform in certain regimes
Only allocate capital you can afford to risk. Past returns are not a guarantee of future performance.
Are the vaults custodial or non-custodial?
Both USDC Staking and SOL Staking vaults are non-custodial:
Funds are held in the Drift Vault smart contract.
We have trade-only permissions.
Only depositors can initiate withdrawals.
There is no centralized, off-chain custody layer for these strategies.
Are there lockups or redemption periods?
Yes. There is a redemption period so we can unwind positions cleanly and avoid unnecessary slippage.
When you request a withdrawal, your shares are queued into the next redemption cycle.
After the cycle processes, your USDC or SOL is returned to your wallet.
Always check the latest terms before depositing.
Transparency & FeesWhat are the fees?
Fees are fully transparent for each vault. They typically include:
A management fee for running and maintaining the strategy
A performance fee charged only on positive performance
How do I deposit and withdraw?
Deposit
Connect your Solana wallet.
Select USDC Staking or SOL Staking.
Approve the deposit transaction.
Withdraw
Open the same vault and click Withdraw.
Enter the amount and confirm.
Your request is added to the next redemption window.
After the redemption period, you need to confirm the withdrawal (or cancel it). Once confirmed, your USDC or SOL will be sent back to your wallet.
All flows are on-chain and visible in Solana explorers.
How can I monitor performance?
For both vaults we provide:
Live share price / NAV
PnL
Current estimated APY
Links to Drift interface so you can verify positions independently
You can also join our Telegram channels for real-time updates.
I’m an institution or large ticket investor. Can I get a tailored setup?
Yes. For larger allocations we can discuss:
Custom risk limits and leverage ranges
Alternative fee structures
Reporting and data tailored to your operational and compliance needs
Contact us in TG: https://t.me/Nox_Solana
How do I get support?
For general questions, use our public Telegram.
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