Jupiter: The leading protocol on Solana, the new king of Lego-style DEX

Jupiter is the most successful decentralized trading liquidity aggregator in the Solana ecosystem, currently gathering over half of the trading volume on the Solana chain. After 3 years of development, Jupiter has reached its ceiling in the trading aggregator field and has begun to horizontally expand its business, launching the Launchpad platform Jupiter Start and the incubator Jupiter Labs to achieve horizontal development across various fields of the Solana ecosystem.

Project Basic Information

• Website:jup.ag
• Twitter: @JupiterExchange, 420,000 followers
• Launch time: The token will be launched in 2024

Core Team

• Meow: Co-founder, previously involved in the founding of Meteora, R.A.C.C.O.O.O.N.S, and wBTC
• Ben Chow: Co-founder, with years of experience in interaction design and product.

Main Products

trading aggregator

Jupiter aggregates numerous liquidity pools within the Solana ecosystem, automatically seeking and aggregating the optimal liquidity resources through algorithms, providing users with a one-stop best trading path. Users can set trading parameters based on their needs, choosing the most suitable prices and slippage. The Jupiter smart contract algorithm monitors and analyzes market data in real-time, helping users select the optimal trading path.

limit order

Jupiter provides traders with a limit order function, helping to effectively avoid cost increases and slippage issues caused by price impacts during trading, while also circumventing MEV problems. Limit orders can be partially filled and obtain tokens for the filled portion. Users can choose the order validity period, exchange price, and exchange quantity themselves, to execute trading strategies more precisely.

DCA investment

Jupiter offers DCA investment products, where users only need to set the purchase frequency, price range, total time period, and the cryptocurrencies they wish to buy. Once the DCA is in effect, the purchased tokens will be automatically transferred to the user's Jupiter account and transactions will be executed automatically based on the preset conditions. DCA investment has advantages such as controllable cost price, low fees, and fully managed trading processes.

Jupiter Labs

Jupiter Labs is an independently operated project investment laboratory, driven by the community, but supported by Jupiter in terms of technology and funding. Jupiter users and community members enjoy certain privileges, including priority access and token incentives. Jupiter Labs is currently focused on the development of perpetual contracts and LST stablecoins.

perpetual contract

Jupiter Perpetual allows traders to use up to 100x leverage to trade perpetual contracts, and LPs can provide funds to earn fees. Traders can use almost any supported Solana token as collateral to open long or short positions on SOL, ETH, and wBTC.

LST stablecoin

XYZ is an LST stablecoin project supported by Jupiter Labs, where users can mint the interest-free stablecoin SUSD by collateralizing SOL. XYZ also employs a leveraged arbitrage strategy to maximize returns and uses a redemption mechanism to maintain the price stability of SUSD.

Jupiter LFG Launchpad

LFG Launchpad adopts an innovative model driven by community and transparency to support new projects. Its advantages include extensive community support, customizable anti-bot measures, user-friendly liquidity management tools, and comprehensive trading features.

Comparison with Competitors

Compared to 1inch in the Ethereum ecosystem, Jupiter has advantages in the following aspects:

1. Underlying Operating Logic: Jupiter is based on Solana's SVM, supports parallel processing, and has stronger transaction processing capabilities.

2. Gas Fee: The transaction cost on Jupiter is only $0.00015 per transaction, far lower than Ethereum.

3. Product Diversity: Jupiter offers various services such as limit orders and DCA investments to meet users' diverse needs.

4. Development Direction: Jupiter is actively laying out other tracks, while 1inch continues to focus on the DEX aggregator business.

Economic Model

Jupiter's sources of income include:

• The liquidity aggregator usage fee is within 2% of (.
• Limit order function fee ) 0.3% (
• DCA investment function fee )0.1%(
• The fees for perpetual contract products
• Launchpad incubated project token allocation

The total supply of JUP tokens is 10 billion, with an initial circulation of 1.35 billion. The main uses of the tokens include governance, liquidity mining rewards, and fee discounts.

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Project Risks

The JUP token lacks a staking mechanism, and there are no scenarios for centralized or periodic destruction and distribution of staking fees, which may be detrimental to the token's price increase.

Summary

Jupiter, as the leading DEX aggregator in the Solana ecosystem, is actively laying out plans in other sectors and has significant growth potential. However, its token economics design is relatively simple and lacks effective token value capture mechanisms. Overall, Jupiter's influence in the Solana ecosystem is expected to further strengthen, making it worthy of continuous attention.