Understand instantly
  • Introducing Jupiter - The Biggest Solana-based Decentralized Exchange and Aggregator
  • What is Jupiter?
  • Jupiter's Impact on Solana and Why It is the Best DEX in the Crypto Industry?
  • Jupiter Offers Perpetual Trading that is Close to Perfection
  • The Importance of Jupiter's Liquidity Pools
  • The Core of Jupiter's Tokenomics
  • Jupiter's LFG Launchpad is Becoming the Gateway for Other Projects on Solana
The Best DEX Ever Across All Chains

Introducing Jupiter - The Biggest Solana-based Decentralized Exchange and Aggregator

Jupiter DEX was introduced in 2021 and has quickly grown to become one of the top decentralized finance (DeFi) protocols on the Solana blockchain. In November 2022, the Jupiter team decided to go all in on Solana during the peak of the bear market. The necessity for trustworthy alternatives to centralized exchanges (CEXs) was highlighted by the collapse of FTX. Acknowledging Solana's strong community and high-performance capabilities, Jupiter pledged to improve its platform and services on this blockchain.

Jupiter's dedication was made clear throughout 2023 by its rapid delivery of new routes, advanced products, and enhanced developer infrastructure. The introduction of Metis, an advanced routing algorithm tailored for Solana's quick block times, and instant staked SOL to SOL swaps that provide the best prices for all trade sizes are two noteworthy innovations. Later, Dollar Cost Averaging (DCA), Limit Orders, and a Bridge Comparator were added to the product portfolio, giving users access to an extensive range of trading tools.

What is Jupiter?

Jupiter DEX is a cryptocurrency trading platform and aggregator on the Solana network that facilitates smooth and effective trading for users by combining liquidity from several decentralized exchanges (DEXs) in the Solana ecosystem. This article explores Jupiter DEX's several main offerings, including its tokenomics, perpetual exchange, liquidity pool integration, LFG Launchpad and its remarkable growth in the DeFi space.

Jupiter's Impact on Solana and Why It is the Best DEX in the Crypto Industry?

By October 2023, Jupiter had processed 102 million transactions, served 955,000 unique wallets, and enabled a total trading volume of $35 billion. With these remarkable numbers, Jupiter remains the most popular trading platform on Solana, handling about 80% of the network's organic swap volume. Also, Jupiter has been leading as the Nr.1 Agreggator across all chains in 24-hour trading volume.

Jupiter as the Nr.1 Aggregator Across All Chains
Jupiter as the Nr.1 Aggregator Across All Chains

But that's not all, this year Solana has surpassed Ethereum several times in trading volume which is even 6x times larger network by market cap. This is to keep in mind that Ethereum's Total Value Locked (TVL) is 17x times bigger than Solana and has giants like Uniswap and 1inch Network but is still having a hard time competing with Solana's top DEXes. The impressive achievement was only possible thanks to Jupiter's stellar growth.

Ethereum Which is the Largest DeFi Chain in TVL Gets Surpassed by Solana in Volume
Ethereum Which is the Largest DeFi Chain in TVL Gets Surpassed by Solana in Volume

Moreover, it wouldn't be possible without the key part of Jupiter's success which is so called "catdets" and in other words, Jupiter's community that is probably the most active and engaging DeFi community we have ever seen.

Catdets Growing the Pie
Catdets Growing the Pie

Jupiter Offers Perpetual Trading that is Close to Perfection

Jupiter DEX provides perpetual trading, an advanced tool for LP-to-traders with leverage up to 100x, which is one of its greatest strengths. It's a type of derivative contract that has no expiration date and lets traders speculate on the tokens' future price. As a result, traders can profit from short-term fluctuations in the market without having to buy or sell any actual assets. To guarantee zero price impact and zero slippage, this platform uses oracles and a liquidity pool (LP) to provide traders with deep liquidity. Because they significantly reduce the risk of position liquidation and LP pool fund loss, oracles are essential to keeping market operations stable during liquidations and stop-loss actions.

Perpetual Trading
Perpetual Trading

With just one step, users can open and close positions with no additional accounts or deposits required. By facilitating trading with any Solana token, utilizing Jupiter Swap streamlines the trading process and increases the accessibility of leveraged trading, all of which contribute to an even better user experience. For those who are new to perpetual trading, Jupiter offers the most simple trading method - Swap, an easy way to exchange tokens in seconds without needing expert knowledge.

Swap Trading
Swap Trading

The Importance of Jupiter's Liquidity Pools

An integral part of Jupiter's ecosystem, the LP pool gives the Solana blockchain the vital liquidity it needs. By using this liquidity for swaps, Jupiter users can increase the platform's overall dependability and efficiency. As traders' counterparts, liquidity providers (LPs) are essential. Tokens from the LP pool are borrowed by traders when they open leverage positions. In exchange, LPs receive fees from these transactions in addition to borrowing costs and swap profits.

Jupiter Perpetuals' liquidity provider token, JLP, is an index of carefully designed assets intended for leverage trading and swaps. Even 70% of the trading exchange's fees go to JLP holders; these fees are then reinvested in the JLP, raising its price and allowing yield and earnings to compound continuously. Jupiter Swap is the most convenient way to buy or sell JLP because it ensures a smooth transition into the ecosystem.

The Core of Jupiter's Tokenomics

JLP and JUP are the two main tokens used by Jupiter. As previously indicated, JUP is the governance token for the whole Jupiter platform, whereas JLP is the liquidity token for the Jupiter Perpetuals platform. The decentralized governance and operational efficiency of the Jupiter ecosystem are protected by this dual-token system.

Jupiter's Tokenomics
Jupiter's Tokenomics

Jupiter's LFG Launchpad is Becoming the Gateway for Other Projects on Solana

Jupiter's attempt to build the first community-driven launchpad, known as LFG Launchpad, aims to provide a reliable way for big-scale on-chain projects to launch a token on Solana. It functions as a governance utility by allowing JUP token holders to decide collectively on projects by voting on which Solana projects should release their tokens first.

Key goals of LFG Launchpad

  • LFG Price discovery: Everyone starts at once with no complicated isolated pool mechanisms. The open market should be where discovery happens
  • Immediate liquidity for paper recipients to dump, while there will be sufficient buy liquidity, preventing very erratic price swings.
  • Sufficient backstop buyer-regret liquidity for the price to stabilize before liquidity can be withdrawn by the team. This prevents a situation where the price dumps shortly but the team has all the stable liquidity.
  • Fully transparent on-chain market making, completely zero shenanigans.
  • A focused UX for the user to buy/sell prevents a lot of possible mistakes around gas and trades

Jupiter is a trailblazer in the DeFi space, utilizing the power of the Solana blockchain to provide an unrivaled trading experience. It is ideally positioned to navigate the direction of decentralized finance in the future thanks to its features, substantial liquidity, and dedication to ongoing development. Undoubtedly, Jupiter stays as the leading DEX and trading aggregator showing a true shining example of reliable, effective, and user-friendly crypto trading as it evolves further.