What’s so special about Jupiter, the Solana ecological trading aggregator that exchanges are competing for?

Author: Climber, Golden Finance

On January 31, multiple mainstream exchanges including Binance, OKX, Bitget, etc. announced the launch of Solana ecological trading aggregator Jupiter (JUP) on the same day. Earlier, JUP, known as the "largest airdrop in history", was also officially launched. For a while, the project was widely discussed in the market.

As a recent popular project, Jupiter’s monthly transaction volume will increase approximately tenfold in 2023, from US$650 million in January to US$7.1 billion in December. This year, the daily trading volume of the project has exceeded Uniswap V3 many times, and it has also received US$500 in project financing earlier.

It can be seen that Jupiter has considerable development potential, but being unanimously favored by many well-known exchanges shows that the project must have more shining points worth exploring. Today Golden Finance will analyze it in detail.

JupiterWhat is it?

Jupiter is a decentralized trading liquidity aggregator on Solana, able to connect all DEX markets with AMM pools to span different decentralized exchanges and provide Best Token Price.

Jupiter’s intelligent routing process will also compare price routing through an intermediary token to discover price inefficiencies and market volatility. Projects dynamically split trades into multiple smaller trades to get better prices for larger trades and trade with less liquid tokens across multiple exchanges.

As one of the most advanced DEX aggregation engines in the industry, in addition to providing necessary liquidity for the Solana ecosystem, Jupiter has also expanded its DeFi product line to provide a comprehensive suite, including limit orders, DCA/TWAP , bridge comparator, perpetual trading and most recently launchpad.

Other key features of Jupiter include: new markets are quickly and automatically listed after they are launched on Solana, and token exchanges in a single transaction will not exceed transaction limits and will not result in high slippage. Users only need to enter the token and transaction amount, and the platform will automatically calculate all feasible routes for token transactions.

In addition, its API allows developers to use the liquidity on Solana: this liquidity is provided in a wrapper token to support liquidity exchange between all tokens, including wrapped versions of other protocols Token.

Jupiter was launched in October 2021, and Jupiter Exchange completed a $5 million seed round of financing led by White Hilt Capital in May 2022.

Jupiter Market Performance

Jupiter’s monthly trading volume will increase approximately tenfold in 2023. The trading volume in January was US$650 million, which increased to US$7.1 billion in December. After the platform announced the issuance of JUP tokens, trading volume hit a new high in November, exceeding $16 billion.

In addition, Jupiter has been processed With more than $72 billion in transaction volume and more than 1.56 million transactions, it has become a key layer of the Solana ecosystem. At the same time, the project accounts for more than 70% of the effective trading volume among all Solana DEXs, making it the preferred platform for traders on Solana.

The project is online After major exchanges, the token price trend remained stable and remained around $0.6. Previously, the project team announced what is known as the "largest-scale airdrop in history" to users. The total amount of JUP airdropped is 10 billion, of which 40% will be used for community growth. It is expected that there will be 4 rounds of airdrop distribution.

But January 31 After the Japanese airdrop started, there was no massive selling behavior in JUP. As of this writing, nearly 66% or 660 million JUPs have been collected, and the current total market circulation of the token is 1.35 billion, which means that nearly half of the tokens are in the hands of airdrop users.

However, given that the number of airdrops for a single user is relatively small, only 200, which is only worth US$120 at the current price, it is not ruled out that the user is waiting for the opportunity to sell for speculation.

From the perspective of currency price performance, JUP has not yet exploded but has not fallen seriously. However, the centralized listing of coins on exchanges continues to bring popularity to Jupiter. According to CoinGecko data, Jupiter has defeated Uniswap V3 to rank first in the 24-hour trading volume rankings for many consecutive days.

Highlight Analysis

The simultaneous launch of Jupiter by many well-known exchanges has verified that the project has certain value potential, so the project What are the places worthy of praise?

First of all, the project team showed a clear pattern. They did not be stingy with Puhui’s loyal users, nor did they rush to sell or operate behind the scenes to pump and dump the project just because the project was launched on the exchange.

Jupiter co-founder Meow announced JUP’s airdrop information in detail. The initial circulation of JUP will be 1.35 billion, of which 1 billion will be used for airdrops, 250 million for Launchpool, and 50 million for CEX makes the market, and 50 million pieces are used for LP demand on the chain.

In addition, previous information showed that the total amount of JUP is 10 billion, 40% of which is used for community growth, and is distributed in 4 rounds of airdrops, conducted in January every year. This is a famous brand airdrop, which is undoubtedly a huge benefit to the Lumao Party and users.

Although this "largest scale in history" airdrop benefited many users and the initial circulation was small, the Jupiter team did not dominate the rise and fall of JUP prices, nor did they take the opportunity to attract chips at a low price. Meow said that Jupiter's Launch Pool has set up a 7-day period to absorb airdrops and buyers' selling pressure, and the team will not sell tokens after 7 days. All tokens in the Launch Pool (including USDC/JUP) will also enter the team's treasury. Library or for LP.

In addition, Jupiter recorded in detail the inflow and outflow information of all JUP tokens in community documents, and Jupiter did not push up the price.

Secondly, the project team is active in doing things and constantly innovating in products and services.

Jupiter provides a variety of DeFi tools, such as: swaps: providing a payment API for specifying the exact output token amount; limit orders: allowing users to set orders at a specific price; DCA (dollar cost averaging) : A tool for regular investment strategies; Jupiter Launchpad: a launch platform for new projects.

In addition to the above tools, on January 23, Meow announced the launch of the Beta version of Jupiter LFG Launchpad. Starting February 1st, the Jupiter DAO will approve new projects to join the Launchpad and be responsible for ensuring that these projects are worth promoting to all Jupiter users to make the project as successful as possible.

In July last year, Jupiter launched the V3 version and introduced the routing algorithm Metis. To improve Jupiter’s route discovery for all trading pairs, reduce slippage on large transactions, and provide scalability for the upcoming Solana upgrade and more new DEXs.

At the same time, the project side also attaches great importance to community building. Jupiter launched the “Good Cats” airdrop reward program last December to thank community members for their positive contributions to Jupiter during its Breakpoint announcement. In addition, 40% of the JUP tokens in the official airdrop have also been allocated to the community. Regarding the specific allocation details, the project team also stated that they will negotiate with the community and will not airdrop them randomly.

Conclusion

From the recent information delivered by Jupiter in the market, we can see that the project party has a longer-term development plan, and its products and services We did not stop at a single business, but actively collected community opinions for innovation. Therefore, it can only be seen from the project construction that it has a pattern of project developers. The Solana chain is known as the "Ethereum killer". If it really surpasses Ethereum one day in the future, then its ace project Jupiter will definitely have the possibility of soaring profits.