Jupiter is a decentralized exchange (DEX) aggregator on the Solana blockchain, designed to provide users with the best token swap rates by aggregating liquidity from multiple DEXs and automated market makers (AMMs) like Raydium, Serum, and Orca. Launched in 2021, Jupiter has become a key player in Solana's DeFi ecosystem, optimizing swaps and offering advanced trading features.
Jupiter’s governance token, JUP, is central to its ecosystem, empowering holders to influence platform developments and participate in governance decisions. Jupiter plays a critical role in the Solana DeFi landscape, combining liquidity aggregation with a comprehensive suite of trading tools to provide an efficient, accessible, and innovative platform for decentralised trading.
Below is an overview of Jupiter’s core products that we will explore further in this report
Spot Overview
Jupiter Spot is a platform for token trading on the Solana network. It utilises a universal routing algorithm, Jupiter Routing, which interacts with over 22 AMMs to identify favorable pricing for trades across the Solana ecosystem.
Jupiter Spot supports four primary methods for executing spot trades:
- Swap
- Limit Order (LO)
- Dollar-Cost Averaging (DCA)
- Value Averaging (VA)
Swap
The Swap function enables users to exchange any token on Solana at competitive prices with no additional platform fees. It automatically adjusts settings to reduce slippage, applies suitable priority fees, and provides warnings when necessary. Users can define their acceptable slippage limits and priority fee thresholds prior to executing a swap.
LO
Limit Orders allow users to set a specific price at which a trade will be executed. Once this target price is reached, the system attempts to fill the order at the exact specified rate. The user interface provides guidance on setting appropriate order parameters.
DCA
DCA schedules regular, automated trades at user-defined intervals (e.g., weekly or monthly), with a 0.1% fee per transaction. The system also includes features to retry failed orders and aims to reduce priority fees and slippage automatically.
VA
VA is similar to DCA but varies the investment amount based on price movements. When prices are low, it increases the purchase amount; when prices are high, it reduces the amount. This approach focuses on maintaining targeted portfolio growth rather than a fixed transaction size at each interval.
Swap Features
Solana is designed with trading in mind, offering high speed and low transaction costs. This environment supports a wide variety of tokens and markets, many of which Jupiter integrates into its platform.
Key Objectives of Jupiter as an Everyday Exchange:
- Access to Competitive Pricing:
Jupiter provides instant routing to newly launched tokens and markets, automatically incorporating them into its routing engine, Metis. Metis aims to secure favorable prices at no additional protocol fees. - Enhanced Token Safety and Information:
Jupiter’s interface displays key token data (e.g., metadata, authorities, verification status) and relevant trading information (e.g., price impact). Token search is refined by filtering out duplicates and imposter tokens, and by incorporating community feedback and live market data. - Frictionless Trading with Flexible Settings:
Users can configure transaction fees, slippage thresholds, and other parameters. An “Auto” mode provides optimised default settings, while “Manual” mode allows experienced users to customize slippage parameters, broadcast modes, fees, and advanced features. This includes options for MEV protection and routes that limit the types of intermediaries used.
Swap Settings Overview:
- Transaction Fees:
Solana requires a base fee for each transaction. As network usage increases, users can pay an optional priority fee to expedite transaction processing times. - Slippage:
Slippage refers to price changes occurring between quote and execution. Users can set acceptable slippage thresholds. If the price moves beyond these thresholds, the trade fails.
Jupiter continuously refines these settings to make the trading experience simpler and more reliable. Users can choose between Auto mode, which determines slippage and transaction fees dynamically, or Manual mode, which supports more granular adjustments.
Auto/Manual Swap Settings Modes:
- Auto Mode:
Recommended for beginners. Dynamic slippage and transaction fees are automatically calculated. Users can enable MEV protection, which directs transactions to Jito block engines to reduce the risk of front-running (sandwich attacks). - Manual Mode:
Designed for users who require finer control. Includes options for fixed or dynamic slippage, different broadcast modes (Priority Fee, Jito Only, or Both), and varying priority levels for faster execution. Manual mode also allows for advanced features like using direct routes only, wrapping SOL, and excluding certain AMMs.
Global Settings: Users can choose their preferred language, Solana explorer, transaction versioning, and custom RPC endpoints. Selecting endpoints with lower latency can improve trade execution times.
How to Trade Safely on Jupiter
Jupiter balances ease of use with informational safeguards. It highlights potential risks (e.g., large price impact, token verification status), displays relevant token details, and provides transaction summaries (e.g., minimum received, transaction fees, price differences).
MEV Protection: Enabling MEV Protect sends transactions directly to Jito block engines, aiming to reduce front-running and sandwich attacks. Users should be aware that such protection may occasionally slow or fail transactions, as not all validators run Jito engines.
Swap Summary and ExactOut: Jupiter displays a comprehensive summary of each trade, including minimum received and fee information. The “ExactOut” feature is also highlighted, which ensures receiving a set number of tokens while noting that this may result in less favorable pricing than the standard “ExactIn” method.
How Jupiter Swap Works
Jupiter Swap initially addressed the fragmentation of AMMs in Solana DeFi, offering a way to discover optimal prices across multiple sources. As Solana’s ecosystem expanded and more markets emerged, Jupiter adapted its infrastructure for greater scalability and to maintain user safeguards.
High-Level Process:
- New tokens and AMM markets are continuously indexed and become tradable immediately.
- After 14 days, each market undergoes periodic checks (every 30 minutes) to assess liquidity. Markets not meeting certain criteria are removed.
- Jupiter’s routing engine calculates the best possible quotes and applies user-defined settings and safeguards during execution.
Metis: The Routing Engine
Metis is Jupiter’s customised solution based on a variant of the Bellman-Ford algorithm. The Bellman-Ford algorithm begins by significantly underestimating the distance from the starting vertex to all other vertices. It then gradually refines these estimates through iterations, identifying shorter paths that improve upon the initially overestimated distances. It is optimised for Solana’s high-speed environment and is designed to identify optimal routes efficiently, even under dynamic network conditions.
Key Innovations in Metis:
- Incremental Route Building:
Routes are constructed incrementally, allowing the integration of multiple DEXs and intermediary tokens in complex trades to achieve improved prices. -
- Route Generation and Quoting Combined:
By merging these steps, Metis avoids inefficient paths and increases the likelihood of identifying better-priced routes. - Future-Ready Scalability:
Metis is prepared for upcoming Solana upgrades that may allow more than four DEXs per transaction and handle an expanding number of DeFi protocols.
Performance Improvements: Metis refreshes quotes in parallel and real time. Compared to previous versions, it generally provides more favorable prices, with improvements becoming more pronounced as trade sizes increase.
How Limit Orders Work
Jupiter’s limit orders execute trades at a user-defined price by tapping into on-chain liquidity on Solana. Once an order is placed, a keeper monitors token prices and, when the specified price target is reached, attempts to fill the order. If liquidity is limited, the keeper can complete the order in smaller portions to minimise price impact. Fulfilled orders—whether full or partial—are delivered directly to the user’s wallet.
Unlike traditional order-book models, Jupiter’s system does not aggregate all orders centrally. Instead, it relies on active monitoring of decentralised liquidity sources.
Key Advantages:
- Provides a centralised exchange-like experience with broad access to Solana’s liquidity.
- Users can set an expiry time for orders, automatically cancelling unfilled portions and refunding tokens at the end of the period.
- Ensures that the received amount matches the quoted price, eliminating slippage-related failures.
- Offers access to a wide range of token pairs, dependent on available liquidity.
- Protects users from MEV front-running.
Comparison with Central Limit Order Books (CLOBs):
CLOBs rely on active market makers to ensure efficient operations. In contrast, Jupiter’s limit orders utilise a wide range of DEXs and AMMs on Solana. Rather than depending on market-makers, Jupiter’s execution is triggered by the price meeting user-defined targets, drawing on liquidity from over 20 different DEXs and AMMs.
Technology Partners:
Birdeye and TradingView provide on-chain data and charting capabilities, supporting price analysis and informed decision-making.
DCA Explainer and Use Cases
DCA involves investing a set amount of capital into an asset at regular intervals, rather than making a single large purchase. This strategy mitigates the risk of buying at short-term peaks by spreading out cost exposure. Over time, DCA can reduce the average cost basis, potentially improving returns as markets fluctuate.
When to Use DCA:
- Bear Markets: Staggered buying throughout declining markets can secure lower average prices, positioning investors for gains if prices recover.
- Bull Market Profit-Taking: DCA can also be used to sell gradually in rising markets, reducing the risk of missing continued price increases or locking in profits too early.
- Splitting Large Orders: For substantial transactions or low-liquidity tokens, DCA minimises market impact by executing smaller trades over time.
Overall, DCA provides a systematic, less emotionally driven approach to accumulation and distribution of assets.
How Jupiter VA Works
VA is similar to DCA but adjusts the investment amount in response to price changes. Instead of investing a fixed amount at regular intervals, VA sets target portfolio values for each interval. When prices fall below the target, more capital is invested; when they rise above it, less is committed. This approach aims to enhance long-term outcomes by increasing exposure in lower-priced conditions and reducing it when prices are elevated.
VA Execution Mechanics:
- Users deposit the total intended investment amount into a dedicated VA vault.
- The first transaction occurs immediately after setup, with subsequent trades taking place at user-selected intervals.
- If prices dip, VA purchases more to reach the target value; if prices are high, the strategy invests less or not at all.
A 0.1% platform fee applies at each transaction. Tokens purchased are transferred automatically to the user’s wallet if the associated token account remains open. VA also includes timing variability in order placement and sets minimum acceptable output levels to reduce the likelihood of front-running and other adversarial tactics.
VA Explainer and Use Cases
VA sets a target portfolio value at each interval and invests amounts that bring the portfolio up to this value. It typically buys more when prices are low and less when prices are high, aiming to improve cost efficiency and potentially enhance returns over time.
When to Use VA:
- Volatile Markets: VA leverages volatility by allocating more capital during price downturns.
- Long-Term Strategies: This approach can serve both accumulation phases in declining markets and gradual profit-taking during ascending ones.
- Managing Large Orders and Low Liquidity: VA reduces the price impact associated with large trades and can improve execution quality in thinly traded markets.
In essence, VA dynamically responds to price changes, potentially offering more favorable average prices over long periods compared to fixed-amount strategies.
ApePro Overview
ApePro functions as a specialist terminal for trading memecoins on Solana, offering advanced performance and mobile-friendly features. It integrates key components such as:
- Ape Account Program:
Utilises Multiparty Computation and account abstraction technology, allowing users to log in via social accounts or traditional Web3 methods without seed phrases. It operates through a dedicated Solana program rather than a standard externally owned account . Users can activate an Ape Vault by depositing 0.1 SOL, and currently only SOL withdrawals are supported. - Discovering New Tokens:
Displays tokens launched within the past 24 hours, enabling users to buy or sell quickly without repeatedly signing transactions. Users can filter tokens by criteria such as those created via Pump.fun, developer mint counts, token authorities, and social links. - Hunt Gems Feed:
Provides a real-time listing of new and emerging tokens. Categories include newly created tokens, Pump.fun tokens nearing migration, and tokens that have migrated liquidity to Raydium. Users can perform rapid trades without signing each transaction. - Signless MEV-Protected Swaps:
Allows rapid, automated swaps without manual approvals, safeguarded against MEV attacks through Jito’s infrastructure. Intelligent fee adjustments and integration with Jupiter’s router ensure cost-effective, market-competitive trades. - Portfolio and Trading Tools:
Offers position tracking, PnL monitoring, and historical transaction summaries. Users can access real-time charts, compare token prices or market caps in SOL or USD, and view developer trade activity. Transaction histories and related data are also accessible. - Token Checklist:
Summarises key token risk indicators (e.g., whether liquidity pools are locked or burned, top 10 holders’ distribution, developer minting capabilities, and authorities to freeze or mint tokens).
ApePro Limit Order (v1)
ApePro’s limit order feature triggers market-executed trades once a target price or market cap is reached. When a user sets a target, the platform’s keeper monitors the token price and executes trades if the price conditions are met. This functionality supports four main strategies:
- Take Profit: Sells tokens once a higher price (or market cap) is reached.
- Stop Loss: Sells tokens if their price (or market cap) falls to a set threshold.
- Buy Dip: Buys tokens when their price (or market cap) declines to a lower specified point.
- Buy Above: Buys tokens once their price (or market cap) rises above a certain level.
The limit order interface allows users to set their orders and view open or historical orders, including reasons for failures such as expired orders or unachieved slippage requirements.
JLP Overview (Jupiter Liquidity Provider Pool)
The JLP pool underpins liquidity provision for Jupiter Perpetuals. It functions as a counterparty to traders, holding a basket of assets (SOL, ETH, WBTC, USDC, and USDT) and earning from a portion of generated trading fees.
- JLP Tokens:
Purchasing JLP tokens provides users with a proportional share of the pool’s value, which reflects asset appreciation and fee generation. Contributors receive embedded yield, updated hourly, without manual staking or harvesting. JLP tokens can be freely traded as SPL tokens. - Becoming a Liquidity Provider:
Anyone can acquire JLP tokens through Jupiter Swap, which will locate optimal routes to mint or buy these tokens. Fees apply based on the pool’s current asset weightings and market conditions. - Fee Revenue and APY:
The pool retains 75% of trading fees (from opening/closing positions, price impact, borrowing, and swaps), which are compounded back into the pool. The JLP APR is recalculated weekly based on the realised fees. Contributors can estimate their share of these fees proportionally to their contribution. - Mechanics of the Liquidity Pool:
Traders borrow from JLP assets to take leveraged positions. Instead of periodic funding payments, traders pay hourly borrow fees. This structure compensates LPs for providing liquidity. - Risks and Market Dynamics:
The JLP pool holds both stable and volatile assets. Market movements, trader profits/losses, and token price fluctuations influence the pool’s value. Short traders’ profits reduce stablecoin reserves, while long traders’ profits reduce volatile assets, affecting pool composition and potential returns. Asset weight targets are maintained through dynamic fee adjustments. In extreme cases (e.g., asset depegs), the pool’s design limits how far weightings can diverge from targets. - Target Weight and Rebalancing:
Each asset in the pool has a predefined target weight. When asset proportions shift, fees for depositing or withdrawing that asset adjust to encourage rebalancing. If an asset surpasses set bounds, depositing or withdrawing that asset may be restricted until it returns to a permissible range.
ApePro and Jupiter’s liquidity solutions provide a wide range of functionalities for traders and liquidity providers in the Solana ecosystem. ApePro focuses on user-friendly access to new and established tokens with MEV-protected, signless swaps and flexible order options, while JLP offers a mechanism for LPs to earn fees from perpetual trading activity. Both systems incorporate dynamic risk management measures, fee structures, and performance tracking, reflecting an evolving approach to decentralised trading and liquidity provision.
JupSOL Overview
JupSOL is a liquid staking token (LST) representing staked SOL within Jupiter’s validator infrastructure, managed by Triton. Issued through Sanctum, JupSOL allows holders to benefit from staking rewards, including 100% of MEV returns, without incurring typical fees such as management, commission, or withdrawal charges.
Core Mechanism
Users deposit SOL, which is then staked to the Jupiter validator. In return, they receive JupSOL tokens at an initial 1:1 ratio with SOL. Over time, as validator rewards accrue, the value of JupSOL gradually increases relative to SOL. By simply holding JupSOL, users earn staking rewards, effectively gaining exposure to the “risk-free” rate of return on SOL. Although JupSOL’s ratio to SOL continually rises, its absolute value in dollar terms may still fluctuate with the market price of SOL.
Source of Yield
JupSOL’s yield is derived from validator staking rewards, MEV kickbacks (returned entirely to JupSOL holders), and the Jupiter team’s initial SOL delegation, which is used to enhance the annual percentage yield. As a result, JupSOL may offer higher than average returns compared to other LSTs.
Fees and Security
JupSOL applies zero management, validator commission, or withdrawal fees. It does, however, impose a 0.1% SOL deposit fee intended to deter arbitrage attacks. The token is built on the SPL stake pool program, an audited and widely used system that has managed substantial amounts of staked SOL securely. A multisig authority, including representatives from Sanctum, Jupiter, Mango, marginfi, and Jito, oversees any changes, ensuring no single entity can unilaterally alter the program.
Benefits of Holding JupSOL
Holding JupSOL helps users earn staking-based returns while also receiving MEV-derived benefits. This positions JupSOL as a potentially more profitable alternative to standard staking. Additionally, by holding JupSOL, users contribute to Jupiter’s transaction inclusion rate, which may aid in maintaining efficient swapping and other DeFi operations during periods of network congestion.
This data highlights Jupiter’s significant footprint within the Solana ecosystem. The volume figure demonstrates the platform’s role in facilitating a vast amount of capital flow, while the number of swaps suggests high-frequency token exchange activity. The large number of traders underscores the platform’s widespread reach and accessibility, indicating that Jupiter has attracted a substantial and diverse user base.
Between September 2022 and December 2022, Jupiter’s swap activity remained relatively low, consistently below five million swaps per period. Throughout the first half of 2023, these figures began to climb, ultimately reaching a few million swaps per period. By late 2023, volumes had surpassed ten million swaps per period, reflecting a noticeable escalation in platform usage. This upward momentum continued into 2024, with regular intervals exceeding twenty million swaps, culminating in a peak phase during the latter half of the year when volumes approached or reached approximately forty million swaps per period. Overall, this progression illustrates a sustained and significant increase in the frequency of swaps executed on the Jupiter platform over the observed time frame.
Conclusion
Jupiter has established itself as a central component in Solana’s DeFi infrastructure, providing users and liquidity providers with a broad range of tools, strategies, and safeguards designed to enhance the trading experience. By integrating multiple DEXs and AMMs, Jupiter’s routing engine enables efficient, competitive pricing, while flexible configurations for swaps, limit orders, DCA, and VA solutions cater to different trading styles and investment goals. ApePro extends this functionality to memecoin markets, and JLP pools offer opportunities for liquidity providers to participate in fee-generated yields. Meanwhile, JupSOL illustrates how liquid staking can unlock additional value and flexibility for SOL holders. Taken together, these products and features highlight Jupiter’s ongoing commitment to delivering a secure, user-friendly, and innovative environment that continues to evolve alongside the growth of Solana’s DeFi ecosystem.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Jupiter is a decentralized exchange (DEX) aggregator on the Solana blockchain, designed to provide users with the best token swap rates by aggregating liquidity from multiple DEXs and automated market makers (AMMs) like Raydium, Serum, and Orca. Launched in 2021, Jupiter has become a key player in Solana's DeFi ecosystem, optimizing swaps and offering advanced trading features.
Jupiter’s governance token, JUP, is central to its ecosystem, empowering holders to influence platform developments and participate in governance decisions. Jupiter plays a critical role in the Solana DeFi landscape, combining liquidity aggregation with a comprehensive suite of trading tools to provide an efficient, accessible, and innovative platform for decentralised trading.
Below is an overview of Jupiter’s core products that we will explore further in this report
Spot Overview
Jupiter Spot is a platform for token trading on the Solana network. It utilises a universal routing algorithm, Jupiter Routing, which interacts with over 22 AMMs to identify favorable pricing for trades across the Solana ecosystem.
Jupiter Spot supports four primary methods for executing spot trades:
- Swap
- Limit Order (LO)
- Dollar-Cost Averaging (DCA)
- Value Averaging (VA)
Swap
The Swap function enables users to exchange any token on Solana at competitive prices with no additional platform fees. It automatically adjusts settings to reduce slippage, applies suitable priority fees, and provides warnings when necessary. Users can define their acceptable slippage limits and priority fee thresholds prior to executing a swap.
LO
Limit Orders allow users to set a specific price at which a trade will be executed. Once this target price is reached, the system attempts to fill the order at the exact specified rate. The user interface provides guidance on setting appropriate order parameters.
DCA
DCA schedules regular, automated trades at user-defined intervals (e.g., weekly or monthly), with a 0.1% fee per transaction. The system also includes features to retry failed orders and aims to reduce priority fees and slippage automatically.
VA
VA is similar to DCA but varies the investment amount based on price movements. When prices are low, it increases the purchase amount; when prices are high, it reduces the amount. This approach focuses on maintaining targeted portfolio growth rather than a fixed transaction size at each interval.
Swap Features
Solana is designed with trading in mind, offering high speed and low transaction costs. This environment supports a wide variety of tokens and markets, many of which Jupiter integrates into its platform.
Key Objectives of Jupiter as an Everyday Exchange:
- Access to Competitive Pricing:
Jupiter provides instant routing to newly launched tokens and markets, automatically incorporating them into its routing engine, Metis. Metis aims to secure favorable prices at no additional protocol fees. - Enhanced Token Safety and Information:
Jupiter’s interface displays key token data (e.g., metadata, authorities, verification status) and relevant trading information (e.g., price impact). Token search is refined by filtering out duplicates and imposter tokens, and by incorporating community feedback and live market data. - Frictionless Trading with Flexible Settings:
Users can configure transaction fees, slippage thresholds, and other parameters. An “Auto” mode provides optimised default settings, while “Manual” mode allows experienced users to customize slippage parameters, broadcast modes, fees, and advanced features. This includes options for MEV protection and routes that limit the types of intermediaries used.
Swap Settings Overview:
- Transaction Fees:
Solana requires a base fee for each transaction. As network usage increases, users can pay an optional priority fee to expedite transaction processing times. - Slippage:
Slippage refers to price changes occurring between quote and execution. Users can set acceptable slippage thresholds. If the price moves beyond these thresholds, the trade fails.
Jupiter continuously refines these settings to make the trading experience simpler and more reliable. Users can choose between Auto mode, which determines slippage and transaction fees dynamically, or Manual mode, which supports more granular adjustments.
Auto/Manual Swap Settings Modes:
- Auto Mode:
Recommended for beginners. Dynamic slippage and transaction fees are automatically calculated. Users can enable MEV protection, which directs transactions to Jito block engines to reduce the risk of front-running (sandwich attacks). - Manual Mode:
Designed for users who require finer control. Includes options for fixed or dynamic slippage, different broadcast modes (Priority Fee, Jito Only, or Both), and varying priority levels for faster execution. Manual mode also allows for advanced features like using direct routes only, wrapping SOL, and excluding certain AMMs.
Global Settings: Users can choose their preferred language, Solana explorer, transaction versioning, and custom RPC endpoints. Selecting endpoints with lower latency can improve trade execution times.
How to Trade Safely on Jupiter
Jupiter balances ease of use with informational safeguards. It highlights potential risks (e.g., large price impact, token verification status), displays relevant token details, and provides transaction summaries (e.g., minimum received, transaction fees, price differences).
MEV Protection: Enabling MEV Protect sends transactions directly to Jito block engines, aiming to reduce front-running and sandwich attacks. Users should be aware that such protection may occasionally slow or fail transactions, as not all validators run Jito engines.
Swap Summary and ExactOut: Jupiter displays a comprehensive summary of each trade, including minimum received and fee information. The “ExactOut” feature is also highlighted, which ensures receiving a set number of tokens while noting that this may result in less favorable pricing than the standard “ExactIn” method.
How Jupiter Swap Works
Jupiter Swap initially addressed the fragmentation of AMMs in Solana DeFi, offering a way to discover optimal prices across multiple sources. As Solana’s ecosystem expanded and more markets emerged, Jupiter adapted its infrastructure for greater scalability and to maintain user safeguards.
High-Level Process:
- New tokens and AMM markets are continuously indexed and become tradable immediately.
- After 14 days, each market undergoes periodic checks (every 30 minutes) to assess liquidity. Markets not meeting certain criteria are removed.
- Jupiter’s routing engine calculates the best possible quotes and applies user-defined settings and safeguards during execution.
Metis: The Routing Engine
Metis is Jupiter’s customised solution based on a variant of the Bellman-Ford algorithm. The Bellman-Ford algorithm begins by significantly underestimating the distance from the starting vertex to all other vertices. It then gradually refines these estimates through iterations, identifying shorter paths that improve upon the initially overestimated distances. It is optimised for Solana’s high-speed environment and is designed to identify optimal routes efficiently, even under dynamic network conditions.
Key Innovations in Metis:
- Incremental Route Building:
Routes are constructed incrementally, allowing the integration of multiple DEXs and intermediary tokens in complex trades to achieve improved prices. -
- Route Generation and Quoting Combined:
By merging these steps, Metis avoids inefficient paths and increases the likelihood of identifying better-priced routes. - Future-Ready Scalability:
Metis is prepared for upcoming Solana upgrades that may allow more than four DEXs per transaction and handle an expanding number of DeFi protocols.
Performance Improvements: Metis refreshes quotes in parallel and real time. Compared to previous versions, it generally provides more favorable prices, with improvements becoming more pronounced as trade sizes increase.
How Limit Orders Work
Jupiter’s limit orders execute trades at a user-defined price by tapping into on-chain liquidity on Solana. Once an order is placed, a keeper monitors token prices and, when the specified price target is reached, attempts to fill the order. If liquidity is limited, the keeper can complete the order in smaller portions to minimise price impact. Fulfilled orders—whether full or partial—are delivered directly to the user’s wallet.
Unlike traditional order-book models, Jupiter’s system does not aggregate all orders centrally. Instead, it relies on active monitoring of decentralised liquidity sources.
Key Advantages:
- Provides a centralised exchange-like experience with broad access to Solana’s liquidity.
- Users can set an expiry time for orders, automatically cancelling unfilled portions and refunding tokens at the end of the period.
- Ensures that the received amount matches the quoted price, eliminating slippage-related failures.
- Offers access to a wide range of token pairs, dependent on available liquidity.
- Protects users from MEV front-running.
Comparison with Central Limit Order Books (CLOBs):
CLOBs rely on active market makers to ensure efficient operations. In contrast, Jupiter’s limit orders utilise a wide range of DEXs and AMMs on Solana. Rather than depending on market-makers, Jupiter’s execution is triggered by the price meeting user-defined targets, drawing on liquidity from over 20 different DEXs and AMMs.
Technology Partners:
Birdeye and TradingView provide on-chain data and charting capabilities, supporting price analysis and informed decision-making.
DCA Explainer and Use Cases
DCA involves investing a set amount of capital into an asset at regular intervals, rather than making a single large purchase. This strategy mitigates the risk of buying at short-term peaks by spreading out cost exposure. Over time, DCA can reduce the average cost basis, potentially improving returns as markets fluctuate.
When to Use DCA:
- Bear Markets: Staggered buying throughout declining markets can secure lower average prices, positioning investors for gains if prices recover.
- Bull Market Profit-Taking: DCA can also be used to sell gradually in rising markets, reducing the risk of missing continued price increases or locking in profits too early.
- Splitting Large Orders: For substantial transactions or low-liquidity tokens, DCA minimises market impact by executing smaller trades over time.
Overall, DCA provides a systematic, less emotionally driven approach to accumulation and distribution of assets.
How Jupiter VA Works
VA is similar to DCA but adjusts the investment amount in response to price changes. Instead of investing a fixed amount at regular intervals, VA sets target portfolio values for each interval. When prices fall below the target, more capital is invested; when they rise above it, less is committed. This approach aims to enhance long-term outcomes by increasing exposure in lower-priced conditions and reducing it when prices are elevated.
VA Execution Mechanics:
- Users deposit the total intended investment amount into a dedicated VA vault.
- The first transaction occurs immediately after setup, with subsequent trades taking place at user-selected intervals.
- If prices dip, VA purchases more to reach the target value; if prices are high, the strategy invests less or not at all.
A 0.1% platform fee applies at each transaction. Tokens purchased are transferred automatically to the user’s wallet if the associated token account remains open. VA also includes timing variability in order placement and sets minimum acceptable output levels to reduce the likelihood of front-running and other adversarial tactics.
VA Explainer and Use Cases
VA sets a target portfolio value at each interval and invests amounts that bring the portfolio up to this value. It typically buys more when prices are low and less when prices are high, aiming to improve cost efficiency and potentially enhance returns over time.
When to Use VA:
- Volatile Markets: VA leverages volatility by allocating more capital during price downturns.
- Long-Term Strategies: This approach can serve both accumulation phases in declining markets and gradual profit-taking during ascending ones.
- Managing Large Orders and Low Liquidity: VA reduces the price impact associated with large trades and can improve execution quality in thinly traded markets.
In essence, VA dynamically responds to price changes, potentially offering more favorable average prices over long periods compared to fixed-amount strategies.
ApePro Overview
ApePro functions as a specialist terminal for trading memecoins on Solana, offering advanced performance and mobile-friendly features. It integrates key components such as:
- Ape Account Program:
Utilises Multiparty Computation and account abstraction technology, allowing users to log in via social accounts or traditional Web3 methods without seed phrases. It operates through a dedicated Solana program rather than a standard externally owned account . Users can activate an Ape Vault by depositing 0.1 SOL, and currently only SOL withdrawals are supported. - Discovering New Tokens:
Displays tokens launched within the past 24 hours, enabling users to buy or sell quickly without repeatedly signing transactions. Users can filter tokens by criteria such as those created via Pump.fun, developer mint counts, token authorities, and social links. - Hunt Gems Feed:
Provides a real-time listing of new and emerging tokens. Categories include newly created tokens, Pump.fun tokens nearing migration, and tokens that have migrated liquidity to Raydium. Users can perform rapid trades without signing each transaction. - Signless MEV-Protected Swaps:
Allows rapid, automated swaps without manual approvals, safeguarded against MEV attacks through Jito’s infrastructure. Intelligent fee adjustments and integration with Jupiter’s router ensure cost-effective, market-competitive trades. - Portfolio and Trading Tools:
Offers position tracking, PnL monitoring, and historical transaction summaries. Users can access real-time charts, compare token prices or market caps in SOL or USD, and view developer trade activity. Transaction histories and related data are also accessible. - Token Checklist:
Summarises key token risk indicators (e.g., whether liquidity pools are locked or burned, top 10 holders’ distribution, developer minting capabilities, and authorities to freeze or mint tokens).
ApePro Limit Order (v1)
ApePro’s limit order feature triggers market-executed trades once a target price or market cap is reached. When a user sets a target, the platform’s keeper monitors the token price and executes trades if the price conditions are met. This functionality supports four main strategies:
- Take Profit: Sells tokens once a higher price (or market cap) is reached.
- Stop Loss: Sells tokens if their price (or market cap) falls to a set threshold.
- Buy Dip: Buys tokens when their price (or market cap) declines to a lower specified point.
- Buy Above: Buys tokens once their price (or market cap) rises above a certain level.
The limit order interface allows users to set their orders and view open or historical orders, including reasons for failures such as expired orders or unachieved slippage requirements.
JLP Overview (Jupiter Liquidity Provider Pool)
The JLP pool underpins liquidity provision for Jupiter Perpetuals. It functions as a counterparty to traders, holding a basket of assets (SOL, ETH, WBTC, USDC, and USDT) and earning from a portion of generated trading fees.
- JLP Tokens:
Purchasing JLP tokens provides users with a proportional share of the pool’s value, which reflects asset appreciation and fee generation. Contributors receive embedded yield, updated hourly, without manual staking or harvesting. JLP tokens can be freely traded as SPL tokens. - Becoming a Liquidity Provider:
Anyone can acquire JLP tokens through Jupiter Swap, which will locate optimal routes to mint or buy these tokens. Fees apply based on the pool’s current asset weightings and market conditions. - Fee Revenue and APY:
The pool retains 75% of trading fees (from opening/closing positions, price impact, borrowing, and swaps), which are compounded back into the pool. The JLP APR is recalculated weekly based on the realised fees. Contributors can estimate their share of these fees proportionally to their contribution. - Mechanics of the Liquidity Pool:
Traders borrow from JLP assets to take leveraged positions. Instead of periodic funding payments, traders pay hourly borrow fees. This structure compensates LPs for providing liquidity. - Risks and Market Dynamics:
The JLP pool holds both stable and volatile assets. Market movements, trader profits/losses, and token price fluctuations influence the pool’s value. Short traders’ profits reduce stablecoin reserves, while long traders’ profits reduce volatile assets, affecting pool composition and potential returns. Asset weight targets are maintained through dynamic fee adjustments. In extreme cases (e.g., asset depegs), the pool’s design limits how far weightings can diverge from targets. - Target Weight and Rebalancing:
Each asset in the pool has a predefined target weight. When asset proportions shift, fees for depositing or withdrawing that asset adjust to encourage rebalancing. If an asset surpasses set bounds, depositing or withdrawing that asset may be restricted until it returns to a permissible range.
ApePro and Jupiter’s liquidity solutions provide a wide range of functionalities for traders and liquidity providers in the Solana ecosystem. ApePro focuses on user-friendly access to new and established tokens with MEV-protected, signless swaps and flexible order options, while JLP offers a mechanism for LPs to earn fees from perpetual trading activity. Both systems incorporate dynamic risk management measures, fee structures, and performance tracking, reflecting an evolving approach to decentralised trading and liquidity provision.
JupSOL Overview
JupSOL is a liquid staking token (LST) representing staked SOL within Jupiter’s validator infrastructure, managed by Triton. Issued through Sanctum, JupSOL allows holders to benefit from staking rewards, including 100% of MEV returns, without incurring typical fees such as management, commission, or withdrawal charges.
Core Mechanism
Users deposit SOL, which is then staked to the Jupiter validator. In return, they receive JupSOL tokens at an initial 1:1 ratio with SOL. Over time, as validator rewards accrue, the value of JupSOL gradually increases relative to SOL. By simply holding JupSOL, users earn staking rewards, effectively gaining exposure to the “risk-free” rate of return on SOL. Although JupSOL’s ratio to SOL continually rises, its absolute value in dollar terms may still fluctuate with the market price of SOL.
Source of Yield
JupSOL’s yield is derived from validator staking rewards, MEV kickbacks (returned entirely to JupSOL holders), and the Jupiter team’s initial SOL delegation, which is used to enhance the annual percentage yield. As a result, JupSOL may offer higher than average returns compared to other LSTs.
Fees and Security
JupSOL applies zero management, validator commission, or withdrawal fees. It does, however, impose a 0.1% SOL deposit fee intended to deter arbitrage attacks. The token is built on the SPL stake pool program, an audited and widely used system that has managed substantial amounts of staked SOL securely. A multisig authority, including representatives from Sanctum, Jupiter, Mango, marginfi, and Jito, oversees any changes, ensuring no single entity can unilaterally alter the program.
Benefits of Holding JupSOL
Holding JupSOL helps users earn staking-based returns while also receiving MEV-derived benefits. This positions JupSOL as a potentially more profitable alternative to standard staking. Additionally, by holding JupSOL, users contribute to Jupiter’s transaction inclusion rate, which may aid in maintaining efficient swapping and other DeFi operations during periods of network congestion.
This data highlights Jupiter’s significant footprint within the Solana ecosystem. The volume figure demonstrates the platform’s role in facilitating a vast amount of capital flow, while the number of swaps suggests high-frequency token exchange activity. The large number of traders underscores the platform’s widespread reach and accessibility, indicating that Jupiter has attracted a substantial and diverse user base.
Between September 2022 and December 2022, Jupiter’s swap activity remained relatively low, consistently below five million swaps per period. Throughout the first half of 2023, these figures began to climb, ultimately reaching a few million swaps per period. By late 2023, volumes had surpassed ten million swaps per period, reflecting a noticeable escalation in platform usage. This upward momentum continued into 2024, with regular intervals exceeding twenty million swaps, culminating in a peak phase during the latter half of the year when volumes approached or reached approximately forty million swaps per period. Overall, this progression illustrates a sustained and significant increase in the frequency of swaps executed on the Jupiter platform over the observed time frame.
Conclusion
Jupiter has established itself as a central component in Solana’s DeFi infrastructure, providing users and liquidity providers with a broad range of tools, strategies, and safeguards designed to enhance the trading experience. By integrating multiple DEXs and AMMs, Jupiter’s routing engine enables efficient, competitive pricing, while flexible configurations for swaps, limit orders, DCA, and VA solutions cater to different trading styles and investment goals. ApePro extends this functionality to memecoin markets, and JLP pools offer opportunities for liquidity providers to participate in fee-generated yields. Meanwhile, JupSOL illustrates how liquid staking can unlock additional value and flexibility for SOL holders. Taken together, these products and features highlight Jupiter’s ongoing commitment to delivering a secure, user-friendly, and innovative environment that continues to evolve alongside the growth of Solana’s DeFi ecosystem.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Jupiter is a decentralized exchange (DEX) aggregator on the Solana blockchain, designed to provide users with the best token swap rates by aggregating liquidity from multiple DEXs and automated market makers (AMMs) like Raydium, Serum, and Orca. Launched in 2021, Jupiter has become a key player in Solana's DeFi ecosystem, optimizing swaps and offering advanced trading features.
Jupiter’s governance token, JUP, is central to its ecosystem, empowering holders to influence platform developments and participate in governance decisions. Jupiter plays a critical role in the Solana DeFi landscape, combining liquidity aggregation with a comprehensive suite of trading tools to provide an efficient, accessible, and innovative platform for decentralised trading.
Below is an overview of Jupiter’s core products that we will explore further in this report
Spot Overview
Jupiter Spot is a platform for token trading on the Solana network. It utilises a universal routing algorithm, Jupiter Routing, which interacts with over 22 AMMs to identify favorable pricing for trades across the Solana ecosystem.
Jupiter Spot supports four primary methods for executing spot trades:
- Swap
- Limit Order (LO)
- Dollar-Cost Averaging (DCA)
- Value Averaging (VA)
Swap
The Swap function enables users to exchange any token on Solana at competitive prices with no additional platform fees. It automatically adjusts settings to reduce slippage, applies suitable priority fees, and provides warnings when necessary. Users can define their acceptable slippage limits and priority fee thresholds prior to executing a swap.
LO
Limit Orders allow users to set a specific price at which a trade will be executed. Once this target price is reached, the system attempts to fill the order at the exact specified rate. The user interface provides guidance on setting appropriate order parameters.
DCA
DCA schedules regular, automated trades at user-defined intervals (e.g., weekly or monthly), with a 0.1% fee per transaction. The system also includes features to retry failed orders and aims to reduce priority fees and slippage automatically.
VA
VA is similar to DCA but varies the investment amount based on price movements. When prices are low, it increases the purchase amount; when prices are high, it reduces the amount. This approach focuses on maintaining targeted portfolio growth rather than a fixed transaction size at each interval.
Swap Features
Solana is designed with trading in mind, offering high speed and low transaction costs. This environment supports a wide variety of tokens and markets, many of which Jupiter integrates into its platform.
Key Objectives of Jupiter as an Everyday Exchange:
- Access to Competitive Pricing:
Jupiter provides instant routing to newly launched tokens and markets, automatically incorporating them into its routing engine, Metis. Metis aims to secure favorable prices at no additional protocol fees. - Enhanced Token Safety and Information:
Jupiter’s interface displays key token data (e.g., metadata, authorities, verification status) and relevant trading information (e.g., price impact). Token search is refined by filtering out duplicates and imposter tokens, and by incorporating community feedback and live market data. - Frictionless Trading with Flexible Settings:
Users can configure transaction fees, slippage thresholds, and other parameters. An “Auto” mode provides optimised default settings, while “Manual” mode allows experienced users to customize slippage parameters, broadcast modes, fees, and advanced features. This includes options for MEV protection and routes that limit the types of intermediaries used.
Swap Settings Overview:
- Transaction Fees:
Solana requires a base fee for each transaction. As network usage increases, users can pay an optional priority fee to expedite transaction processing times. - Slippage:
Slippage refers to price changes occurring between quote and execution. Users can set acceptable slippage thresholds. If the price moves beyond these thresholds, the trade fails.
Jupiter continuously refines these settings to make the trading experience simpler and more reliable. Users can choose between Auto mode, which determines slippage and transaction fees dynamically, or Manual mode, which supports more granular adjustments.
Auto/Manual Swap Settings Modes:
- Auto Mode:
Recommended for beginners. Dynamic slippage and transaction fees are automatically calculated. Users can enable MEV protection, which directs transactions to Jito block engines to reduce the risk of front-running (sandwich attacks). - Manual Mode:
Designed for users who require finer control. Includes options for fixed or dynamic slippage, different broadcast modes (Priority Fee, Jito Only, or Both), and varying priority levels for faster execution. Manual mode also allows for advanced features like using direct routes only, wrapping SOL, and excluding certain AMMs.
Global Settings: Users can choose their preferred language, Solana explorer, transaction versioning, and custom RPC endpoints. Selecting endpoints with lower latency can improve trade execution times.
How to Trade Safely on Jupiter
Jupiter balances ease of use with informational safeguards. It highlights potential risks (e.g., large price impact, token verification status), displays relevant token details, and provides transaction summaries (e.g., minimum received, transaction fees, price differences).
MEV Protection: Enabling MEV Protect sends transactions directly to Jito block engines, aiming to reduce front-running and sandwich attacks. Users should be aware that such protection may occasionally slow or fail transactions, as not all validators run Jito engines.
Swap Summary and ExactOut: Jupiter displays a comprehensive summary of each trade, including minimum received and fee information. The “ExactOut” feature is also highlighted, which ensures receiving a set number of tokens while noting that this may result in less favorable pricing than the standard “ExactIn” method.
How Jupiter Swap Works
Jupiter Swap initially addressed the fragmentation of AMMs in Solana DeFi, offering a way to discover optimal prices across multiple sources. As Solana’s ecosystem expanded and more markets emerged, Jupiter adapted its infrastructure for greater scalability and to maintain user safeguards.
High-Level Process:
- New tokens and AMM markets are continuously indexed and become tradable immediately.
- After 14 days, each market undergoes periodic checks (every 30 minutes) to assess liquidity. Markets not meeting certain criteria are removed.
- Jupiter’s routing engine calculates the best possible quotes and applies user-defined settings and safeguards during execution.
Metis: The Routing Engine
Metis is Jupiter’s customised solution based on a variant of the Bellman-Ford algorithm. The Bellman-Ford algorithm begins by significantly underestimating the distance from the starting vertex to all other vertices. It then gradually refines these estimates through iterations, identifying shorter paths that improve upon the initially overestimated distances. It is optimised for Solana’s high-speed environment and is designed to identify optimal routes efficiently, even under dynamic network conditions.
Key Innovations in Metis:
- Incremental Route Building:
Routes are constructed incrementally, allowing the integration of multiple DEXs and intermediary tokens in complex trades to achieve improved prices. -
- Route Generation and Quoting Combined:
By merging these steps, Metis avoids inefficient paths and increases the likelihood of identifying better-priced routes. - Future-Ready Scalability:
Metis is prepared for upcoming Solana upgrades that may allow more than four DEXs per transaction and handle an expanding number of DeFi protocols.
Performance Improvements: Metis refreshes quotes in parallel and real time. Compared to previous versions, it generally provides more favorable prices, with improvements becoming more pronounced as trade sizes increase.
How Limit Orders Work
Jupiter’s limit orders execute trades at a user-defined price by tapping into on-chain liquidity on Solana. Once an order is placed, a keeper monitors token prices and, when the specified price target is reached, attempts to fill the order. If liquidity is limited, the keeper can complete the order in smaller portions to minimise price impact. Fulfilled orders—whether full or partial—are delivered directly to the user’s wallet.
Unlike traditional order-book models, Jupiter’s system does not aggregate all orders centrally. Instead, it relies on active monitoring of decentralised liquidity sources.
Key Advantages:
- Provides a centralised exchange-like experience with broad access to Solana’s liquidity.
- Users can set an expiry time for orders, automatically cancelling unfilled portions and refunding tokens at the end of the period.
- Ensures that the received amount matches the quoted price, eliminating slippage-related failures.
- Offers access to a wide range of token pairs, dependent on available liquidity.
- Protects users from MEV front-running.
Comparison with Central Limit Order Books (CLOBs):
CLOBs rely on active market makers to ensure efficient operations. In contrast, Jupiter’s limit orders utilise a wide range of DEXs and AMMs on Solana. Rather than depending on market-makers, Jupiter’s execution is triggered by the price meeting user-defined targets, drawing on liquidity from over 20 different DEXs and AMMs.
Technology Partners:
Birdeye and TradingView provide on-chain data and charting capabilities, supporting price analysis and informed decision-making.
DCA Explainer and Use Cases
DCA involves investing a set amount of capital into an asset at regular intervals, rather than making a single large purchase. This strategy mitigates the risk of buying at short-term peaks by spreading out cost exposure. Over time, DCA can reduce the average cost basis, potentially improving returns as markets fluctuate.
When to Use DCA:
- Bear Markets: Staggered buying throughout declining markets can secure lower average prices, positioning investors for gains if prices recover.
- Bull Market Profit-Taking: DCA can also be used to sell gradually in rising markets, reducing the risk of missing continued price increases or locking in profits too early.
- Splitting Large Orders: For substantial transactions or low-liquidity tokens, DCA minimises market impact by executing smaller trades over time.
Overall, DCA provides a systematic, less emotionally driven approach to accumulation and distribution of assets.
How Jupiter VA Works
VA is similar to DCA but adjusts the investment amount in response to price changes. Instead of investing a fixed amount at regular intervals, VA sets target portfolio values for each interval. When prices fall below the target, more capital is invested; when they rise above it, less is committed. This approach aims to enhance long-term outcomes by increasing exposure in lower-priced conditions and reducing it when prices are elevated.
VA Execution Mechanics:
- Users deposit the total intended investment amount into a dedicated VA vault.
- The first transaction occurs immediately after setup, with subsequent trades taking place at user-selected intervals.
- If prices dip, VA purchases more to reach the target value; if prices are high, the strategy invests less or not at all.
A 0.1% platform fee applies at each transaction. Tokens purchased are transferred automatically to the user’s wallet if the associated token account remains open. VA also includes timing variability in order placement and sets minimum acceptable output levels to reduce the likelihood of front-running and other adversarial tactics.
VA Explainer and Use Cases
VA sets a target portfolio value at each interval and invests amounts that bring the portfolio up to this value. It typically buys more when prices are low and less when prices are high, aiming to improve cost efficiency and potentially enhance returns over time.
When to Use VA:
- Volatile Markets: VA leverages volatility by allocating more capital during price downturns.
- Long-Term Strategies: This approach can serve both accumulation phases in declining markets and gradual profit-taking during ascending ones.
- Managing Large Orders and Low Liquidity: VA reduces the price impact associated with large trades and can improve execution quality in thinly traded markets.
In essence, VA dynamically responds to price changes, potentially offering more favorable average prices over long periods compared to fixed-amount strategies.
ApePro Overview
ApePro functions as a specialist terminal for trading memecoins on Solana, offering advanced performance and mobile-friendly features. It integrates key components such as:
- Ape Account Program:
Utilises Multiparty Computation and account abstraction technology, allowing users to log in via social accounts or traditional Web3 methods without seed phrases. It operates through a dedicated Solana program rather than a standard externally owned account . Users can activate an Ape Vault by depositing 0.1 SOL, and currently only SOL withdrawals are supported. - Discovering New Tokens:
Displays tokens launched within the past 24 hours, enabling users to buy or sell quickly without repeatedly signing transactions. Users can filter tokens by criteria such as those created via Pump.fun, developer mint counts, token authorities, and social links. - Hunt Gems Feed:
Provides a real-time listing of new and emerging tokens. Categories include newly created tokens, Pump.fun tokens nearing migration, and tokens that have migrated liquidity to Raydium. Users can perform rapid trades without signing each transaction. - Signless MEV-Protected Swaps:
Allows rapid, automated swaps without manual approvals, safeguarded against MEV attacks through Jito’s infrastructure. Intelligent fee adjustments and integration with Jupiter’s router ensure cost-effective, market-competitive trades. - Portfolio and Trading Tools:
Offers position tracking, PnL monitoring, and historical transaction summaries. Users can access real-time charts, compare token prices or market caps in SOL or USD, and view developer trade activity. Transaction histories and related data are also accessible. - Token Checklist:
Summarises key token risk indicators (e.g., whether liquidity pools are locked or burned, top 10 holders’ distribution, developer minting capabilities, and authorities to freeze or mint tokens).
ApePro Limit Order (v1)
ApePro’s limit order feature triggers market-executed trades once a target price or market cap is reached. When a user sets a target, the platform’s keeper monitors the token price and executes trades if the price conditions are met. This functionality supports four main strategies:
- Take Profit: Sells tokens once a higher price (or market cap) is reached.
- Stop Loss: Sells tokens if their price (or market cap) falls to a set threshold.
- Buy Dip: Buys tokens when their price (or market cap) declines to a lower specified point.
- Buy Above: Buys tokens once their price (or market cap) rises above a certain level.
The limit order interface allows users to set their orders and view open or historical orders, including reasons for failures such as expired orders or unachieved slippage requirements.
JLP Overview (Jupiter Liquidity Provider Pool)
The JLP pool underpins liquidity provision for Jupiter Perpetuals. It functions as a counterparty to traders, holding a basket of assets (SOL, ETH, WBTC, USDC, and USDT) and earning from a portion of generated trading fees.
- JLP Tokens:
Purchasing JLP tokens provides users with a proportional share of the pool’s value, which reflects asset appreciation and fee generation. Contributors receive embedded yield, updated hourly, without manual staking or harvesting. JLP tokens can be freely traded as SPL tokens. - Becoming a Liquidity Provider:
Anyone can acquire JLP tokens through Jupiter Swap, which will locate optimal routes to mint or buy these tokens. Fees apply based on the pool’s current asset weightings and market conditions. - Fee Revenue and APY:
The pool retains 75% of trading fees (from opening/closing positions, price impact, borrowing, and swaps), which are compounded back into the pool. The JLP APR is recalculated weekly based on the realised fees. Contributors can estimate their share of these fees proportionally to their contribution. - Mechanics of the Liquidity Pool:
Traders borrow from JLP assets to take leveraged positions. Instead of periodic funding payments, traders pay hourly borrow fees. This structure compensates LPs for providing liquidity. - Risks and Market Dynamics:
The JLP pool holds both stable and volatile assets. Market movements, trader profits/losses, and token price fluctuations influence the pool’s value. Short traders’ profits reduce stablecoin reserves, while long traders’ profits reduce volatile assets, affecting pool composition and potential returns. Asset weight targets are maintained through dynamic fee adjustments. In extreme cases (e.g., asset depegs), the pool’s design limits how far weightings can diverge from targets. - Target Weight and Rebalancing:
Each asset in the pool has a predefined target weight. When asset proportions shift, fees for depositing or withdrawing that asset adjust to encourage rebalancing. If an asset surpasses set bounds, depositing or withdrawing that asset may be restricted until it returns to a permissible range.
ApePro and Jupiter’s liquidity solutions provide a wide range of functionalities for traders and liquidity providers in the Solana ecosystem. ApePro focuses on user-friendly access to new and established tokens with MEV-protected, signless swaps and flexible order options, while JLP offers a mechanism for LPs to earn fees from perpetual trading activity. Both systems incorporate dynamic risk management measures, fee structures, and performance tracking, reflecting an evolving approach to decentralised trading and liquidity provision.
JupSOL Overview
JupSOL is a liquid staking token (LST) representing staked SOL within Jupiter’s validator infrastructure, managed by Triton. Issued through Sanctum, JupSOL allows holders to benefit from staking rewards, including 100% of MEV returns, without incurring typical fees such as management, commission, or withdrawal charges.
Core Mechanism
Users deposit SOL, which is then staked to the Jupiter validator. In return, they receive JupSOL tokens at an initial 1:1 ratio with SOL. Over time, as validator rewards accrue, the value of JupSOL gradually increases relative to SOL. By simply holding JupSOL, users earn staking rewards, effectively gaining exposure to the “risk-free” rate of return on SOL. Although JupSOL’s ratio to SOL continually rises, its absolute value in dollar terms may still fluctuate with the market price of SOL.
Source of Yield
JupSOL’s yield is derived from validator staking rewards, MEV kickbacks (returned entirely to JupSOL holders), and the Jupiter team’s initial SOL delegation, which is used to enhance the annual percentage yield. As a result, JupSOL may offer higher than average returns compared to other LSTs.
Fees and Security
JupSOL applies zero management, validator commission, or withdrawal fees. It does, however, impose a 0.1% SOL deposit fee intended to deter arbitrage attacks. The token is built on the SPL stake pool program, an audited and widely used system that has managed substantial amounts of staked SOL securely. A multisig authority, including representatives from Sanctum, Jupiter, Mango, marginfi, and Jito, oversees any changes, ensuring no single entity can unilaterally alter the program.
Benefits of Holding JupSOL
Holding JupSOL helps users earn staking-based returns while also receiving MEV-derived benefits. This positions JupSOL as a potentially more profitable alternative to standard staking. Additionally, by holding JupSOL, users contribute to Jupiter’s transaction inclusion rate, which may aid in maintaining efficient swapping and other DeFi operations during periods of network congestion.
This data highlights Jupiter’s significant footprint within the Solana ecosystem. The volume figure demonstrates the platform’s role in facilitating a vast amount of capital flow, while the number of swaps suggests high-frequency token exchange activity. The large number of traders underscores the platform’s widespread reach and accessibility, indicating that Jupiter has attracted a substantial and diverse user base.
Between September 2022 and December 2022, Jupiter’s swap activity remained relatively low, consistently below five million swaps per period. Throughout the first half of 2023, these figures began to climb, ultimately reaching a few million swaps per period. By late 2023, volumes had surpassed ten million swaps per period, reflecting a noticeable escalation in platform usage. This upward momentum continued into 2024, with regular intervals exceeding twenty million swaps, culminating in a peak phase during the latter half of the year when volumes approached or reached approximately forty million swaps per period. Overall, this progression illustrates a sustained and significant increase in the frequency of swaps executed on the Jupiter platform over the observed time frame.
Conclusion
Jupiter has established itself as a central component in Solana’s DeFi infrastructure, providing users and liquidity providers with a broad range of tools, strategies, and safeguards designed to enhance the trading experience. By integrating multiple DEXs and AMMs, Jupiter’s routing engine enables efficient, competitive pricing, while flexible configurations for swaps, limit orders, DCA, and VA solutions cater to different trading styles and investment goals. ApePro extends this functionality to memecoin markets, and JLP pools offer opportunities for liquidity providers to participate in fee-generated yields. Meanwhile, JupSOL illustrates how liquid staking can unlock additional value and flexibility for SOL holders. Taken together, these products and features highlight Jupiter’s ongoing commitment to delivering a secure, user-friendly, and innovative environment that continues to evolve alongside the growth of Solana’s DeFi ecosystem.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
