Chaos Labs is thrilled to announce our strategic partnership with Jupiter, a non-custodial DEX aggregator and perpetual futures exchange on Solana. Our partnership represents a deep commitment to enhancing protocol resiliency and growth, striving to fortify Jupiter’s market position and cultivate a safer, more robust trading environment.
Parameter Optimization
We will optimize protocol risk parameters through agent-based simulations. These parameters will also account for market configurations on competing protocols and centralized exchanges to ensure Jupiter retains a competitive edge and counteracts potential assaults such as basis trading. Our initiative ensures Jupiter’s parameters foster capital efficiency, minimalize unhealthy liquidations, and protect against bad debt, all while maintaining a transparent dialogue with the community about the trade-offs involved.
| Parameter | Definition |
|---|---|
| Open & Close Position Fees | Fees for position opening/closing |
| Borrowing Fees | Fees paid by perpetual traders throughout the positions’ lifetime for borrowing reserves from the pool |
| Max Position Size | Maximum size of a position |
| Max Leverage | The maximum allowed leverage in every market |
| Open Interest Limit | The maximum OI for long and short positions across the protocol |
| JLP Mint & Withdrawal Fees | Fees for minting and withdrawing into/from the pool |
| AUM Limit | The maximum size of the pool |
| Spot Swap Fees | Swap fees for trading spot assets in the JLP |
| Target Index Weight | Target weight of every asset in the JLP |
Risk Platform
The Jupiter Risk Platform will offer a comprehensive suite of tools for monitoring protocol and account health in real-time. This includes custom dashboards and an integrated alert system to identify and respond to potential risks promptly. Our commitment to enhancing the platform with ongoing feedback ensures it remains the foremost resource for trading data, fostering a secure and growth-oriented ecosystem.
By granting the Jupiter community access to a publicly available platform for protocol health monitoring, Chaos Labs empowers users with the tools to understand and navigate the ecosystem’s intricacies. This platform not only facilitates detailed risk analysis but also ensures users are alerted to on-chain activities that may impact protocol stability, promoting proactive engagement and decision-making.
The Overview tab will enable visibility across key platform metrics, focusing on indicators of protocol health.
The Positions tab will allow account tracking and live monitoring of position health.
Oracle Analysis
Jupiter’s perpetual markets necessitate high-fidelity, low-latency price feeds to uphold platform integrity while delivering an optimal user experience and minimizing potential avenues of economic exploitation. Chaos Labs will deploy a monitoring system to ensure the continuous performance of Jupiter’s price feeds, analyzing price composition, availability, latency, precision, and manipulation risk.
Working on behalf of the protocol, we ensure the standard and security of price feeds across assets and attach price monitoring and anomaly detection tools for continuous 24/7 market surveillance.
Forward Together
As we embark on this exciting journey with Jupiter, our focus remains on advancing the safety, efficiency, and transparency of the DeFi ecosystem. This partnership is not just about facing current challenges but about pioneering the future of the on-chain perpetuals market. Stay tuned for more updates as we continue to push the boundaries of what’s possible in DeFi risk management and security.
Additionally, we are excited to collaborate closely with Jupiter to design new features that will further benefit the protocol. As we progress, we stand ready to introduce new parameters alongside the ones we recommend, ensuring a dynamic and adaptable framework that remains at the forefront of DeFi risk management and security.
About Chaos Labs
Chaos Labs is a pioneer in perpetual exchange risk management. We are fortunate enough to manage risk, collaborate on mechanism design, parameter optimization and develop liquidity incentive programs with many of the leading on-chain perpetual exchanges, including dYdX, GMX, Vertex, SynFutures, Bluefin, Ostium, and more.
Our team is comprised of esteemed researchers, engineers, and security professionals, including members who have served in esteemed cyber-intelligence and security units like Israel’s 8200 units, Talpiot, and the Ministry of Defense Financial Strategy Office, using algorithms to detect incoming missiles with satellite imagery, building pipeline systems at scale to ingest all incoming data from Israeli satellites, and developing mission critical infrastructure responsible for nation-scale internet traffic.
