Jupiter Markets Update: 7-Day Insights
Summary
Gauntlet is regularly posting rolling seven-day market updates to notify the Jupiter community about:
- Trader PnLs - signaling the health of the ecosystem and market dynamics;
- Market competitiveness with Binance (leading CEX) - indicating Jupiter’s position against the most liquid venue for trading perpetuals;
- JLP price and Sharpe ratio vs JLP index - demonstrating JLP’s attractiveness compared to a weighted asset index.
These seven-day market updates aim to inform the Jupiter community about the health of the perpetual ecosystem through metrics not currently tracked on our live dashboard (Risk Dashboard ). This complementary information provides a more comprehensive view of Jupiter’s market performance and ecosystem dynamics.
Analysis
SOL PnL
| • | Win Rate: 50.2% (WoW: +2.7%) | |
|---|---|---|
| • | Net PnL: $4.04M (WoW: +361.3%) | |
| • | Gross PnL: $7.94M (WoW: +87.7%) |
Traders have continued to see significant success on SOL trades this week, with a strong 50.2% win rate and net PnL of over $4M (+361.3% WoW). Gross PnL shows positive trends, highlighting the strong performance of traders in SOL markets. The overall win rate improved by 2.7%, primarily driven by the continued market rally. Gauntlet will keep evaluating positive PnL performance on any suspicious activity.
To investigate the origins of increased PnL, we reviewed the PnL % chart. This chart is a much better tool for identifying potential abnormal trading behavior because it normalizes the profit or loss based on the position’s value at the time it was created.
Trading volume also increased on September 25 as SOL rallied from $148 to $155. Gauntlet concludes this was a healthy protocol performance, with traders taking advantage of the SOL rally. No action is needed now; however, we will continue analyzing individual trader PnL to ensure the JLP ecosystem remains safe.
SOL Competitiveness with Binance
All-in Trading Fees: The chart shows that Binance has lower trading fees across all trade sizes compared to Jupiter, ranging from smaller trades ($400,000) up to larger ones ($2.5M). Binance’s trading fees are lower by a few basis points, making it more cost-effective for traders across the board.
• Long Funding/Borrow Rates: The funding rate for Jupiter is higher, hovering around 35% to 40%, compared to Binance, which stays below 10% during the same period. This makes Binance much more favorable for traders who plan to hold long positions.
• All-in Costs Relative to Binance: In the heatmap, Jupiter’s all-in costs exceed Binance’s for all holding periods and trade sizes. The discrepancy grows for larger trades and longer holding periods, where Binance remains more cost-efficient. For a $2.5M order held for 120 hours, Jupiter’s all-in cost is 0.45% higher than Binance’s.
WoW Change:
• Jupiter’s competitive advantage has decreased WoW, particularly in larger orders and longer holding periods, where Binance continues to dominate.
BTC PnL
• Win Rate: 48.1% (WoW: +0.9%)
• Net PnL: -$25.43K (WoW: -103.9%)
• Gross PnL: $845.42K (WoW: -36.4%)
BTC trading had a slight improvement in win rate (+0.9%) but a significant deterioration in net PnL, which has fallen 103.9% WoW. Gross PnL also took a hit, dropping by 36.4%, signaling that BTC trades are struggling to maintain profitability.
BTC Competitiveness with Binance
• WoW Change: There have been no significant changes in BTC’s competitiveness with Binance. BTC liquidity on Binance remains strong and slippage is more competitive than Jupiter’s price impact fees, that’s why Gauntlet recommends increasing the price impact scalar for BTC to reduce slippage/price impact fees.
ETH PnL Chart
• Win Rate: 46.8% (WoW: -2.1%)
• Net PnL: -$101.86K (WoW: -181.5%)
• Gross PnL: $167.94K (WoW: -34.4%)
Analysis:
ETH traders continue to struggle, with a further drop in net PnL (down 181.5% WoW) and gross PnL (down 34.4%). The win rate also decreased by 2.1%.
ETH Competitiveness with Binance
• WoW Change: Jupiter remains competitive for larger trades and shorter holding periods, especially for trade sizes above $1M. However, Binance holds the advantage for smaller trades and longer holding periods, as reflected in the all-in costs comparison.
Implication:
Jupiter needs to fine-tune its price impact fee structure to align with ETH slippage on Binance. Gauntlet produced a cut with updated scalar params and suggested decreasing ETH impact scalar.
JLP Price vs. Index
• Price Performance: JLP continues to outperform its index, supported by favorable market conditions and reduced volatility.
• Sharpe Ratio: JLP maintained a higher Sharpe ratio than the index, reflecting strong risk-adjusted returns for liquidity providers.
WoW Change: The JLP price outpaced the index this week by a similar margin as the previous week, signaling continued health of the JLP ecosystem and mechanics.
Closing Thoughts
Updating the price impact fee structure remains a priority. Gauntlet will follow up soon with updated base fees and borrow fee recommendations as well.
If you have any questions about our current methodology, please contact @riskringer on Telegram or Twitter.
To view our live dashboard with other important metrics, follow this link .