Summary
- Over the past week, the protocol’s volume decreased by just 3.86%, averaging $430.8M per day, compared to $448.1M on average in the three weeks prior.
- In the same span, SOL’s price increased by 13.41%, ETH’s price increased by 11.40%, and BTC’s price increased by 9.96%. JLP increased by 3.39% vs. the JLP basket’s 8.38%, representing an impermanent loss of 4.99% for LPs relative to the JLP pool’s underlying assets after several weeks of outperformance.
- Jupiter traders’ aggregate realized PnL increased by $10.9M in gross terms and decreased by $2.3M in net terms due to their long-favored exposure. Traders’ cumulative unrealized PnLs, meanwhile, increased by $17.4M this week.
Protocol level
JLP Pool
The JLP pool held relatively steady in nominal terms this week, with SOL deposits falling the most and stablecoin deposits rising the most.
The pool’s composition also hemmed close to target. SOL utilization fell.
JLP Market Comparison
JLP’s market price increased by 3.39% over the last week. In the same period, BTC increased by 9.96%, ETH increased by 11.40%, and SOL increased by 13.41%.
Given the JLP pool’s weights:
- SOL - 45.84%
- WBTC - 11.27%
- WETH - 9.71%
- USDC - 24.5%
- USDT - 8.68%
JLP’s basket price increased by 8.38%, reflecting an impermanent loss of 4.99% for LPs due to the combination of rising prices and long-skewed open interest imbalance.
Volume
Volume decreased by 3.86% on Jupiter in the past week compared to previous weeks, averaging $430.8M per day, compared to $448.1M on average in the three weeks prior. BTC’s average daily volume decreased by 6.75% over the last week compared to the three weeks prior.
SOL continues to be the most dominant market on Jupiter, consisting of 73.22% of the protocol volume in the last week.
Unique Daily Users
Looking at unique daily users, it suggests a maximum of ~7,500 users on the most active days. Recently, it was between 4,500 and 7,500 — a breakout from the typical 3,000-6,000 range.
PnL
Due to Jupiter traders’ net long exposure, their aggregate realized PnL increased by $10.9M in gross terms though it decreased by $2.3M after accounting for fees. Traders’ cumulative unrealized PnLs, meanwhile, increased by $17.4M this week.
Fees
Over the past week, Jupiter’s cumulative fees were ~$4.1M, with a daily average of $579.2K, a decrease of 8.36% from $632.0K the previous three weeks.
Market Level
OI Distribution
Jupiter’s traders continue to have a strong bias for long positions, leading to significant OI imbalance. We recently proposed a price impact mechanism modification that would reward trades that balance new open interest within a given minute — a mechanism that would benefit both traders (by incentivizing bi-directional trading) and liquidity providers (by creating a more delta-neutral and manipulation-resistant stream of yield).
SOL:
BTC:
ETH:
Price impact
P99 trades have paid 7.95 bps in the SOL market over the last four weeks, while BTC and ETH markets have paid 6.96 and 6.52 bps, respectively. In other words P95 and below pay less than 1 basis point above 6 bps, the base rate, in all markets.
SOL:
BTC:
ETH:
