Based on liquidity aggregation, Jupiter leverages Solana’s on-chain transaction volume to support the development of LFG Launchpad, which is more suitable for the current market development stage.
Written by: Fu Ruhe
Today, Meow, co-founder of Jupiter, discussed the H2 plan for the second half of the year in a video. The team will conduct experiments in multiple areas to promote the development of Jupiter in key vertical directions, such as Jupiter Product, LFG Launchpad, Trial WGs, Crucial J 4 J Votes, and GUM.
In addition, Jupiter has released four updates today to optimize LFG. Sanctum will utilize the following features when launching its token next week:
MinOutput: a new method for swapping at startup.
Alpha Vault in LFG UI: allows depositors to become the first to swap in the pool.
Dynamic Airdrops: the team can add custom rewards, where the longer the waiting time, the more airdrops received.
Airdrop Vesting: the team can customize vesting parameters for airdrop recipients.
As the core of Solana’s DeFi ecosystem, Jupiter is closely associated with the prosperity of the Solana ecosystem. How will Jupiter develop and whether it can learn from the experiences of the older generation Ethereum DeFi leaders, and what future prospects will it present? Odaily will analyze the key points mentioned by Jupiter today.
Jupiter’s Past Achievements and Product Pillars
Meow, co-founder of Jupiter, stated in the video that the so-called H2 plan is to expand and conduct in-depth research on the existing functions of Jupiter based on its current foundation, in order to promote its development in vertical directions.
Jupiter’s current business mainly consists of liquidity aggregation, limit orders, DCA (dollar-cost averaging) and Perp trading, and LFG Launchpad.
Jupiter’s popularity is largely due to its liquidity aggregation. As a leading aggregator on Solana, Jupiter occupies a significant portion of the on-chain trading volume on Solana, with almost all on-chain transactions originating from it.
The following graph shows the share of transactions on Solana in the past six months:
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This graph demonstrates the importance of Jupiter in Solana’s DeFi ecosystem. With the popularity of meme waves on Solana and its dominant trading volume, Jupiter naturally takes the lead in the field of aggregation.
Why does Jupiter develop so rapidly on Solana, while 1inch and Uniswap, which appeared earlier on Ethereum, have relatively average results in aggregation? The main reason is that liquidity aggregation utilizes LP (liquidity provider) depth from different DEXs to facilitate trading with lower slippage. However, the different underlying networks of the two platforms have led to the underperformance of liquidity aggregation on Ethereum.
Furthermore, Jupiter’s limit orders, DCA, and Perp trading are relatively inferior to the functionality of liquidity aggregation, but they enrich Jupiter’s ability to meet different user needs.
Lastly, the emergence of LFG Launchpad and its visibility in the cryptocurrency market have contributed to Jupiter’s development. From the beginning of the year to now, Launchpad has already held three rounds, with Zeus Network in the first round, Sanctum in the second round, and deBridge in the third round.
Jupiter’s H2 Plan and Recent Optimization Key Points
After briefly introducing Jupiter’s current situation, let’s return to the beginning of the article. In which existing areas will Jupiter conduct experimental research as mentioned by Meow, co-founder of Jupiter?
Jupiter Product: As the name suggests, starting from Jupiter’s own products, this should represent the expansion and in-depth research of Jupiter’s liquidity aggregation and various trading modes.
LFG Launchpad: As a successful experimental product currently launched by Jupiter, further exploration and development centered around LFG Launchpad will continue.
Trial WGs: Various trial working groups on Jupiter, such as the Reddit promotion working group mentioned in Jupiter community proposals. These are various action groups beneficial to Jupiter’s development, with the community voting on the budget required for their development and deciding their subsequent development.
Crucial J 4 J Votes: Key proposals, which are pursued by any project team on the decentralized path.
GUM (Giant Unified Market): GUM integrates meme coins, real-world assets, stocks, and forex investments into Jupiter on Solana, allowing for more convenient direct trading between them.
Today, Jupiter also announced some upgrade plans, and here are the roles of these four measures:
MinOutput:
Flexible pricing: Users can specify the lowest price they can accept, ensuring that transactions do not deviate from their expectations due to market fluctuations.
Risk reduction: In situations of significant market volatility, users can set a minimum acceptable price to ensure that transactions are completed within the expected range, reducing the risk of losses.
Improved user experience: Users no longer need to worry about price changes during the transaction process, increasing the certainty of the transaction process and user confidence.
Alpha Vault:
Priority trading: Provides depositors with the opportunity to be the first to swap in the pool, enjoying the advantage of priority trading.
Lock-up period: As a return for this advantage, buyers of Alpha Vault need to accept a lock-up period to prevent short-term speculative behavior.
Liquidity management: This approach improves transparency and user experience while increasing the efficiency of liquidity management, helping to maintain market stability.
Dynamic Airdrops:
Incentivize holding: By increasing the waiting time and the correlation of airdrop rewards, users are incentivized to hold tokens for a longer period, reducing short-term selling behavior.
Custom rewards: The team can add custom reward mechanisms to make airdrops more flexible and attractive, increasing user engagement.
Promote long-term participation: In order to obtain more airdrop rewards, users are more inclined to hold tokens for the long term, helping to build a more stable user base and market environment.
Airdrop Vesting:
Long-term alignment of interests: By customizing vesting parameters, the team can ensure that the interests of airdrop recipients align with the long-term development goals of the project.
Reduce short-term speculation: The lock-up mechanism prevents users from immediately selling tokens after receiving airdrops.
Stable market: Gradually unlocking tokens can avoid sudden selling pressure in the market and maintain token price stability.
Conclusion
As the DeFi leader on Solana, Jupiter already attracts a significant portion of the traffic. However, how to effectively utilize this traffic to achieve higher product retention and user stickiness is the key focus of research for Jupiter (and all DeFi projects).
By vigorously developing LFG Launchpad, Jupiter has already seen how to design DeFi products not just as functional networks, but as new coin listing platforms centered around trading.
In the new cycle, Jupiter hopes to leverage the traffic foundation of its on-chain transaction share to represent projects that retain users on its own platform. This is a different development direction from other DeFi projects in the past. It is not an exaggeration to call it the light of Solana DeFi.