Weekly Risk Report | January 19, 2025

Summary

  • Over the past week, the protocol’s volume increased by 156.23%, averaging $1.6B per day, compared to $641.0M on average in the three weeks prior.
  • In the same span, SOL’s price increased by 33.71%, ETH’s price increased by 4.86%, and BTC’s price increased by 8.70%. JLP increased by 10.82% vs. the JLP basket’s 17.60%, representing an impermanent loss of 6.78% for LPs relative to the JLP pool’s underlying assets.
  • Jupiter traders’ aggregate realized PnL increased by $50.8M in gross terms and $33.0M in net terms due to their long-favored exposure. Traders’ cumulative unrealized PnLs, meanwhile, increased by $65.0M this week.

Protocol Level

JLP Pool

The JLP pool deposits were volatile this week as LPs fled to $TRUMP and $MELANIA, but this capital has been steadily returning since.

The pool’s composition also hemmed close to target after brief deviations, with utilization rates remaining steady.

JLP Market Comparison

JLP’s market price increased by 10.82% over the last week. In the same period, BTC increased by 8.70%, ETH increased by 4.86%, and SOL increased by 33.71%.

Given the JLP pool’s weights:

  • SOL - 47.8%
  • WBTC - 11.41%
  • WETH - 10.26%
  • USDC - 25.97%
  • USDT - 4.55%

JLP’s basket price increased by 17.60%, reflecting an impermanent loss of 6.78% for LPs due to the long-skewed imbalance of open interest.

Volume

Volume increased by 156.23% on Jupiter in the past week compared to previous weeks, averaging $1.6B per day, compared to $641.0M on average in the three weeks prior. BTC’s average daily volume increased by 113.15% over the last week compared to the three weeks prior.

SOL continues to be the most dominant market on Jupiter, consisting of 71.73% of the protocol volume in the last week.

Unique Daily Users

Unique daily addresses rallied to a high of 12K and persisted around 6-12K throughout the week, with activity elevated around the $TRUMP launch.

PnL

Due to Jupiter traders’ net long exposure, their aggregate realized PnL increased by $50.8M in gross terms and increased by $33.0M after accounting for fees. Traders’ cumulative unrealized PnLs, meanwhile, increased by $65.0M this week.

Fees

Over the past week, Jupiter’s cumulative fees were ~$15.9M, with a daily average of $2.3M, a increase of 123.40% from $1.0M the previous three weeks.

Market Level

OI Distribution

Jupiter’s traders continue to have a strong bias for long positions. There’s currently no expectation or reason for that to change.

SOL:

BTC:

ETH:

9 Likes

Got a little shock when i saw that $JLP fell from $4.9 to $4.3 in minutes. But seems like it recovered well.

3 Likes