Weekly RIsk Report | October 27, 2024

Summary

  • Over the past week, the protocol’s volume increased by a massive 38.03% — averaging $622.4M per day — compared to $450.9M on average in the three weeks prior.
  • In the same span, SOL’s price increased by 7.09%, ETH’s price decreased by 3.79%, and BTC’s price increased by 3.59%. JLP increased by 3.48% vs. the JLP basket’s 3.31%, representing an outperformance of 0.17% for LPs relative to the JLP pool’s underlying assets.
  • Jupiter traders’ aggregate realized PnL increased by $10.6M in gross terms due to their long-favored SOL & BTC exposure but decreased by $5.5M in net terms. Traders’ cumulative unrealized PnLs, meanwhile, increased by $5.1M this week.

Protocol level

JLP pool

The JLP pool held relatively steady in nominal terms this week, with WETH & USDT deposits rising the most.

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

JLP Market Comparison

JLP’s market price increased by 3.48% over the last week. In the same period, BTC increased by 3.59%, ETH decreased by 3.79%, and SOL increased by 7.09%.

Given the JLP pool’s weights:

  • SOL - 45.65%
  • WBTC - 11.77%
  • WETH - 9.34%
  • USDC - 23.61%
  • USDT - 9.63%

JLP’s basket price increased by 3.31%, reflecting an outperformance of 0.17% for LPs due to the long-skewed imbalance of open interest.

Volume

Volume increased by 38.03% on Jupiter in the past week compared to previous weeks, averaging $622.4M per day, compared to $450.9M on average in the three weeks prior. BTC’s average daily volume increased by 1.37% over the last week compared to the three weeks prior.

SOL continues to be the most dominant market on Jupiter, consisting of 81.05% of the protocol volume in the last week.

Unique daily users

Jupiter’s active address count has risen in the last week to a range of 6K-9K per day, up from a typical range of 3K-6K over the past two months.

PnL

Due to Jupiter traders’ net long exposure, their aggregate realized PnL increased by $10.6M in gross terms this week. Traders’ cumulative unrealized PnLs, meanwhile, increased by $5.1M this week.

Fees

Over the past week, Jupiter’s cumulative fees were ~$5.7M, with a daily average of $821.1K, an increase of 24.46% from $659.8K 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:

Price impact

P99 trades have paid 8.11 bps in the SOL market over the last four weeks, while BTC and ETH markets have paid 6.9 and 6.5 bps, respectively. P95 and below pay less than 1 basis point above 6 bps, the base rate, in all markets.

SOL:

BTC:

ETH:

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