The derivative category
A derivative is a financial contract whose value depends on (or “derives” from) the price of something else (like stocks, gold, or currencies). In DeFi a derivative is a token or contract that gets its value from the price of another asset. It allows to speculate on the value of a token
Jupiter Token
Project Overview
- Jupiter is a tool that helps people swap tokens on Solana. It compares different DEXs to find the best price for the trade.
- By bringing together liquidity from many platforms, Jupiter helps avoid bad prices and small pools. This makes trading faster and more efficient on Solana.
Utility and Value Proposition
- The JUP token is mainly used for voting on decisions in the Jupiter platform. People who hold it can help decide things like when to provide liquidity, how many tokens to release, and other major updates.
- Right now, JUP is mostly used for voting. There’s no clear info that it gives special access to other features.
- Jupiter uses 50% of the fees it collects to buy back JUP tokens, and these tokens are locked away for 3 years. This is meant to keep steady demand for the token and possibly raise its value.
- Even though there aren’t specific rewards for staking, the voting rights and buyback system give people a reason to hold the token over time.
Governance and Community
- People who hold JUP tokens can vote on important decisions, like when to add liquidity or release new tokens. This gives users a voice in how the platform develops.
- Jupiter aims to be decentralized, with a big share of tokens given to the community. But how decentralized it really is depends on how the tokens are shared and how involved users are.participation.
- Jupiter has grown a lot, with a 2,300% rise in trading volume and over 10 million active wallets. That shows it has a big and active community.
- Jupiter plans to keep giving control to the community by handing out 50% of the total token supply through airdrops and grants. This should help make it more community-run over time.
Liquidity and Market Performance
- You can buy and sell JUP on several platforms, including big ones like Bitstamp, which helps make trading easier.
- Right now, JUP has a market cap of about $1.08 billion and around 2.84 billion tokens in circulation. Its price moves up and down like most crypto tokens.
- Since Jupiter works by connecting to many DEXs, it uses different liquidity pools across the Solana network. This helps keep trades smooth and liquid.
- With a total estimated value (fully diluted) of $3.85 billion, JUP’s market cap seems to match its use and potential in the DeFi space.
Regulatory and Compliance
- Jupiter is a decentralized platform that doesn’t ask for ID (no KYC), so people can trade without revealing who they are. Still, users need to follow their own country’s rules.
Technology and Smart Contracts
- Jupiter runs on Solana, a blockchain known for being fast, secure, and cheap. These features make it great for high-speed trading and more advanced DeFi tools.