Jupiter Meaning

May 20, 2024 | Updated May 20, 2024

Jupiter is a Solana-based decentralized exchange aggregator that consolidates liquidity from multiple DEXs.

Jupiter: Solana DEX

Solana hosts a plethora of decentralized exchanges (DEXs) that use automated market makers (AMMs) and liquidity pools to provide users with direct asset swaps. However, the liquidity conditions of tokens can vary wildly between different DEXs, requiring users to look through many different options in order to find the best price. This is where Jupiter comes in.

Jupiter is a decentralized exchange aggregator on Solana. Launched in 2021, the platform addresses the need for efficient liquidity aggregation for financial instruments in the decentralized finance (DeFi) space. It connects users to various DEXs on the network, allowing them to interact with diverse financial options such as token swaps and perpetual futures through a single interface. Thus, Jupiter enables users to discover the “best rates” or “competitive trading prices” with minimal slippage from one interface.

What Can You Do on Jupiter Exchange?

Jupiter’s basic and most popular function is direct asset swaps, that is exchanging one cryptocurrency token for another. Besides offering direct asset swaps, Jupiter enables users to execute more sophisticated trades as well, such as limit orders, dollar-cost averaging (DCA), perpetual, and bridges:

Limit orders – Jupiter offers a decentralized limit order feature that functions with a similar efficiency to centralized limit orders. This feature allows users to place buy or sell orders at specific price levels, allowing them to secure optimal prices and minimize slippage.
Dollar-cost averaging (DCA) – Jupiter’s DCA feature allows users to automatically purchase a predetermined amount of tokens at specific time intervals.
Perpetuals – Jupiter DEX also enables users to take long or short futures positions with a maximum leverage of up to 100x. Ideally, users can participate in the platform as liquidity providers or traders. The liquidity providers lock their funds in the perpetuals vault while the traders use these locked funds to trade on the platform.
Bridges – Jupiter also functions as a bridge aggregator, where it assembles data from the supported bridges and determines optimal routes for a bridge transaction based on the existing conditions. In short, it helps users bridge tokens from EVM and non-EVM blockchains, lowering slippage and transaction fees for the optimal routes.