Jupiter Exchange is the leading decentralized exchange (DEX) liquidity aggregator built on the Solana blockchain.
Despite slightly bearish markets post-Bitcoin ETF approvals and another (yawn) Fed FOMC meeting which saw rate cuts delayed, the much-anticipated Jupiter Exchange airdrop went through as planned on 31 January, distributing $700 million worth of its JUP governance token (1.35 billion priced at around $0.60 at present) to tens of thousands of eligible Jupiter users.
This is the second major Solana ecosystem airdrop in recent months, following November 2023’s lucrative $255 million airdrop from liquid staking protocol Jito, where some holders got dropped up to $100k. (sadly, the author went to Solana Breakpoint in Amsterdam and only got a Jito T-shirt, true story).
With X and YouTube feeds flooded for the past few weeks with long airdrop guides for incoming new token launches across the zkSync, Layer Zero, Cosmos and Solana ecosystems, the Jupiter airdrop has stirred up controversies around its distribution mechanics. However, some also pointed out that while the early Solana ecosystem enriched VCs like FTX and Alameda Research, Solana 2.0 is admirably giving back to its community.
The last day of January saw a cool billion dollars in transaction volume for Jupiter exchange, compared to $781 million in volume by the leading DEX, Ethereum-based Uniswap V3. As an X user commented, who’s the poor chain now? Ouch.
Here’s what to know about Jupiter Exchange, its new JUP token, and how to take the momentum of “Jupuary” (January in Jupiter-speak) into the rest of 2024.
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What Is the Jupiter Exchange?
Jupiter Exchange is the leading decentralized exchange (DEX) liquidity aggregator built on the Solana blockchain that labels itself the ultimate CEX replacement. Launched in 2021 by an anonymous developer called Meow, Jupiter gathers liquidity from various DEXs and automated market makers (AMMs) such as Raydium, Serum, Orca, Saber, Penguin, Mercurial, and Supernova across Solana to get users the best token swap prices, similar to what 1Inch does on Ethereum.
As a liquidity aggregator, Jupiter has facilitated over $70 billion in total trading volume ($16 billion in December 2023 alone) at the time of writing and over 116 million swaps between 1.5 million traders according to Dune Analytics. The platform connects fragmented Solana DEX liquidity into a unified trading experience.
What Can You Do On Jupiter Exchange?
As a DEX aggregator, Jupiter offers a smorgasbord of key services that would fulfill every DeFi degen’s needs. These features include:
Token Swaps
Swap SOL, USDC, BTC, ETH, SRM and 100s of other Solana tokens at the best rates by splitting orders across multiple DEXs with the help of Jupiter. Swap settings are highly customizable (e.g. slippage) and there are no protocol fees charged. To keep users safe, a Strict list is enabled as default to ensure users only deal with vetted cryptos at the start.
Here’s Jupiter’s guide for further reading on what to do and not to do when swapping tokens.
Limit Orders
Normally the domain of CEXs, limit orders are a big deal. This essential trading tool is now increasingly found on DEXs, most notably 1Inch, to ensure you get tokens at the price you want.
You can place trades at specific prices so you don't overpay on token purchases. Jupiter uses powerful data from partners Birdeye and TradingView to give its users the most accurate information. Simply place a limit order on Solana and get your tokens straight into your wallet once it’s executed.
Perpetual Futures
You can now speculate on market movements with up to 5x leverage on Jupiter Perpetual Exchange. Go long or short on the perpetual market of your choice such as SOL-PERP, ETH-PERP, or WBTC-PERP, similar to how GMX operates on Ethereum.
Dollar Cost Averaging (DCA)
Dollar cost averaging is a popular method to ensure you don’t overpay for tokens. Automatically accumulate tokens over time at regular intervals with Jupiter DCA to reduce volatility risk.
Cross-Chain Bridging
Bridging is a vital tool for traders and developers. Jupiter allows users to effortlessly move assets between Solana, Ethereum, BNB Chain (BSC) and 5 other chains.
Mint New Tokens
Use tools such as Solana Token Program (CLI), Solana Tools and Dextools to mint (create) your own Solana SPL token, then set up liquidity pools which are automatically picked up by Jupiter. You can also apply to get on the verified Strict List and integrate Jupiter Terminal.
SUSD Stablecoin (Announced)
Evolving beyond aggregate trades and in the light of concerns around custody and regulations with USDT and USDC, Jupiter has also introduced plans for an overcollateralized native stablecoin called SUSD. It’s entirely decentralized and backed by Solana's liquid staking tokens (LSTs), a hot new crypto narrative for 2024. By leveraging Solana (SOL) as collateral, which accrues yield sufficient to offset the minting costs, users benefit from ongoing, interest-free loans while maintaining their SOL investment exposure.
What Is JUP, Jupiter's Governance Token?
In November 2023 at Solana Breakpoint, the blockchain’s flagship annual conference, Jupiter announced plans to launch JUP, a utility and governance token. 10 billion JUP will be minted, with a majority going to the community via a public token sale and airdrops.
JUP allows holders to:
- Vote on platform changes like token listings and emission schedules
- Propose and vote on ecosystem development initiatives
- Participate in protocol governance
In total, 40% of JUP (4 billion tokens) have been allocated to be airdropped to nearly 1 million Jupiter traders. This includes a 1.35 billion token airdrop on January 31, 2024.
JUP Tokenomics Up-Close
- 50% of JUP tokens will be distributed to the Jupiter team and 50% will be given to the community. No token sale will be conducted.
- Of the 50% of the team's JUP tokens, 20% will be allocated to current team members, vesting after two years.
- Another 20% of JUP tokens are reserved for future team members, strategic investors, and past Mercurial stakeholders.
- 4 billion JUP tokens will be kept in a 4/7 Team Cold Multisig wallet, requiring majority consensus for changes.
- Tokens are locked for at least one year; six months' notice required for liquidity events.
- 10% of JUP tokens for liquidity, are to be stored in a Team Hot Multisig wallet.
- 4 billion JUP tokens for the community, distributed over four annual airdrops.
- Initial airdrop of 1 billion tokens; remaining 3 billion in a community cold wallet with 4/7 multisig.
- 1 billion JUP tokens for community grants, managed by a 4/7 multisig hot wallet and Jupiter DAO.
- Genesis launch with an initial circulating supply of 1.35 billion JUP tokens.
- 1 billion tokens for community airdrop, 250 million for launch pool, 50 million for loans to exchange market makers, and 50 million for immediate liquidity needs.
The Jupiter Airdrop(s): What To Know
Jupiter's record-setting airdrop rewards users who interacted with Jupiter before Nov. 2, 2023. Over 955,000 Solana wallets (here’s a list of partner applications) qualify for the first airdrop based on historical Jupiter activity. The minimum JUP claim will be 200 tokens, worth roughly $140 at debut.
Don’t fret if you’ve missed the first round, as the fun with $JUP is only starting. Three more rounds are earmarked, that will distribute a further 30% of tokens, so get to know the Jupiter platform and start engaging to potentially qualify for future airdrops. A safe approach is to buy, sell, trade and bridge assets on Jupiter.
How To Claim Your JUP Tokens Safely
Keen to see if the airdrop fairy visited your wallet? Go to Jupiter's LFG Launchpad portal and connect your Solana wallet (e.g. Phantom, Solflare, Coinbase Wallet, Ledger) to first check if you qualify, then claim your JUP tokens.
Please be careful to visit only official links and be aware of phishing sites and schemes.
Scammers and hackers live for airdrop days, as crypto holders often FOMO too hard with all the excitement of free money and make mistakes. Some wallets like Phantom allow you to navigate safely in-app to Jupiter’s airdrop page. Only follow official links from verified sources.
Official Jupiter Airdrop Link: https://lfg.jup.ag/
How To Buy and Trade JUP Tokens
Once claimed, some may look to trade their free JUP tokens on DEXs like Jupiter itself, or directly through their Phantom wallet. The Phantom process is quite straightforward, and requires you to login, select your applicable wallet address, input details, review the trade summary and submit your order.
Holders who wish to sell their JUP, or those that wish to buy some, can do so on leading centralized exchanges, which you can find on the JUP markets page. Binance, OKX and Bybit were some of the leading exchanges that listed JUP on Day 1.
Final Thoughts
Crypto airdrops are a vital tool when done right, to help build communities, reward early adopters, and inject liquidity into crypto markets. Airdrop farming is a largely risk-free way to bolster your bankroll and truly experience crypto at a grassroots level, and you can learn how to do it here.
However, as always, be careful with which protocols you interact with, and use a new wallet (not your main wallet with all your bored apes) where possible, in case a scam project or malicious smart code crosses paths with you. May the allocations be in your favor!
