Jupiter United Creation: Actively researching solutions to current network congestion, malfunctioning oracle, and liquidity issues

PANews reported on April 11 that SIONG (@sssionggg), the co-founder of Solana ecosystem trading aggregator Jupiter, stated on platform X: "Recently, our perpetual contract product has encountered many problems. Due to congestion in the Solana network, traders have had difficulty submitting positions. Most positions are very time-sensitive, such as adding collateral when existing positions are close to liquidation. Jupiter has taken several measures to alleviate this situation: 1. Increasing priority fees for better transaction processing; 2. Conducting extensive infrastructure work at the backend for better broadcasting transactions; and soon will add Jito Bundle as a way to submit transactions. However, the Solana network has been getting worse over the past week or longer. We are actively researching in this area to see what we can do to improve transaction success rates. In addition, Jupiter has increased the minimum position size to at least $10 USD in order to reduce spam on its products."

SIONG also pointed out that due their price oracle providers having difficulty completing transactions on-chain because of network congestion sometimes prices updates lag by 5-10 minutes which is not suitable for opening positions since their product requires price updates with no more than a three-second delay . To solve this problem they've added backup oracles but these too suffer from high latency making them useless for setting take-profit and stop-loss orders which require tight price update delays . They spend between 10-20 SOL daily (possibly more) ensuring these backup oracles stay updated but even then they're only useful if there's high latency . Their user interface relies heavily on chain-based oracle data so when an oracle isn't working users may experience freezing interfaces , currently efforts are being made towards decoupling reliance upon it while actively exploring new ways of improving them.

In addition SIONG mentioned liquidity issues where he saw high/full utilization rates of SOL and BTC making it difficult for traders open positions and potentially leading to a very poor user experience. They've already signed contracts with partners like Gauntlet to help them manage market risk when adjusting the liquidity required for traders' transactions. Each position also has a limit of $1.5 million USD so that other traders have enough liquidity to open positions as well . On the JLP side, due to liquidity issues, they saw reduced trading volume and fees on their product . As seen in the JLP APY it's dropped from over 100% down to around 50% now , clearly network congestion is not conducive for JLP deposits/withdrawals since this requires all five oracles working simultaneously . These were some unforeseen problems when they first launched their perpetual contract product , continuous network congestion and outdated price oracles are giving traders a bad experience but SIONG says his team is actively researching solutions to improve this situation.