Jupiter Co-Creation: Researching solutions to improve network congestion, oracle and liquidity issues for perpetual contract products

Jupiter co-founder SIONG posted on the X platform: "Recently, our perpetual contract product has encountered many problems. Due to the congestion of the Solana network, traders have encountered difficulties in submitting positions. Most positions are very time-sensitive, for example, adding collateral when the existing position is close to liquidation. This can lead to a very unpleasant experience. Jupiter has taken some measures to alleviate this situation: 1. Increased priority fees to help better confirm transactions; 2. A lot of infrastructure work has been done on the backend to better broadcast transactions; 3. Jito Bundle will soon be added as a way to submit transactions. However, the Solana network has been getting worse and worse in the past week or more. We are actively researching this area to see what we can do to improve the transaction confirmation rate. In addition, Jupiter has also increased the minimum position size to at least $10 to reduce spam on the product. -Price Oracles are not working properly: Due to network congestion, its price oracle provider also has difficulty confirming transactions on the chain. As a result, sometimes you will see price updates lag 5-10 minutes. 5-10 behind 10-minute prices cannot be used to open positions. The product requires price updates to be at most 3 seconds behind. To address this, we have added backup oracles to the product. Jupiter spends 10-20 SOL per day (and may spend more) to ensure that these backup oracle data is up to date. However, these oracles also have high latency to be useful for their product. For example, these backup oracles are useless when setting take profits and stop losses, as these operations require very tight price update latency. The tight price update latency is to prevent traders from front-running the market and causing losses to the JLP pool. Our UI also relies on on-chain oracle data, and you may see the UI freeze when the oracle is not working. We are currently working on removing this dependency on the UI. On the oracle side, we are actively researching new ways to improve them. -Liquidity issues: We often see high/full utilization of SOL and BTC, which makes it difficult for traders to open positions and can result in a very bad experience for traders. We have currently signed up partners such as Gauntlet to help them capture market risk when adjusting the liquidity required for traders to trade. There is also 150 On the JLP side, we are seeing reduced volumes and reduced fees on the product due to liquidity issues. As seen on the JLP APY, it has dropped from over 100% to around 50% now. Obviously, network congestion issues are also not conducive to JLP deposits/withdrawals, as this requires all 5 oracles to work at the same time. These are some of the issues that the team did not foresee when we first launched the perpetual contract product. The constant network congestion and outdated price oracles have created a poor experience for traders. We are actively working on some solutions to improve this situation and look forward to sharing some improvements with you in the coming weeks. ”