Jupiter’s market share appears to be unaffected by the current chaos.
Unauthorized users gained access to the private key that was used by Solana DeFi for program deployment and closed two programs last week.
On X, the engineer who was in charge of these programs said that the user’s funds were protected. This implied that he had intended to limit the upgradeability to multiple keys signatures. However, he didn’t have time to do it. The programs have since been changed — they are now governed by a multisig that takes multiple keys to be opened. Jupiter must be thanking the stars for not having any funds stolen.
No one cared much about this. A commenter criticised the Jupiter Engineer for leaving. “keys in the ignition,” The oopsies were met by a collective shrug.
You could say that this kind of near-miss occurs all the time, but the space is moving too fast for crypto to be able to keep up with such seemingly insignificant details. But the non-incident also perhaps points to something that doesn’t get talked about as much: Jupiter’s seemingly-uncrossable moat in Solana DeFi.
Jupiter’s main selling point is its Swap function, which uses an algorithm to route trades between different liquidity providers in order to achieve the best prices possible for customers. The first time I tried to set up a swap for JitoSOL using PYUSD, the system suggested to send funds via Raydium to Meteora then onto Orca and back to my wallet. The product is commonly used by Solana DeFi. This particular version tends outperform its competitors. I tried a couple of different swaps while writing this article and Jupiter offered me better prices every time.
Because of this product, Jupiter finds itself somewhat immune to controversy — for now. Jupiter founder meow wrote an apology for the poor user experience on things such as gas price estimation. “quite hurt” When their product didn’t work as expected.
Jupiter has had a relatively small negative impact despite all of this. In the past couple of months, Jupiter’s native token has traded almost in sync with SOL. The platform has risen to become the third-largest in Solana DeFi by TVL, and it’s seen the most inflows over the past week of any Solana protocol with over $50 million — despite two of its programs being compromised.
Jupiter seems to be doing pretty well at the moment, unless a new competitor appears (although I did make a similar argument for Pump.fun which is finally losing steam).
Jupiter has been building a number of features in its utopian vision. “grand unified marketplace” vision. It’s beneficial to have a killer product that supports other businesses. Amazon used to use its web services for years in order to fund its online market.
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