Jupiter Co-founder: Jupiter Will Upgrade Price Impact Mechanism, Plans to Increase Cryptocurrency Trading Limits
Powered by ChatGPTAccording to TechFlow, on May 29, SIONG, co-founder of Jupiter, revealed that Jupiter plans to deploy a new price impact mechanism. After the new mechanism goes live, the trading limit for $SOL will be increased from the current 2.50 million USD to 10 million USD, and the trading limits for $BTC and ETH will be raised from 5 million USD to 20 million USD.
SIONG stated that under the current price impact mechanism, if a user's position opening amount exceeds the existing limit, the higher price impact fees may lead to immediate liquidation of the position. The new mechanism will directly address this issue. He added that further increasing the trading limits would require lowering the price impact fees, which could affect JLP's yield and increase risks.