*Executive Summary*
Based on current market dynamics and asset performance, we recommend adjustments to Jupiter's borrowing rates for SOL, ETH, BTC, USDC, and USDT. Our analysis takes into account asset volatility, utilization, and market conditions to ensure fair compensation for lenders and attractive borrowing rates for users.
*Recommendations*
1. *SOL*: Maintain the current borrowing rate of 0.01% per hour due to increased volatility and utilization.
2. *ETH* and *BTC*: Decrease the borrowing rate from 0.01% to 0.008% per hour, reflecting decreased utilization and stabilizing volatility.
3. *USDC* and *USDT*: Decrease the borrowing rate from 0.01% to 0.008% per hour, aligning with recommendations for ETH and BTC, and reflecting consistently low utilization.
*Methodology*
Our recommendations are based on a comprehensive analysis of asset volatility, utilization, and market conditions. We utilize a capped-based implementation to ensure parameter changes do not create unintended side-effects.
*Asset-Specific Analysis*
1. *SOL*: Increased volatility and utilization warrant a conservative approach, maintaining the current borrowing rate.
2. *ETH* and *BTC*: Decreased utilization and stabilizing volatility justify a decrease in borrowing rates.
3. *USDC* and *USDT*: Consistently low utilization and stable market conditions support a decrease in borrowing rates.
*Market Dynamics and Competitive Analysis*
Jupiter's fee structure is highly competitive, especially for large-scale trades. Our analysis reveals that Jupiter becomes increasingly cost-effective as trade sizes grow, outperforming Binance in certain scenarios.
*Supporting Data*
Our recommendations are supported by data on 7-day average utilization of JLP assets, volatility, and market conditions.
*Conclusion*
These borrowing rate recommendations aim to strike a balance between fair compensation for lenders and attractive borrowing rates for users. We will continue to monitor market conditions and adjust our recommendations accordingly.
Refer to the research for more clue { here }