Jupiter's new Solana trading product, YOLO, offers up to 1,000x leverage on $SOL, $BTC, and $ETH, but its unaudited beta version uses a mechanism where payments are covered by the platform's liquidity pool, with no guaranteed payment schedule.
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Jupiter Exchange's new experimental trading product, YOLO, achieved $1 billion in trading volume within less than 24 hours of its beta launch on October 15.
This product allows users to speculate on the prices of $SOL, $BTC, and $ETH, offering up to 1,000x leverage with a minimum collateral of $5.
Jupiter wrote in an X post earlier today: "Jupiter Yolo achieved $1 billion in trading volume in less than 24 hours!"
However, this milestone refers to the notional value of open and closed positions, meaning that a $5 collateral can create a $5,000 position with 1,000x leverage.
How does YOLO work?
YOLO, introduced by Jupiter Labs, uses a simulated trading model rather than executing leveraged positions directly on the market.
Jupiter co-founder Siong Ong explained in a post: "Positions are not actually executed on the market, but the profits and losses are real."
This model enables Jupiter to offer leverage up to 250 times higher than the current limit on its Jupiter Perps market, which uses the Jupiter Liquidity Pool (JLP) as its counterparty.
However, higher leverage comes with significant risk. With 1,000x leverage, a price movement of just 0.1% could trigger liquidation and wipe out your collateral. YOLO also only supports market orders and does not offer stop-loss or take-profit orders.
Winning does not guarantee immediate payout.
The payment structure of YOLO introduces risks beyond the losing trade itself. When a trader closes their position, Jupiter returns their remaining collateral in $JupUSD. However, profits are only paid out immediately if the platform’s liquidity pool can cover the full amount and there are no earlier claims in the queue.
If the liquidity pool is insufficient, YOLO will place all profits into a first-in, first-out payment queue. The platform will then pay out the queued profits in full, one at a time, as subsequent traders' losses replenish the liquidity pool.
While there are still pending claims, new profitable trades will also be added to the queue, and Jupiter does not guarantee a payment deadline. Its trading rules warn that profits may never be paid.
Jupiter also disclosed that YOLO has not yet been audited and urged users to start with small amounts and not risk their entire savings.
Solana's response to PaperTrade?
The launch of YOLO coincides with growing attention on PaperTrade, an on-chain perpetuals platform built on Hyperliquid that employs a similar model in which the platform’s treasury absorbs trades. PaperTrade offers up to 1,000x leverage on $BTC and $ETH and rewards losing traders with $PAPER tokens. The platform’s treasury receives traders’ losses, uses Hyperliquid’s price as a market reference, but does not execute orders on Hyperliquid’s order book.
Jupiter co-founder Siong Ong confirmed in an X post that the Jupiter team was inspired by what PaperTrade is building.
PaperTrade launched on October 10 and has reportedly achieved trading volume exceeding $1.1 trillion and a TVL of $67.8 million.
Some members of the Solana community have viewed YOLO as Solana's response to PaperTrade.
Meanwhile, some have questioned whether it is sustainable to combine extreme leverage with returns paid from the platform’s fund pool.
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