Proposal: Launching an On-Chain Dark Pool Mode for Perpetuals on Jupiter
Author: [Your Name or Project]
Date: [Insert Date]
Overview
We propose the development of a Perpetual DEX on Jupiter with built-in privacy features — a “Dark Pool Mode” — to protect users from MEV, front-running, liquidation attacks, and public exposure of their positions.
This type of infrastructure could attract institutional capital, support high-volume traders, and position Jupiter as a pioneer in privacy-enhanced DeFi trading.
The Problem: Total Transparency Can Hurt Traders
Current perpetual DEXs expose all positions, leverage levels, liquidation points, and order sizes on-chain in real-time. This can lead to:
- Front-running and sandwich attacks
- Liquidation sniping (intentional market movements to force liquidations)
- Increased slippage and worse execution for large orders
- Loss of strategic privacy for both retail and institutional users
These issues reduce trust and deter serious capital from engaging on-chain.
The Solution: On-Chain Dark Pool Perpetuals
We propose creating a new mode within Jupiter Perpetuals that:
- Hides orders and positions from public view until after execution
- Obfuscates deposits and smart contract interactions temporarily
- Leverages zero-knowledge proofs (ZK) or encryption to validate actions without revealing sensitive data
- Offers optional privacy layers for traders, including stealth addresses or private order routing
This would mimic how dark pools work in TradFi — enabling high-volume, low-impact execution without exposing strategy or risk.
Technical Ideas (High-Level)
- Use Solana-native ZK primitives (e.g., ZK Compression, zkVMs) to validate order integrity without revealing trader data
- Implement commit-reveal or time-delayed order publication
- Separate UI inside Jupiter Terminal for privacy-enhanced trading
- Add optional stealth trading via encrypted addresses or zk-based wrappers
The goal is to make privacy the default for those who need it, while maintaining speed, capital efficiency, and composability.
Benefits for Jupiter
- Attracts institutions, whales, and serious traders
- Reduces MEV, front-running, and malicious liquidation attempts
- Increases protocol revenue via higher volume and fees
- Strengthens Jupiter’s leadership in innovation and infrastructure
- Offers a first-mover advantage in on-chain dark pool trading
Next Steps
- Open discussion with Jupiter core contributors and product team
- Evaluate technical feasibility and roadmap alignment
- Design an MVP with limited pairs and basic privacy layer
- Collaborate with market makers and strategic partners for early adoption and testing
Final Thoughts
Jupiter is already the leading liquidity layer on Solana. Privacy is the next competitive edge — not just for compliance, but for trader protection.
A Dark Pool Mode would bring meaningful differentiation to Jupiter’s perps and strengthen its position as a long-term leader in on-chain markets.
We’re open to collaborating or supporting this initiative in any way.