Proposal: Launching an On-Chain Dark Pool Mode for Perpetuals on Jupiter

Jupiter Products
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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

  1. Open discussion with Jupiter core contributors and product team
  2. Evaluate technical feasibility and roadmap alignment
  3. Design an MVP with limited pairs and basic privacy layer
  4. 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.

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