The problem Jungle Exchange solves

1.Improve Capital Utilization
Compared to traditional LP market-making models, Jungle can enhance capital efficiency by at least 10 times, primarily through the following methods:

• Allow LPs to use leverage tools;
• Support a hybrid model of AMM and Orderbook, increasing the frequency of capital usage.

2.Permissionless Creation and Customization of Market Maker Pools
Jungle Exchange provide flexible and comprehensive LP trading tools, supporting institutional-level and retail participants in advanced market-making, and enabling profit sharing from trading profits of superior strategies. Specifically, capable LPs are currently able to customize the following parameters:

• Leverage ratio of the funds providing liquidity;
• Price range for providing liquidity;
• Fee levels charged to traders;
• Spread charged to traders.

You can learn more through the Jungle Exchange Docs.

Challenges I ran into

1.Issue & Challenge
The integration of the hybrid AMM and Orderbook model posed a significant challenge. We need to ensure seamless operation and high-frequency trading without latency issues.
Solution
To address this, we introduced an optimized matching engine to handle high transaction volumes efficiently. And conducted extensive stress testing to identify and fix performance bottlenecks.
Please refer to Jungle Exchange Matching Mechanism for details.

2.Issue & Challenge
Managing liquidity provider (LP) customization features, to ensure LPs could safely and effectively use leverage and set custom parameters without triggering risk control and compromising platform stability.
Solution
We developed robust risk management protocols and real-time monitoring systems, introduced a gradual rollout of features with thorough user feedback loops to ensure practicality and risk management.

By addressing these challenges with targeted solutions, we ensured the successful development and operation of Jungle Exchange.