This article comes from the WeChat public account Laoyapi (id: laoyapi).

On May 16, 2022, Igor Igamberdiev, director of data research at TheBlock, stated on his personal social media platform that Jump Crypto attempted to restore the anchor between UST and the US dollar a week ago, and added over US$682.5 million in other US dollars to the liquidity pool on Curve Stablecoin liquidity and withdraw nearly 600 million UST liquidity through LP Token.

Afterwards, Jump Crypto began to mint UST into LUNA from around 6:00 on May 10 for arbitrage. On May 12, Jump Crypto completed the transaction on the Terra chain, casting 640 million USTs into 221 million LUNAs and entrusting them to 5 validators (including Orion Money, Hashed, DSRV, Everstake, SmartStake).

Igor Igamberdiev also stated that although the capital used by Jump Crypto was approximately equal to the size of the entire UST pool, it still failed to prevent its decline and lost at least hundreds of millions of dollars in this incident.

A Brief History of Jump Trading Group

Jump Trading Group is a trading institution that has grown from a CME trading pool to a research-oriented quantitative trading firm. Currently, Jump Trading Group has more than 1,000 employees worldwide and is one of the largest traders in traditional asset classes by volume.

The market has evolved dramatically over the years, from open floor outcry to today's prevalent high-frequency trading environment driven by machine learning. After undergoing tremendous changes in the market structure, Jump Trading Group is also promoting the continuous evolution of its own core, and is committed to finding its own suitable position in each new iteration of the market structure.

And Jump Trading Group has gradually realized that in the era of digitalization of the market, it is not enough to just make software, and it also needs to build a high-level engineering organization to stand out and maintain a leading position among competitors. So Jump Trading Group transformed into a software company.

And when the market becomes more and more intelligent, breakthroughs in data engineering capabilities have also brought about a new competitive environment for predictive modeling. In this environment, it is obvious that only having a quantitative trading department is not enough. Beyond that, there is the need to construct an identity and environment where quantitatively aware people can find a sense of belonging and thrive, and they need to be empowered to take the helm. And that makes Jump Trading Group a research institution.

The history of Jump Trading Group is certainly a story of antifragility, an institution that grows stronger with each market paradigm shift that also wipes out much of the field of competition. And every new iteration will lead to the compounding of skills. To borrow a passage from Hamilton Helmer, professor of business strategy at Stanford University and author of the book "Seven Foundations of Business Strategy": Process capability is constantly growing as the muscle of an enterprise organization. This process refers to the ability to evolve in a continuous and organic manner with changing markets and technologies.

With the rise of open protocols and a new wave of financial infrastructure, Jump Trading Group is once again facing a new round of evolution. The rise of DeFi also paved the way for Jump Trading Group to bring two decades of trading expertise and engineering technology to the encryption field, so in 2021 Jump Crypto was born.

History of Jump Crypto

In 2021, Jump Trading announced the establishment of the encryption investment department Jump Crypto, which plans to invest 40% of the seventh investment fund in the cryptocurrency field, mainly investing in DeFi, Web 3.0, blockchain and financial applications.

Jump Trading Group's exploration of encryption originated as an internship program at the Jump Research Lab at the University of Illinois. The work itself and the environment has changed dramatically over the past 7 years, but Jump Trading Group still largely explores in the spirit of agility, open mind, and rapid iteration in a lab environment and development.

In short, the first pillar of Jump Trading Group's crypto business is to be a mature, active player in the crypto market. Due to crypto's nascent nature and uniquely global connotations, crypto market structures are rife with nuance and idiosyncrasies at every level of the stack. Complex trading systems tend to amplify these nuances, and scale amplifies them even further, which has become increasingly relevant to the Jump Trading Group trading philosophy.

The main focus of Jump Crypto's early work was to build a robust platform that would enable users to participate in the crypto market in large numbers and conveniently. This, combined with no-nonsense deal intelligence, could potentially make Jump Crypto a leading market player as the crypto space continues to evolve.

However, Jump Crypto's encryption work has another mission, which is closely related to its second pillar. At the heart of Jump Crypto's second pillar is its thesis for the crypto world - over a long enough time frame, it is likely to achieve significant growth in myriad and unpredictable ways.

As one of the few global companies in the financial sector with strong technology, capital and innovative spirit, Jump Crypto is often cited as a catalyst for emerging platforms and projects. These platforms and projects often lack the liquidity and opportunities to incentivize early user organic participation, but often have very considerable long-term potential. This often means that if you get involved early on, you get partner status, not just a regular participant. As a partner, you need to assess the upside of an asset over a longer time horizon than typical transactional decisions. Even for a mature trading institution, this is not something that can be achieved overnight, but given that Jump Crypto has a considerable investment research foundation behind it, it can use its research reports and other results as a guide to assess these investment opportunities to a certain extent bright light. This also gives Jump Crypto the opportunity to join forces with several really great communities and is basically aligned with where the crypto space is headed.

Competitive Product Analysis——Alameda Research

Alameda Research is an industry-leading market-making trading company that trades thousands of digital asset products, including all mainstream currencies and related derivatives, with its self-developed technology and rich cryptocurrency expertise. Since 2017, the company has worked tirelessly to build a global team and infrastructure capable of trading on major exchanges and markets.

The Alameda Research team

Caroline Ellison (Co-CEO)

Prior to joining Alameda in 2018, Caroline worked as a trader for equity traders on Jane Street. She graduated from Stanford University with a degree in Mathematics.

Sam Trabucco (Co-CEO)

Sam previously worked as a trader in SIG's bond ETF division. He graduated from MIT in 2015 with a degree in Mathematics and Computer Science.

Nate Parke (CTO)

Nate graduated from UC Berkeley EECS in 2017. Prior to joining Alameda, he worked as an engineer and visiting research scholar at a VC-funded startup at UC Berkeley's RISE Lab. He now leads Alameda's engineering team.

Tony Qian (Trader)

Tony has a degree in Mathematics and spent time trading stock options before joining Alameda in 2019.

Oliver Hamilton（Developer）

Oliver graduated from Vanderbilt University in 2021 with an MS in Computer Science and a BS in Mathematics. He enjoys playing poker, golf, running and testing. After buying the top of the ICO bubble in 2017, he returned to the cryptocurrency space with a vengeance.

Charlie Tsang（Trader）

Charlie graduated from the Chinese University of Hong Kong with a degree in Engineering. Prior to joining Alameda, he was Head of OTC Trading at Genesis Block.

Aravind Menon（Trader）

Originally from Ireland, Aravind worked as a trader in SIG's stock options department before committing full-time to the cryptocurrency space in 2017. He enjoys four-player chess and effective altruism.

Christian Drappi（Developer）

Christian studied mathematics before taking his first trading job. After joining a start-up and cooling off for a while, he is now back at work.

Alameda Research's rich experience and professional knowledge and ability give it certain advantages to compete in important fields:

1. Rich experience in development and market investment

Generates a unique trading edge through its in-depth research, market-neutral algorithms, execution strategies and trading relationships.

Develop best-in-class technology, including competitive infrastructure and connectivity, sophisticated automated trading systems and stress-tested risk management systems.

Establish a solid operating framework with a strong business and financial infrastructure.

Maintain flexibility across market mechanisms by analyzing market trends and developing high-expression trading systems that can be successful in most environments.

Alameda Research is committed to combining its strengths in trading, over-the-counter quoting and market making, trying to provide better service than its competitors in each area. Thereby making the global digital asset market more liquid and fair by combining these skills to compete with other professional traders.

2. Professional knowledge and ability

Trading: Alameda Research is one of the few true multi-strategy cryptocurrency trading firms. It has sophisticated trading algorithms, fast-moving traders, institutional-grade systems and infrastructure, strong relationships in trading fiat currencies as well as digital assets, and a wide range of cryptocurrency products. This enables Alameda Research to trade a large number of transactions in a variety of market conditions, accessing a large number of different sources of liquidity.

Off-market quotation: Because Alameda Research conducts a large number of transactions on digital asset exchanges every day, it can obtain diversified liquidity to conduct competitive transactions. This allows Alameda Research to participate in over-the-counter trading of exchange-listed tokens — often at a more lucrative margin than competitors that don’t get as much liquidity from exchanges. Users can trade with it through the FTX OTC portal that provides liquidity.

Market Maker: Alameda provides market making services for tokens on top cryptocurrency exchanges; its trading infrastructure and their experience in the field allows Alameda Research to provide reliable, tight liquidity and responsive service. Specifically, it has the following characteristics:

(1) Switching network

Alameda Research supports trading on all major exchanges, both centralized and decentralized.

(2) The spread is small

Alameda ensures that users trade with tight spreads, so transaction costs are low for those interested in buying and selling tokens.

(3) In-depth market

Market depth is an important indicator of the level of confidence people have in the prices depicted. In general, the greater the depth of the market, the more confident one can be in price discovery. By ensuring sufficient market depth, Alameda allows other market participants to trade user tokens with less price influence and more confidence in market liquidity.

(4) 24/7 coverage

Alameda Research is monitored 24/7 by traders and support staff to provide liquidity and respond to market events, including weekends and holidays.

(5) No charge

Alameda does not charge any onboarding fees, monthly hiring fees, transaction fees, market making crossover fees, or any additional fees.

(6) Customized daily reports

Alameda creates custom daily reports outlining its market-making operations for users' tokens and overall activity across all markets it trades.

(7) General support

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References:
https://twitter.com/FrankResearcher/status/1526156075036205058
https://jumpcrypto.com/introducing-jump-crypto/
https://www.alameda-research.com/

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