Solana News Today: Jupiter's DTF Platform Launches WET Token to Tackle DeFi's ICO Fairness Issues

Solana's DeFi landscape is set for another major disruption as HumidiFi, the largest dark pool automated market maker (AMM) on the blockchain, prepares to launch its native token, WET, in November. The token will debut via Jupiter's Decentralised Token Formation (DTF) platform, marking a pivotal moment for both the project and the broader Solana ecosystem, according to a DL News report.

HumidiFi has rapidly emerged as a key player in Solana's decentralized trading scene, processing over $33.3 billion in trade volume in the past 30 days—nearly 25% of all Solana DEX activity, according to DeFiLlama data. Unlike traditional AMMs like Uniswap, which rely on user-provided liquidity, HumidiFi operates as a "prop AMM," using liquidity exclusively from its creators. This model allows it to actively defend against bot attacks and offer tighter spreads, making it a preferred route for trading aggregators like Jupiter.

The WET token launch, confirmed by Jupiter's "cat-herder" Kash Dhanda in a live stream, will be the first project on Jupiter's DTF platform. The platform introduces a tiered allocation system: tokens will first be reserved for whitelisted participants (e.g., employees and investors), followed by a JUP staker allocation, and finally a public sale on a first-come, first-served basis, the DL News report explained. This structure aims to address criticisms of newer ICO models, where pro-rata distribution can be exploited by large investors. Jupiter's legal counsel, Yu Kheng Pek, emphasized that the first-come model ensures fairness, a departure from practices he described as "manipulable."

DTF's design includes additional safeguards. Tokens sold to the public will begin trading immediately on Meteora, a Jupiter-affiliated DEX, while insider allocations will be locked onchain to prevent rule circumvention. JUP stakers will also gain access to a discounted pre-sale, a feature Dhanda hinted could become standard for future DTF launches, the DL News piece noted.

The launch underscores the growing maturity of Solana's DeFi infrastructure. HumidiFi's success as a prop AMM highlights the network's ability to innovate beyond traditional AMM models. By leveraging Jupiter's ecosystem, the project aims to further solidify Solana's position as a high-throughput, low-cost alternative to Ethereum-based platforms, according to BitcoinWorld.

Analysts note that the WET token's utility could extend beyond governance, potentially incentivizing liquidity provision or trading activity. However, risks remain, including market volatility and smart contract vulnerabilities inherent to new protocols, BitcoinWorld also cautioned.

HumidiFi's rise reflects broader trends in decentralized finance. As dark pool AMMs like HumidiFi capture significant volume, they are reshaping onchain trading dynamics. Jupiter's DTF platform, by enabling structured token launches, could catalyze further innovation in capital formation and liquidity management, according to Lookonchain.

With the WET token set to debut in November, the Solana community will closely watch whether this collaboration between two leading DeFi players can drive the next wave of adoption. For now, the focus remains on the technical execution of the launch and the token's post-issuance performance, according to Bitget.