A Note on Our Weekly Report Naming

To better reflect the period covered, we have updated our report naming convention. Previously named for the start date of the week (e.g., Aug 17), reports will now be named for the end date (e.g., Aug 24).

TL;DR

The market entered a consolidation phase as traders digested news from the Jackson Hole symposium, causing trading volume to cool by 19%. In a strong defensive showing, the TLP token remained nearly flat ( -0.09% ) despite a falling asset basket ( -0.54% ), as it captured trader losses. After a three-week winning streak, traders booked a -$30.3K loss. Open Interest remained stable at ~$1.7M, signaling that long-term conviction is intact.

Market Consolidates Post-Jackson Hole, Trading Activity Cools

The prevailing market narrative this week centered on a broad consolidation phase as traders and investors digested the uncertain outcome of the Jackson Hole economic symposium. This macroeconomic uncertainty prompted a more cautious stance across the market, leading to a cooldown in trading activity on Typus Perps.

Total volume for the week settled at ~$8.4 million , a decrease of about 19% from the prior week’s highs. However, in a sign of underlying user interest, average Daily Active Users (DAU) actually increased by 6.68%, suggesting users remained highly engaged with the platform even while placing fewer trades.

LPs Showcase Strong Defense in a Down Market

This week was an excellent showcase of the TLP’s defensive capabilities. While the TLP’s underlying asset basket saw a modest decline of -0.54% , the TLP token itself remained nearly flat, with a return of only -0.09%.

This significant outperformance was driven by the TLP’s core mechanics. The pool’s asset losses were almost entirely offset by the -$30.3K in realized losses from traders, which are captured by the TLP as the counterparty. This demonstrates the TLP’s ability to protect capital for LPs during choppy or downward-trending markets.

TLP vs. SUI: A 30-Day Performance Deep Dive

The new 30-day performance data further highlights the TLP’s value as a strategic asset. Over a volatile month that saw significant price swings, the TLP Stake strategy was down only -3.86%. In contrast, a simple strategy of holding SUI spot would have resulted in a much larger loss of -13.30%. The Sharpe Ratios, which measure risk-adjusted return, confirm this defensive strength, with the TLP strategies significantly outperforming SUI.

Trader Winning Streak Ends in Choppy Market

After a successful three-week run, the choppy, uncertain market conditions proved challenging for traders, ending their profitable streak. For the week, traders booked a collective realized loss of -$30.3K. However, the unrealized P&L for currently open positions remains positive at +$10K, suggesting that some well-positioned traders remain in profit.

Sentiment Moderates While Core Positions Hold Firm

While short-term trading volume declined, long-term market conviction remained stable. Total Open Interest held firm at ~$1.7 million , indicating that core positions established during the recent rally were preserved.

Market sentiment has moderated from the extreme bullishness of previous weeks, with the overall long/short ratio adjusting to a more balanced structure. An unwinding of ETH longs was particularly visible, releasing built-up leverage, while SUI and BTC have reclaimed their roles as the primary drivers of market sentiment.

Ultimately, the week represented a necessary consolidation phase for the market. The uncertainty following the Jackson Hole meeting tested traders but powerfully demonstrated the TLP’s defensive value for LPs. The stable base of Open Interest suggests the market is building a foundation for its next significant move once macroeconomic clarity emerges.