Solana lending giant Jupiter now lets the same dollar earn twice
The new Lend v2 product turns deposits and borrowed assets into trading liquidity, tying higher returns to whether Jupiter’s router can send enough swap flow to the new vaults.
Solana lending platform Jupiter has introduced its new Lend version 2 (v2) product, enabling deposits and borrowed positions to function as trading liquidity. This allows users to simultaneously earn interest as a loan and a share of swap fees. The protocol holds approximately $1.9 billion in deposits and generated $1.6 million in fees over the past 30 days.
Active loans total $822.7 million, with deposits and loans both experiencing a decline over the past month. The new version introduces two optional features: Smart Collateral and Smart Debt. Smart Collateral pairs USDC, USDT, SOL, or JupSOL deposits into a correlated liquidity pool, enabling assets to earn yield on loans while generating trading fees and staking rewards.
Smart Debt accomplishes the same for borrowed assets, offsetting loan costs with generated fees. Users can opt out of these features if they prefer traditional lending. The increased yield is contingent on traders engaging with the pools, which requires Jupiter to maintain the largest swap router on Solana and own pools that require trading flow.
The protocol's risk is mitigated through the use of primary market oracles for margin valuation, ensuring that positions liquidate as normal during depeg events. Jupiter's COO, Kash Dhanda, stated that the design aims to provide higher deposit rates, cheaper borrowing, and improved terms as vaults attract more trading activity.
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