Jupiter Launches Lend v2 on Solana Enabling Borrowed Assets to Earn Trading Fees
New features allow borrowed assets to function as DEX liquidity.
1Lend v2 Innovations
Jupiter announced Lend v2 on Solana on August 10. The new version became the first lending protocol on Solana where borrowed assets can earn trading fees. Features like Smart Collateral and Smart Debt were added, while Lifetime PnL records each position's earnings and costs. Supported assets include USDC, USDT, SOL, and JupSOL.
2Smart Collateral Benefits
With Smart Collateral, users can earn three types of income by depositing a single asset. Deposited assets are automatically composed into liquidity pairs. This enables lending yields, trading fees, and where applicable, native staking rewards from one position. The system significantly improves capital efficiency.
3Smart Debt Mechanics
The Smart Debt feature allows borrowed assets to function as DEX liquidity. As traders swap through these pools, debt positions generate trading fees that offset borrowing costs. The borrowing and repayment mechanics remain unchanged from traditional methods.
4Statement from Jupiter COO
Jupiter COO Kash Dhanda stated that Lend v2 breaks down the wall between the two primary ways to earn APY onchain: lending and LPing. Users can now opt to have their liquidity work simultaneously as both lending and AMM liquidity. Both features are entirely optional.
5Transparency with Lifetime PnL
The Lifetime PnL feature provides users with a complete record of what each position has earned or cost over its lifetime across lending yields, borrowing costs, and trading fees. This data helps users make more informed strategic decisions.
6Jupiter's Position on Solana
Jupiter offers swaps, perpetuals, and lending services on Solana. The company operates with a mission to build a complete financial ecosystem on-chain. As of August 10, JupSOL's total value locked exceeded $396 million.
7Industry Data Points
According to DefiLlama data, Jupiter's perpetual futures venue saw $702.6 million in trading volume on the same day. These figures demonstrate the growth rate of DeFi activity in the Solana ecosystem. JupSOL stands out as one of the assets eligible for Smart Collateral.
8Revolution in Capital Efficiency
Jupiter's Lend v2 update sets a new standard in blockchain finance. The ability for assets to generate multiple income streams simultaneously maximizes capital efficiency for DeFi users. This innovation could strengthen the Solana ecosystem's competitiveness.