Jupiter Lend Revolutionizes DeFi with Version 2 Product

Solana's largest decentralized lending platform, Jupiter Lend, has released its new version 2 (v2) product. This upgrade allows users to simultaneously earn interest on loans and a share of swap fees by pairing deposits or borrowed positions with trading liquidity.

Jupiter Lend holds approximately $1.9 billion in deposits, generating around $1.6 million in fees over the past 30 days, which translates to roughly 1% annual interest before any split with the protocol. Active loans stand at $822.7 million and have fluctuated between $600 million and $900 million since September.

The new version of Lend introduces two optional features: Smart Collateral and Smart Debt. Smart Collateral automatically pairs a deposit of USDC, USDT, SOL, or JupSOL into a correlated liquidity pool, allowing assets to earn yield on loans while gaining trading fees and staking rewards from one position. Smart Debt does the same for borrowed assets, offsetting loan costs with generated fees.

Jupiter's chief operating officer, Kash Dhanda, stated that the new design confines pairing assets to correlated pairs, stablecoins against each other, and SOL against its staked versions, rather than volatile assets, to mitigate risk. The company assured CoinDesk that its swap router does not favor its own vaults and sends swaps wherever the price is best.