Jupiter Lend v2 Bridges Gap Between Lending and Liquidity

Jupiter Lend v2 is an upgraded version of the Solana lending product that allows users to earn interest on their deposits as loans and trading fees at the same time.

The new feature, which went live on Monday, aims to bridge the gap between lending and liquidity by offering a more efficient way for users to earn yields. According to DefiLlama data, Jupiter Lend currently holds around $1.9Bn in deposits and generated $1.6 million in fees over the past 30 days.

The upgrade 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 users to earn lending yield on top of trading fees. Smart Debt mirrors this on the borrowing side by offsetting loan costs with fees generated.

Jupiter's chief operating officer, Kash Dhanda, framed the launch as closing a long-standing gap in on-chain finance. He said that the design lets Jupiter offer higher deposit rates and cheaper borrowing, with terms improving as the vaults attract more trading volume.