Jupiter's Lend v2 Launches on Solana with Trading Fee Earnings
Jupiter, a firm that runs swaps, perpetuals, and lending on Solana, has launched Lend v2, a new version of its lending protocol.
The upgrade introduces two opt-in features: Smart Collateral and Smart Debt. With these, supplied and borrowed assets can work as decentralized exchange liquidity while they sit in a lending position.
Smart Collateral allows users to deposit a single supported asset, such as USDC or SOL, and the protocol automatically composes it into a correlated liquidity pair. Eligible deposits can earn lending yield, trading fees, and native staking rewards from one position.
Jupiter's COO, Kash Dhanda, stated that Lend v2 'brings down the wall' between traditional lending and LPing by letting users opt-in to letting their liquidity work as both Lending and AMM liquidity at the same time.'