Jupiter's New Lend v2 Lets Deposits Earn Twice as Trading Liquidity

Solana lending giant Jupiter has introduced its new Lend v2 product, allowing deposits and borrowed positions to act as trading liquidity. This means users can earn both lending interest and a share of swap fees from the same capital.

The optional features Smart Collateral and Smart Debt automatically pair assets into correlated liquidity pools, boosting yields for depositors and offsetting borrowing costs when traders route swaps through those pools.

Jupiter Lend currently holds about $1.9 billion in deposits, generated $1.6 million in fees over the past 30 days, or roughly 1% a year on the capital sitting there before any split with the protocol.

The new design is confined to correlated pairs, such as stablecoins against each other and SOL against its staked versions, due to the risk of pairing assets unevenly. On the debt side, borrowers are protected if one stablecoin depegs, but collateral providers bear the loss on either asset.