Solana's Jupiter Combines Lending with Liquidity Provision

Solana-based DeFi platform Jupiter has released an upgrade to its lending product called Lend v2. The new feature combines two separate ways of earning returns in decentralized finance: lending and liquidity provision.

Lend v2 introduces Smart Collateral and Smart Debt, two optional features that allow users to deposit or borrow assets as part of a correlated liquidity pool.

With Smart Collateral, users can earn lending yield, DEX trading fees, and native staking rewards. Smart Debt applies the same concept to borrowed assets, potentially offsetting interest charged on debt with trading fees.

Jupiter's COO Kash Dhanda says Lend v2 brings down a 'wall' between lending and liquidity provision, allowing users to opt-in for their assets to work as both lending and AMM liquidity at the same time.