CumberlandThe new Lend v2 product turns deposits and borrowed assets into trading liquidity, tying higher returns to whether Jupiter’s router can send enough swap flow to the new vaults.
Solana lending giant Jupiter now lets the same dollar earn twice
The new Lend v2 product turns deposits and borrowed assets into trading liquidity, tying higher returns to whether Jupiter’s router can send enough swap flow to the new vaults.
Jupiter’s Lend v2, introduced Monday, allows deposits and borrowed positions to double as trading liquidity so users can earn both lending interest and a share of swap fees from the same capital. The product introduces optional Smart Collateral and Smart Debt features that automatically pair assets into correlated liquidity pools, boosting yields for depositors and offsetting borrowing costs when traders route swaps through those pools. While borrowers in correlated pools are protected if one stablecoin depegs, collateral providers bear the loss on either asset, a risk Jupiter seeks to limit by confining the design to stablecoin pairs and SOL versus its staked versions.
Solana decentralized-lending giant Jupiter rolls out its new Lend version 2 (v2) product on Monday, allowing deposits and borrowed positions to simultaneously act as trading liquidity so the same dollar earns interest as a loan and a share of swap fees.
Jupiter Lend holds about $1.9 billion in deposits, according to DefiLlama data, and 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.
Active loans stand at $822.7 million and have fluctuated between $600 million and $900 million since September, Token Terminal data show. Deposits and loans have both slipped over the past month.
The new version of Lend introduces two features, both optional.
Smart Collateral lets a deposit of USDC, USDT, SOL or JupSOL be paired automatically into a correlated liquidity pool. That allows the assets to earn yield on any loans while gaining trading fees and, where applicable, staking rewards from one position. Smart Debt does the same for borrowed assets, so fees generated by a debt position offset the cost of the loan. Users who want ordinary lending can ignore both.
The extra yield exists only if traders actually swap through those pools, which means Jupiter not only runs Solana's largest swap router, the software most wallets and apps use to find the best price across venues, but it also owns pools that need that flow to arrive.
The company told CoinDesk the router does not favor its own vaults and sends swaps wherever the price is best.
The risk of pairing assets falls unevenly, however. Jupiter said margin is valued using primary market oracles, or data providers, so a temporary price wobble on an exchange does not trigger anything, and a position liquidates as normal once its loan-to-value ratio passes the threshold.
A genuine depeg is different. On the debt side the borrower is protected — someone borrowing $100 split between USDC and USDT would see the pool rebalance into whichever asset held its value and still owe $100. On the collateral side there is no such protection, and a supplier carries the loss on both assets if either breaks.
That is why the design is confined to correlated pairs, stablecoins against each other and SOL against its staked versions, rather than volatile assets.
"There's been a wall between the two primary ways people earn APY onchain, lending and LPing," said Kash Dhanda, Jupiter's chief operating officer, referring to lending and supplying liquidity to exchanges.
The design lets Jupiter offer higher deposit rates and cheaper borrowing, he said, and terms improve as the vaults attract more trading. "It is not about just serving existing loans, but providing efficiency to grow the entire market."
Jupiter said it expects a mix of new loans and migrated positions, without giving a target or a cap. A protocol whose loan book has not grown in a year now has a product that pays more, and the next 30 days of active loans will show whether yield was the thing holding it back.
1Grayscale quietly drops Cardano, Polkadot and Hedera ETF plans12 min ago 2Bitmine’s ETH buying slows as Tom Lee's firm shifts capital to share buybacks1 hr ago 3Solana gets its first Strategy STRC product through Solstice Finance 1 hr ago 4Strategy sells 1,690 bitcoin, raises $653 million from MSTR shares3 hrs ago 5Crypto exchange Coinsbuy loses $8 million in coordinated two-blockchain attack3 hrs ago 6Why the UK financial watchdog is drafting new rules for tokenized gold3 hrs ago 7Bitcoin's BIP-110 episode is free-market capitalism in purest form3 hrs ago 8Bitcoin steadies above $65,000 as Iran-Oman deal talk eases Hormuz concerns, lifts risk assets4 hrs ago 9Bitcoin volatility is in meltdown, but downside protection still commands a premium5 hrs ago 10A rare CME shift: Hedge funds abandon structural shorts to bet on a bitcoin rally6 hrs ago
Building the Zcash Machine: Tachyon and Quantum Readiness
Building the Zcash Machine: Tachyon and Quantum Readiness
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
Why it matters:
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
Strategy sells 1,690 bitcoin, raises $653 million from MSTR shares
Bitcoin steadies above $65,000 as Iran-Oman deal talk eases Hormuz concerns, lifts risk assets
Bitcoin volatility is in meltdown, but downside protection still commands a premium