Solana lending giant Jupiter now lets the same dollar earn twice
Jupiter Lend has introduced 'Smart Collateral' and 'Smart Debt' features, allowing users to simultaneously earn lending interest and liquidity provider trading fees on correlated assets. By pairing assets like stablecoins or SOL and JupSOL, the protocol aims to increase capital efficiency and attract more activity to its lending platform.
Why it matters
This innovation bridges the gap between traditional lending and decentralized liquidity provision, potentially setting a new standard for yield optimization in the Solana ecosystem.
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.
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