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Jupiter’s Lend v2 lets deposits and loans earn lending and swap fees

Jupiter says Smart Collateral and Smart Debt pair assets into correlated liquidity pools, with depositors earning swap-fee shares only when traders route through those pools.

Reported · Written up by our desk · Market Structure

Solana decentralized lending protocol Jupiter rolled out its Lend v2 product on Monday, letting the same capital serve two roles at once. Deposits and borrowed positions can act as trading liquidity, so users can earn lending interest while also receiving a share of swap fees generated when trades route through Jupiter's pools, according to CoinDesk.

Jupiter’s Smart Collateral and Smart Debt features pair assets into correlated liquidity pools to boost returns and offset borrowing costs. Smart Collateral automatically groups assets such as USDC, USDT, SOL, or JupSOL, while Smart Debt does the same for borrowed assets, with fees from debt positions used to offset loan costs.

The product is designed to manage liquidation risk unevenly between collateral providers and borrowers. Jupiter says borrowers in correlated pools are protected if one stablecoin depegs, while collateral providers bear the loss on either asset, and it is seeking to limit that risk by confining the design to stablecoin pairs and SOL versus its staked versions.

Jupiter’s scale underscores how tied the new yield is to swap activity, CoinDesk reports. DefiLlama data cited by the outlet put Jupiter Lend at about $1.9 billion in deposits, with $1.6 million in fees over the past 30 days, while Token Terminal data show active loans of $822.7 million, fluctuating between $600 million and $900 million since September.

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