Jupiter launched Lend v2 on Solana on August 10, introducing two opt-in features that let supplied and borrowed assets work as decentralized exchange liquidity while they sit in a lending position.
As per a press release shared with CryptoPotato, Jupiter said Lend v2 is the first lending protocol on Solana where borrowed assets can earn trading fees, and the upgrade adds Smart Collateral and Smart Debt, alongside Lifetime PnL, a record of what each position has earned or cost over its life.
Collateral That Earns Three Ways
With Smart Collateral, a user deposits a single supported asset, such as USDC, USDT, SOL, or JupSOL, and the protocol automatically composes it into a correlated liquidity pair. Eligible deposits can earn lending yield, trading fees, and, where applicable, native staking rewards from one position.
Smart Debt extends the model to borrowed assets by letting them also function as DEX liquidity. As traders swap through those pools, the trading fees a debt position generates offset borrowing costs, and the mechanics of borrowing and repaying stay the same.
“There’s been a wall between the two primary ways people earn APY onchain, lending and LPing. Lend v2 brings down that wall by letting users opt-in to letting their liquidity work as both Lending and AMM liquidity at the same time,” said Kash Dhanda, COO of Jupiter.
Both features are entirely optional. Users who prefer traditional lending can keep supplying and borrowing assets without exposure to the DEX.
Lifetime PnL Tracks Every Position
Lifetime PnL gives users a complete record of what a position has earned or cost over its lifetime, across lending yield, borrowing costs, and trading fees.
Jupiter runs swaps, perpetuals, and lending on Solana and describes its mission as building the full financial ecosystem on-chain while maximizing capital efficiency across the network.
JupSOL, one of the assets eligible for Smart Collateral, is Jupiter’s liquid staking token and held $396.0 million in total value locked on August 10, according to DefiLlama. The firm’s perpetual futures venue held a further $702.6 million on the same day.
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