Hassan Maishera
Jupiter, a leading decentralized finance platform on Solana, has launched Lend v2, an upgraded lending protocol that allows eligible supplied and borrowed assets to earn decentralized exchange trading fees.
The protocol introduces two optional features—Smart Collateral and Smart Debt—designed to connect lending positions with automated market maker liquidity. Jupiter has also added Lifetime PnL, which provides users with a historical overview of their positions’ performance.
Smart Collateral Combines Lending and Liquidity Provision
In a press release shared with Cryptowisser, Jupiter revealed that Smart Collateral allows users to supply a single supported asset, including USDC, USDT, SOL or JupSOL. The protocol automatically uses the deposit to create liquidity within a correlated trading pair.
Eligible positions can generate multiple sources of returns simultaneously. These may include lending yield, DEX trading fees and native staking rewards where applicable.
The feature removes the need for users to manually divide their assets between lending markets and liquidity pools. Instead, one position can support lending activity while also providing liquidity for decentralized trading.
Lend v2’s Smart Debt feature applies a similar model to borrowed assets. Users can opt to have their debt positions function as liquidity within supported DEX pools.
When traders execute swaps through these pools, the borrowed assets may generate trading fees. Those fees can help offset the position’s borrowing costs, potentially reducing the effective interest paid by the borrower.
The feature does not change the standard borrowing and repayment process. Users can continue managing their loans in the same way while their borrowed assets participate in liquidity provision.
“There’s been a wall between the two primary ways people earn APY onchain—lending and LPing,” Jupiter Chief Operating Officer Kash Dhanda said. “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.”
Lifetime PnL Improves Position Tracking
Jupiter has also introduced Lifetime PnL to give users a clearer picture of how their lending positions perform over time.
The tool records the total amount earned or paid throughout the life of each position. It accounts for lending yield, borrowing costs and trading fees, allowing users to assess their net performance from one consolidated view.
This added transparency could make it easier for users to determine whether the trading fees generated through Smart Collateral or Smart Debt are sufficient to improve their overall returns.
Smart Collateral and Smart Debt are entirely optional. Users who do not want their supplied or borrowed assets exposed to DEX liquidity can continue using Jupiter Lend through its traditional lending model.
The launch expands Jupiter’s presence in Solana’s DeFi ecosystem by bringing lending and liquidity provision together within a single protocol.
