Jupiter Revamps Solana Lending Service With Dual Yield on Deposits and Loans
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Jupiter, a Solana-based decentralized lending platform, has launched a new service that lets users put both deposits and borrowing positions to work as liquidity, earning interest and swap fees at the same time.
CoinDesk reported on August 10 that Jupiter unveiled Lend v2, the latest version of its lending service. DefiLlama data show Jupiter Lend has about $1.9 billion in total deposits and generated roughly $1.6 million in fees over the past 30 days. Active loans outstanding total $822.7 million, after moving between $600 million and $900 million since September 2025.
The update centers on two optional features: Smart Collateral and Smart Debt. Smart Collateral automatically links deposits of USDC, USDT, Solana's SOL token and JupSOL to related liquidity pools, allowing users to earn lending interest, trading fees and staking rewards from a single position. Smart Debt applies the same structure to borrowing positions, using fees generated in the pool to offset part of borrowing costs. Users who prefer a standard lending setup can opt out of both features.
"There has long been a wall between lending and liquidity provision, the two main ways to earn yield on-chain," Jupiter Chief Operating Officer Kash Dhanda said. He added that the new design offers higher deposit yields and lower borrowing costs, with terms improving as more trading activity flows into the vaults. The goal, he said, is not only to maintain existing lending activity but also to improve market efficiency and support growth.
The structure still carries asymmetric risk on the collateral side. If a borrower takes out equal amounts of USDC and USDT and one token loses its peg, the pool automatically rebalances toward the asset that retains its value. Depositors do not have that protection. If one of the collateral assets depegs, the liquidity provider absorbs the entire loss. For that reason, Jupiter has limited the structure to highly correlated asset pairs, including stablecoin pairs and SOL against its staked versions.
Jupiter said it expects demand to come from a mix of new borrowing and transfers of existing positions, but it did not provide specific targets or limits.
