Jupiter Launches Lend v2 on Solana, Letting Borrowed Assets Earn Trading Fees

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.

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