Jupiter Rolls Out Solana Lending Overhaul With Combined Deposit, Borrowing Yield

Jupiter, a Solana-based decentralized lending platform, has launched a new service that lets users use both deposits and borrowing positions as liquidity, allowing them to earn interest and swap fees at the same time.

CoinDesk reported on August 10 that Jupiter introduced Lend v2. Jupiter Lend holds about $1.9 billion in total deposits, according to DefiLlama data, and generated about $1.6 million in fees over the past 30 days. Active loans total $822.7 million and have fluctuated between $600 million and $900 million since September 2025.

The update centers on two optional features: Smart Collateral and Smart Debt. Smart Collateral automatically routes deposits of USDC, USDT, Solana (SOL) and JupSOL into 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 by the pools to offset part of borrowing costs. Users who prefer a standard lending setup can simply avoid 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 Casi Danda said. He added that the new design offers higher deposit yields and lower borrowing costs, with terms improving as more trading flows into the vaults. The goal, he said, is not just to maintain existing loans but to drive growth by improving efficiency across the market.

The structure does, however, carry 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 into the asset that retains its value. Depositors do not have that protection. If one of the collateral assets depegs, the liquidity provider absorbs the full loss. Jupiter is therefore applying the structure only to highly correlated asset pairs, such as stablecoin pairs and SOL paired with its staked versions.

Jupiter said demand is likely to come from a mix of new borrowing and the migration of existing positions, though it did not provide specific targets or limits.