- By enabling borrowed assets to serve as DEX liquidity, Smart Debt expands the same paradigm to include them.
- From a single position, eligible investments may receive native staking incentives, trading fees, and lending income.
Lend v2, the first lending protocol on Solana where borrowed assets may generate trading fees, was released today by Jupiter, the top DeFi platform on Solana. Along with Lifetime PnL, a new feature that provides users with a comprehensive historical perspective of position performance, the update also offers Smart Collateral and Smart Debt, two opt-in capabilities that enable provided and borrowed assets to also operate as decentralized exchange (DEX) liquidity.
A single supported asset, such as USDC, USDT, SOL, or JupSOL, may be deposited by users using Smart Collateral, and it will be automatically built into a linked liquidity pair. From a single position, eligible investments may receive native staking incentives, trading fees, and lending income.
By enabling borrowed assets to serve as DEX liquidity, Smart Debt expands the same paradigm to include them. Without altering how users borrow or repay assets, trading fees produced by a user’s debt position balance borrowing costs as traders move throughout those liquidity pools.
“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.
Additionally, Lend v2 offers lifespan PnL, which provides customers with a comprehensive record of all the profits and losses associated with each position during its lifespan, including trading fees, borrowing expenses, and lending yield.
Smart Debt and Smart Collateral are completely optional. Without being exposed to the DEX, users that choose conventional lending may continue to provide and borrow assets.
Jupiter is the top DeFi platform on Solana, supporting millions of users with swaps, perpetuals, lending, and more. Jupiter’s goal is to maximize capital efficiency across the Solana ecosystem while building the whole financial ecosystem onchain.
