Jupiter launches Lend v2 with Smart Vaults, enabling users to earn DEX trading fees on borrowed liquidity while reducing borrowing costs.
DeFi & Yields ·
Jupiter has rolled out Lend v2 on Solana, introducing capabilities that allow borrowed assets to generate revenue through trading fees while held in a lending position. The update includes Smart Collateral, which enables a single deposited asset to accrue lending yield, trading fees, and staking rewards simultaneously, and Smart Debt, a feature that lets borrowed assets function as decentralized exchange liquidity. According to CryptoPotato, both supplied and borrowed assets can now earn DEX trading fees within lending positions.
The v2 release adds a Lifetime PnL tracking mechanism that records earnings and costs for each position over time, intended to improve visibility into position performance. These features aim to offset borrowing costs by routing fee revenue back to users maintaining active lending positions on the protocol.
The scope of adoption and user migration to v2 from any prior version remain unclear, as does whether the fee-earning mechanism applies uniformly across all asset pairs or collateral types supported by the protocol.