The leading decentralized exchange (DEX) aggregator on Solana, «Jupiter», presented a new lending protocol project called «Jupiter Lend» this Thursday during the Blockchain conference «Solana Accelerate». Additionally, according to the announcement, this new lending feature will be boosted in the future thanks to a collaboration with the DeFi platform «Fluid».
«Fluid is a well-established leader in the DeFi sector», said Jupiter advisor, Kash Dhanda, during the conference. «We will bring more innovation to Solana», he added.
It is important to note that an exchange aggregator verifies and collects prices across different DEXs to provide users with the best market rates. Thanks to this, Jupiter stands out for its low operational fees and high liquidity, strengthening the Solana ecosystem.
«You can shift from operating with swaps and perpetuals to borrowing and lending», Dhanda said. «Liquidity generates liquidity», he added.
Additionally, Jupiter, launched in 2021 by the pseudonymous developer «Meow», is a fundamental protocol of the Solana ecosystem that manages approximately 95% of the DEX aggregator volume on the network.
As a reference, in January, the Jupiter project distributed 700 million JUP tokens, with an approximate value of $580 million, to users, participants, and contributors based on their trading activity, after conducting an airdrop of nearly 1 billion JUP tokens in 2023.
At the time of writing this post, the native token of the Jupiter protocol, «JUP», is trading at $0.5793. Source: CoinMarketCap.
Currently, Jupiter is one of the most popular DEX applications on Solana, with $2.65 billion in total value locked (TVL), growing by 19.7% in the last month.
«Jupiter Lend» promises to lead innovation in the DeFi lending sector.
Furthermore, it is important to highlight that currently, Jupiter (JUP) ranks 56th among the top tokens, according to data from the «CoinMarketCap» platform. Additionally, the JUP token currently has a market capitalization of $1.7 billion.
On the other hand, according to Kash Dhanda, Jupiter Lend will be the «most technically advanced money market».
Likewise, the new protocol will offer a loan-to-value (LTV) ratio, which is a percentage that compares the amount borrowed to the value of the asset backing it, of 90%, compared to approximately 75% in other crypto protocols.
Dhanda noted that these metrics will be achieved through a custom liquidation engine and dynamic limits designed to «isolate risk».
It is important to note that a liquidation engine is a smart contract mechanism that automatically sells a borrower's collateral to repay a loan when their LTV ratio exceeds a predefined threshold. This protects the protocol from potential defaults.
«Users can go further by paying less», Dhanda stated, adding that he expects Jupiter Lend's fees to be «as low as 0.1%».
It is noteworthy that, although Jupiter Lend has not yet been launched, it already has an open waiting list on its official website.
According to the announcement, the «lending protocol» will allow one-click deposits, while the «vault protocol» will enable users to request loans with «good interest rates». Additionally, Dhanda stated that the Jupiter Lend team expects to introduce new features and invited other teams to develop on the platform to enhance the ecosystem.
«Just use Jupiter», Dhanda said, concluding his presentation.
