Jupiter DEX added another service to its suite, turning into one of the complete DeFi hubs on Solana. Jupiter announced the creation of its initial lending service, with 40 vaults and $2M in incentives.
Jupiter is adding another service to its suite, launching a native lending solution. Jupiter Lend announced its public beta launch, with 40 active vaults and $2M in incentives. The lending protocol was created in partnership with Fluid DeFi. Jupiter Lend announced its launch in August, releasing an audited public beta just weeks later.
Until recently, Jupiter was mostly a hub for DEX activity, routing, and trading. In the past few months, Solana accelerated its lending activity, mostly driven by Kamino Lend. Now, Jupiter aims to grab a piece of the growing liquidity and demand for collateralized loans.
Jupiter aims to compete with a new liquidation engine, offering lower risk and fees for holding positions. The new lending vault uses the Fluid loan technology, allowing multiple lending loops without fear of liquidation.
Jupiter to boost Solana-based BTC lending
The new lending protocol will start out with a selection of stablecoins, including USDC, USDT, EURC, USDG, USDS, and syrupUSDC. Both borrowers and lenders will have special incentives to boost activity.
Additionally, Jupiter’s vaults will accept Solana versions of wrapped BTC, including cbBTC by Coinbase, xBTC, and the oldest asset, WBTC. Solana is becoming one of the significant BTC-based lending platforms, with over $300M of BTC liquidity on Kamino.
Jupiter will also use liquid staking token JupSOL and JitoSOL, in addition to the native JLP. New assets will be added weekly, after community feedback. The native JUP token is also available from day one to be deposited as collateral and borrow USDC against it.
JUP gets a boost from lending launch
JUP rallied by more than 6% in the past day, rising to $0.49. The token may benefit from the incentive for lending loops if traders decide to buy back with borrowed funds. JUP remains pressured by its ongoing token unlocks, as recently reported by Cryptopolitan.
JUP recovered close to $0.50, as it became one of the first collateral assets. | Source: CoingeckoThe new lending venue will benefit from Coinbase’s Stablecoin Bootstrap Fund, increasing initial liquidity.
Jupiter Lend will launch with $16M in initial liquidity, deposited at the pre-launch stage in August. To compare, Kamino Lend recently broke above $3B in liquidity, while Maple Finance broke above $2B.
Jupiter has the advantage of a native app with access to multiple services. The routing service and aggregator are still among the top 3 Solana apps based on daily fees. Demand for Solana DeFi rose as the platform now carries over $11.3B in total value locked, with over $12B in circulating stablecoins.
Jupiter locks in over $2B in liquidity on decentralized pairs. Additionally, the protocol achieved $2.66M in daily fees, with an increase in the past few weeks. Jupiter’s services are tracking Solana’s overall DeFi recovery and inflow of stablecoins. The app benefits from the meme trend through DEX routing, general transfers, and swaps. Lending and DeFi now aim to replace meme tokens as the leading user activity on Solana.
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Source: https://www.cryptopolitan.com/jup-rallies-as-jupiter-adds-lending-service/
