Solana’s DeFi ecosystem is heating up, and the launch of Jupiter Lend adds to its momentum. Built by Jupiter, this new money market lets users earn passive yield, or use leverage via a Multiply feature that loops deposits to amplify returns. It’s already seeing strong early traction, with an easy-to-navigate interface and options for both conservative and more risk-tolerant users.
With SOL ETFs likely on the way and SOL treasury firms scooping up supply, it’s a good time to take a look at DeFi on Solana, especially as major DEX aggregator Jupiter has just launched its new product Jupiter Lend, which offers borrowing and some high yields for users.
So, let’s look at the state of DeFi on Solana, and then walk through how to bag some solid returns on Jupiter Lend.
The State of Solana DeFi
Solana became one of the central stories of this cycle as the leading network for memecoin deployment, but it also has a thriving DeFi ecosystem that has soared this year to a new TVL ATH of $11.5 billion. This means Solana is the second biggest chain for DeFi with a 7.6% market share, although Ethereum still dominates at 59.6%.
Additionally, Solana’s stablecoin market cap is increasing and currently sits at $12.7 billion, while the Trump family’s World Liberty Financial recently teased the launch of its USD1 stablecoin on Solana.
What Is Jupiter Lend?
Launched last week in public beta, Jupiter Lend is a money market on Solana built by Jupiter in partnership with Fluid, which is a particularly big deal because Jupiter is the biggest player within the Solana ecosystem, with a TVL of $3.1 billion.
Jupiter Lend allows users to earn yield on assets by depositing into a wide range of vaults, and also operates a Multiply function. This uses looping so that users can leverage their deposits and ramp up the APY levels, making Jupiter Lend a direct competitor to Kamino, which also operates on Solana and offers a similar Multiply function to loop deposited assets.
Since launch, Jupiter Lend has climbed quickly to a TVL of almost $500 million while generating a lot of hype and attention.
Before we continue, remember when using any DeFi app to be aware of the risks, which can include the possibility of smart contract exploits, frontend attacks, and stablecoin de-pegs.
How to Use Jupiter Lend
To get started, visit the Lend app and hook up your Solana wallet. This is part of the extended Jupiter platform, which includes token swaps and perps trading, so if you need to get hold of any particular tokens for use in Lend, you can use the Swap function.
Earn
For the most straightforward option, click on the Earn tab at the top of Jupiter Lend to see a list of vaults to which you can deposit, and you can check the APY and TVL for each one. At the moment, this section includes four USD-pegged stablecoin vaults, one EUR-pegged stablecoin vault, and one SOL vault.
The highest yield right now can be found on the USDG stablecoin, the vault for which has an APY of 10.29%, and the TVL on that one is $18.1 million.
To deposit, click on that option and you’ll get a simple Deposit interface, and you’ll see that this is also how you can make withdrawals later. After you’ve deposited, your positions and earnings will then be displayed on the Earn page in the corresponding vault…
