Solana’s Jupiter Unlocks Double Yield for Its Lending Pools

The extra yield is available only if traders actively route through these pools, which means Jupiter operates Solana’s largest swap router—the software most wallets and applications rely on to find the best prices across venues—while also maintaining pools that depend on this flow. The company confirmed to CoinDesk that the router does not prioritize its own vaults and instead sends swaps to wherever the price is most favorable. The risk of pairing assets is unevenly distributed, though. Jupiter noted that margin is valued using primary market oracles, or data providers, so a temporary price wobble on an exchange does not trigger any action and a position liquidates normally once the loan-to-value ratio crosses the threshold. A genuine depeg operates differently. On the debt side, the borrower is protected: a borrower splitting $100 between USDC and USDT would see the pool rebalance into whichever asset held its value while still owing the $100. On the collateral side, there is no such protection, and a supplier bears the loss on both assets if either breaks. This is why the design is restricted to correlated pairs, stablecoins against each other and SOL against its staked versions, rather than volatile assets. “There has been a barrier between the two primary methods people use to earn APY onchain, namely lending and providing liquidity to exchanges,” said Kash Dhanda, Jupiter’s chief operating officer.

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