Jupiter, a major player in the Solana ecosystem, has introduced a new lending platform designed for advanced crypto users. This new development shows Jupiter’s shift from being only a token-swapping service to offering borrowing and lending.
The protocol, created in partnership with Fluid, introduces features that aim to give users stronger lending capacity with less locked collateral. The announcement has also impacted the price of JUP, with the token seeing a strong uptick in the market in response.
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Jupiter Offers Up to 90% LTV on Loans
Jupiter’s lending platform focuses on providing loan-to-value (LTV) ratios up to 90%. Compared to standard ratios of around 75% in other crypto lending services, this allows users to borrow more while posting less collateral. This system works by using a smart contract-based liquidation engine that automatically sells a borrower’s collateral if the LTV limit is crossed. It helps reduce risk for the protocol while supporting more flexible borrowing conditions.
In order to support this structure, Jupiter uses dynamic limits that are designed to isolate and manage risk. This setup is expected to allow traders to move between token swaps and loans more easily while minimizing the chance of systemic issues. These tools aim to make the lending process smoother and safer for users who frequently adjust positions or move assets.
The integration with Fluid, originally an Ethereum-focused liquidity project, is a key part of the system. Kash Dhanda, a key figure at Jupiter Exchange, said:
“Fluid is a proven leader in DeFi. Now they’re bringing their innovation to Solana”
New Features, Same Platform
Jupiter’s lending platform will begin with two internal protocols. The first is a lending protocol that allows for one-click deposits. The second, called a vault protocol, lets users borrow at competitive rates. Both systems are built to be composable, meaning other teams can eventually build on top of Jupiter’s platform.
Though the lending system is not live yet, there is an open waitlist. The full rollout is expected to bring more tools into Jupiter’s platform, allowing it to operate as more than just a DEX aggregator.
Jupiter currently handles about 95% of Solana’s DEX aggregator volume. The lending platform adds a new service line to its offerings without changing its core focus. By doing this, the team aims to serve experienced users who want better tools for managing their digital assets.
JUP Surges Over 21% After Lending News
Following the lending announcement, JUP, the native token of Jupiter, saw over a 21% surge before declining to $0.56 at the closing of May 24. The current price action shows a breakout from an inverted head and shoulders pattern. The neckline of this setup stood at $0.57, and a 12% jump on Thursday pushed the token above this level. This might suggest a trend reversal.
The pattern’s depth sets a breakout target of $0.82. Technical indicators support the price movement. The Relative Strength Index (RSI) now stands at 59, suggesting strong momentum but nearing the overbought zone. At this level, traders often watch for possible short-term pullbacks.
If the price fails to hold above $0.57, the bullish setup could break. A fall below this level may bring the token down to $0.45, a recent 7-day low. Market watchers are monitoring price movements closely, especially after such a quick gain.
Jupiter’s Larger Goals in DeFi
Jupiter’s lending service is part of a larger effort to expand into a full-service DeFi application. With over $2.6 billion in total value locked (TVL), the protocol already leads Solana’s decentralized exchange activity. Adding borrowing features makes it a more complete platform for asset management.
Jupiter began in 2021, developed by the pseudonymous Meow. Since then, the protocol has made several major steps, including the distribution of 700 million JUP tokens in January, a move that followed a 2023 airdrop of nearly 1 billion tokens. These distributions helped build the user base and engage the community. Dhanda said during the presentation:
“You can go from swaps and perpetuals [trading] to borrowing and lending. Liquidity begets liquidity.”
Closing View
Jupiter’s entrance into the lending space on Solana is a calculated expansion into a closely related part of DeFi. With high LTV ratios, risk controls, and low fees, it aims to offer strong lending tools to experienced users. The early market response shows a renewed interest in both the platform and the JUP token. Jupiter is no longer just a trading platform – it now wants to be a place where users can borrow, lend, and manage assets without switching services.
Read also: LIBRA Fallout: Billions Lost, Political Chaos, Insider Deals, Jupiter Announcement
