Jupiter Lend’s lending business has been stuck for nearly a year. The lending book has remained stuck between $600 million and $900 million, while deposits are close to $1.9 billion. The fees collected from lending are only about $1.6 million per month, for an annualized return of less than 1%.
Money is piling up on the books, but it isn’t making money.
So they launched Lend v2: issuing a new token that can be used for both lending and liquidity swaps. The old barrier between lending and liquidity provision has been dismantled. The trade-off is uneven risk allocation: if any stablecoin depegs, the system will automatically rebalance and protect the borrowers; the collateral providers bear all the losses, no matter which coin crashes.
This bet is a big one—hoping that higher yields can lure the money back into the lending pool.
Money is piling up on the books, but it isn’t making money.
So they launched Lend v2: issuing a new token that can be used for both lending and liquidity swaps. The old barrier between lending and liquidity provision has been dismantled. The trade-off is uneven risk allocation: if any stablecoin depegs, the system will automatically rebalance and protect the borrowers; the collateral providers bear all the losses, no matter which coin crashes.
This bet is a big one—hoping that higher yields can lure the money back into the lending pool.