Educational content, not investment advice. Crypto-asset values fluctuate.

Modulis 3 Β· DeFi lending
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Jupiter Lend β€” Solana's second lending platform

SOL Jupiter

Jupiter Lend β€” a second lending platform on the Solana network. You already know Kamino from lesson 3-3. Now you'll learn to compare two platforms like a professional: not "which one is better," but "what does each one give you, and what does each one cost you."

By the end of this lesson you'll be able to read a Jupiter Lend vault's parameters yourself, understand where its higher rates come from, and have a clear decision framework: Kamino, Jupiter Lend, or both.


What is Jupiter Lend

SOL You already know Jupiter (jup.ag) from Module 1 β€” it's Solana's main exchange and aggregator. In August 2025, Jupiter also launched a lending platform β€” Jupiter Lend (jup.ag/lend/borrow).

FactValue
LaunchAugust 2025
TVL in the first 24 hours$500M+
Total deposits (end of 2025)~$1.6B
Number of positions~99k
Liquidation engineBuilt by the Fluid team
StatusOut of beta

The main market accepts SOL, mSOL, jitoSOL, bSOL, as well as USDC and USDT as collateral. Our path doesn't change: SOL collateral β†’ USDC loan β€” exactly like Kamino.

Why get to know two platforms?

Not to pick the "best" one, but to have a choice: you can compare rates, split a position between two protocols, and avoid depending on a single platform. Professionals rarely keep everything in one place.


Kamino vs. Jupiter Lend

SOL Both platforms live on the Solana network β€” speed ~0.4s, a transaction ~$0.001–0.01. What differs is architecture and rules:

Two items from this table deserve their own section: 95% LTV and rehypothecation. They're two sides of the same coin.


LTV up to 95% β€” a possibility, not a recommendation

Most DeFi lending platforms cap out around ~75% max LTV. For Kamino's SOL market, it's 65%. Jupiter Lend allows up to 95% for some pairs β€” that's its main selling point: you can borrow more against the same collateral.

But remember lesson 3-2: the closer to the limit you borrow, the smaller the price move that liquidates you. Let's run the numbers as an illustration β€” if a vault's liquidation threshold were 95%:

Your starting LTVHow far SOL's price can drop before liquidation
30% (our rule)~68%
50%~47%
80%~16%
90%~5%

An allowed limit is not your target

The fact that a platform ALLOWS 95% LTV doesn't mean you should use it. A high limit is a tool for specific strategies (e.g., closely correlated asset pairs), not an invitation to borrow more. Our starting limit doesn't change on any platform: ~30% LTV. SOL's price has historically dropped both 30% and 50% β€” the buffer isn't theoretical.


Isolated vaults β€” and where the isolation ends

Jupiter Lend's architecture is isolated vaults: each vault has its own LTV limit, its own liquidation penalty, and its own asset caps. Riskier assets (JupSOL, PYUSD, ezSOL) are held in separate isolated markets.

Sounds safe. And at the configuration level, it is. But in 2025 the community noticed an important detail, and Jupiter confirmed it:

The β€œzero contagion” story β€” a lesson about marketing

Jupiter initially marketed its vaults as isolated with β€œzero contagion risk.” After community pushback, Jupiter COO Kash Dhanda publicly admitted the claim was β€œnot 100% accurate.” Vaults are isolated at the configuration level, but they share a common liquidity layer β€” a serious problem in one part of the system can affect others.

The takeaway: always check a protocol's marketing claims against its mechanics. Jupiter handled this honorably here β€” it acknowledged the inaccuracy. But checking is your job.


Rehypothecation β€” where collateral income actually comes from

The most important structural difference from Kamino. Rehypothecation (reusing collateral further down the chain) means: SOL you deposited as collateral in one vault can, through the shared liquidity layer, be lent out elsewhere in the system.

Jupiter's COO said it plainly: collateral income (supply APY) comes precisely from rehypothecation. That's not a flaw the platform hides β€” it's how it works. Higher rates and a higher LTV are the reward for this extra structure.

None of these risks means "don't use it." They mean: know what you're being paid for, and size your position accordingly.


Opening a position β€” step by step

The process is almost identical to Kamino β€” deliberately so, so you learn that lending platforms differ in their rules, not their buttons.

1

Connect to Jupiter Lend

Go to jup.ag/lend/borrow. Connect with Jupiter Wallet. Make sure you have SOL in your wallet.

2

Pick the SOL vault and read its parameters

Every vault has its own max LTV, liquidation penalty, and caps. Write them down BEFORE depositing β€” not after.

3

Deposit SOL as collateral

Click 'Deposit' on SOL. Enter the amount. Confirm in your wallet (~$0.001–0.01 fee).

Leave at least 0.05 SOL in your wallet for fees.

4

Borrow USDC β€” no more than 30% LTV

Click 'Borrow' on USDC. Enter an amount that keeps LTV around ~30%.

The platform will let you go much higher. Don't let yourself β€” the limit is the platform's ceiling, not your plan.

5

Monitor the position daily

LTV, liquidation price, borrow APR β€” the same metrics as Kamino. If LTV climbs above 45%, repay part of the debt.

6

Closing it

Repay your USDC debt ('Repay'), then withdraw your SOL ('Withdraw'). Order matters β€” debt first, then collateral.


Kamino, Jupiter Lend β€” or both?

βœ… AUDITED Both platforms are audited. The decision depends on your situation:

SituationLogical choice
First lending positionKamino β€” longer track record (since 2023), no rehypothecation
Jupiter Lend offers a better rateCompare the difference against the extra structural risk β€” a small rate edge doesn't cover it
Larger position, some experienceSplit between both β€” protocol risk diversification
A Solana network outageNeither helps β€” both live on Solana. The backup leg stays Aave on a different network

Two Solana platforms β‰  full diversification

Splitting a position between Kamino and Jupiter Lend reduces protocol risk (if one protocol has an issue, the other keeps running). But it doesn't protect you from a Solana network outage itself β€” both protocols would stand still together. That's why Aave ETH from lesson 3-4 stays your strategic backup plan.


Summary

Quick check
What is Jupiter Lend?
Practice task
0 / 5
Compare Jupiter Lend and Kamino numbers

Time to see a second lending platform live β€” safely, without depositing anything. This task takes about 15 minutes.

In this task you deposit and borrow NOTHING β€” you only compare numbers. Double-check that the domain really is jup.ag, and don't confirm any transaction in your wallet.

This is learning, not investing β€” use only small amounts you treat as tuition.

You just finished the whole DeFi Lending module: you understand collateral, liquidation, two Solana platforms, Aave, and borrowing strategy. And most importantly β€” you know how to read a new lending platform yourself: parameters, income source, risk structure. This skill isn't something you can buy β€” you just earned it.