The Earn product in Jupiter Lend allows users to supply liquidity and earn passive yield from lending. When you deposit assets, they are added to a shared liquidity pool that other users can borrow from through Borrow or Multiply.
In return, you receive interest generated from those loans, creating an effortless way to earn yield directly on Solana.
When you make a deposit, Jup Lend issues a JL Token to your wallet, a tokenized representation of your deposit that automatically accumulates yield over time.
Supply and utilization
Each pool tracks the amount of liquidity supplied versus borrowed.
This ratio - the utilization rate - determines how efficiently the pool is being used.
- When utilization is low, borrowing demand and interest rates are lower.
- When utilization is high, borrowing demand increases, and lenders earn higher yields.
This adaptive balance keeps lending rates dynamic and liquidity efficiently distributed.
Interest rate model
Jup Lend automatically adjusts interest rates based on market demand. As borrowers use more liquidity, the borrow rate rises, and so does the APY for lenders.
This self-regulating system ensures steady returns for suppliers while maintaining capital efficiency across pools.
Borrowing flow and collateral
Liquidity from Earn is borrowed through Jup Lend’s Borrow and Multiply products.
All borrowers must provide eligible collateral (e.g., SOL, JupSOL, mSOL, JitoSOL, or stablecoins) to secure their loans.
If a borrower’s position becomes risky, for example, due to a drop in collateral value, Jup Lend’s liquidation mechanism automatically steps in to partially close the position and restore balance. This ensures lender safety and keeps the protocol fully collateralized at all times.
Yield accrual and JL tokens
When you deposit assets, you receive a JL Token (for example, JL-USDC or JL-SOL) directly in your wallet.
This token represents your share of the pool and automatically increases in value as yield accrues.
Each JL Token:
- Represents your tokenized deposit in Jup Lend.
- Accrues yield automatically, its value grows as borrowers pay interest.
- Is transferable, whoever holds the token can withdraw the underlying funds.
⚠️ Should not be burned, as it represents your claim on the pool’s liquidity.
Example:
You deposit 1,000 USDC into the Earn pool and receive JL-USDC in your wallet.
Over time, as borrowers pay interest, the value of your JL-USDC grows.
When you withdraw later, you might redeem it for 1,030 USDC, reflecting your earned yield.
JL Tokens make Earn composable and transparent, your position is visible in your wallet and can interact with other DeFi protocols if supported.