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What is Earn

Earn is the lending side of Jupiter Lend. It allows you to supply assets to lending pools and earn interest from borrowers. When you deposit tokens into a pool, they become available for other users to borrow through the Borrow or Multiply products. In return, you earn yield proportional to your share of the pool. Each lending pool has its own interest rate (APY), utilization rate, and parameters, all managed automatically by the protocol based on supply and demand.

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How it works

When you deposit assets, they are added to a shared liquidity pool. Borrowers pay interest on their loans, and that interest is distributed to lenders proportionally. In return for your deposit, Jupiter Lend issues a JL Token to your wallet. This is a tokenized representation of your deposit that automatically accumulates yield over time.
Each pool tracks the amount of liquidity supplied versus borrowed. This ratio is the utilization rate: it measures how much of the pool’s liquidity is actively being used by borrowers.
  • When utilization is low, borrowing demand and interest rates are lower.
  • When utilization is high, borrowing demand increases, and lenders earn higher yields.
This balance keeps lending rates dynamic and liquidity efficiently distributed.
Jupiter Lend adjusts interest rates based on utilization within each pool. As borrowers use more liquidity, the borrow rate rises, and so does the APY for lenders.Each pool has its own rate curve and parameters. You can inspect the current and historical rates for any asset on the Statistics page.
Liquidity from Earn is borrowed through Jupiter 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 due to a drop in collateral value, Jupiter Lend’s liquidation mechanism automatically steps in to partially close the position and restore balance. This helps protect lender funds and keeps the protocol collateralized.
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 Jupiter Lend.
  • Accrues yield automatically as borrowers pay interest. Its value grows over time.
  • Is transferable. Whoever holds the token can withdraw the underlying funds.
Do not burn your JL Token. 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.JUICED is the JL Token for the JupUSD pool. Unlike other JL Tokens, it accrues yield from two sources: borrowing interest and T-bill yield from the reserves backing JupUSD. JUICED can also be used as collateral to borrow on Jupiter Lend. See the dedicated JUICED page for details.

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Fees

Protocol fee: A 10% reserve factor is applied to all borrow interest payments. Borrowers pay the full interest rate, lenders receive 90%, and 10% goes to the protocol treasury. There are also standard Solana blockchain fees for account creation (token account rent).

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Risks

All DeFi activity involves risk. Here are the main factors to consider when supplying liquidity on Jupiter Lend:
Jupiter Lend operates entirely on-chain through smart contracts.All contracts have been audited by independent security firms (Zenith and Offside), but vulnerabilities may still exist. These contracts manage user funds, borrowing logic, and liquidation processes automatically. Any unforeseen bug or exploit could lead to partial or full fund loss.
Prices on Jupiter Lend are determined by on-chain oracles (Pyth, Chainlink, Redstone). If an oracle feed provides inaccurate or delayed data, a position could be incorrectly liquidated or valued.Jupiter Lend mitigates this risk by using multiple data sources for redundancy, enforcing freshness checks (max 300 seconds for user operations), and rejecting prices with high confidence intervals.
All lending on Jupiter Lend is overcollateralized: borrowers must always lock more value than they borrow.In extreme volatility, a borrower’s collateral value could drop faster than the system can liquidate it, which may lead to temporary bad debt in a pool.Jupiter Lend uses an efficient tick-based liquidation mechanism to minimize this risk by clearing unhealthy positions quickly.
The APY you earn depends on market activity. It is not fixed. If fewer users borrow from the pool, your yield decreases.In rare cases of extreme volatility or mass withdrawals, it may take time before all liquidity is available for withdrawal, as funds are tied up in active loans. Dynamic withdrawal limits also apply to protect the protocol from sudden outflows.You can monitor each pool’s utilization rate and available liquidity in real time on the Statistics page.
If you supply or borrow stablecoins (like USDC, USDT, USDG, or USDS), a depeg event could temporarily affect the pool’s balance.Jupiter Lend mitigates this by using multiple price sources and enforcing a 1:1 USD peg for major stablecoins, but external events (issuer risk, network disruptions) can still impact stability.
Jupiter Lend is a decentralized protocol. You remain in control of your wallet and keys.Using compromised wallets, fake websites, or malicious browser extensions could expose your funds to phishing or unauthorized transactions.
Always use official Jupiter interfaces and verify URLs before interacting with the protocol.