Smart Vaults

Smart Vaults are a vault type on Jupiter Lend, introduced with Jupiter Lend v2 (August 2026). They are powered by Jupiter AMM, a trading layer built on top of the Liquidity Layer. In a standard vault, your collateral earns Supply APY and your debt accrues Borrow APY. Smart Vaults add a third flow: your position doubles as liquidity for Jupiter AMM, and the trading fees generated by swaps routing through it flow back to your position. This is displayed in the interface as Trading APR. Jupiter’s product pages describe this design as “Dual Stream Liquidity”: one deposit, two yields.

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Standard vaults vs Smart Vaults

Smart Vaults come in two building blocks, which can be combined: Smart Vaults live under the Smart Vaults tab on jup.ag/lend, on a page titled Dual Stream Liquidity with three sections: the smart vault list (borrow), Smart Multiply, and Smart Earn. Smart vaults also appear in the standard Borrow and Multiply lists via the Smart Vaults toggle. They are distinct from Strategies, which are one-click max-leverage positions on pegged vaults.

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Smart Earn

Smart Earn is the supply-only way to use Jupiter AMM: you deposit a token pair (for example USX/USDC) that serves as pool liquidity, and earn lending and trading fees. There is no borrowing side, so there is no Position Health and no liquidation risk. Deposits and withdrawals work like any smart pair: one token or both, in Variable or Fixed Proportion. Each Smart Earn vault has a supply cap, shown as Max Supply in the interface; deposits stop once it is reached. Earnings and the current Net APY are displayed per vault.

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Smart Collateral

Smart Collateral is an opt-in feature for paired-token deposits, such as USDC/USDT or JupSOL/SOL. You can deposit one of the two assets, or both. The protocol composes your deposit into the pair at the current pool ratio, so you do not need to source both sides manually. Withdrawals are similarly flexible: you can exit into either token or both. The interface offers two input modes for this, Variable Proportion and Fixed Proportion, described in the walkthrough guide. A Smart Collateral position can earn from several sources at once:

• Lending yield from supplying into the Liquidity Layer (Supply APY).
• The asset’s native yield, where applicable (for example staking rewards on an LST).
• Trading fees from swaps routing through the collateral pair, shown as Trading APR.

The combined effect is a higher potential APY for the supplier than a standard single-asset deposit. All rates are variable.

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Smart Debt

On standard vaults, borrowed assets are a passive liability that costs interest. Smart Debt turns your liability into an active position. You borrow a token pair (for example USDC/USDT) instead of a single token, and use the borrowed assets however you want. Your debt serves as liquidity for Jupiter AMM: swap fees routing through the debt pool flow back to your position, offsetting part of your Borrow APY. In the interface, this appears as a negative Trading APR on the Borrowed Debt side, reducing your net borrow cost. When borrowing or repaying, you can act in a single token or in both tokens at the pool’s ratio. Because the fee flow works against the interest flow, the two can offset each other. In rare, short-lived periods of exceptionally high volume, the Trading APR routed through your debt can even exceed the Borrow APY, briefly flipping the net cost in your favor. Do not count on this: trading fees depend on volume and vary day to day, while borrow rates follow utilization.

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Trading APR

Trading APR is the rate generated by trading fees flowing through your position. It is displayed on both sides of a smart position:

• Positive on the Supplied Collateral side — trading fees add to your yield.
• Negative on the Borrowed Debt side — trading fees reduce your borrowing cost.

Trading APR is displayed as its own figure at the top of the position card. The aggregate Net APY shown for a smart side includes it: it is the weighted average of both legs’ APYs, plus the Trading APR. Hovering the Net APY in the interface reveals the per-token breakdown. Trading APR is variable: it depends on the trading volume routed through the pool and on the pool’s fee parameters, which you can inspect per pool on the Statistics page under the DEX tab.

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Under the hood

Each smart pair is backed by a pool on Jupiter AMM. The pool concentrates its liquidity within a price range around a center price; when the pool price reaches the bounds of that range, the pool rebalances around a new center. The Statistics page exposes these parameters per pool: Pool Price, Center price, Lower and Upper Range, and the shift time of the rebalancing, along with each pool’s trading fee and revenue cut.

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Vault types

Smart Collateral and Smart Debt can be combined. The interface distinguishes three smart vault types: At launch (August 2026), available vaults use one smart side at a time; vaults combining Smart Collateral and Smart Debt are planned. Smart Earn positions are supply-only: a smart pair with no debt side.

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Rebalancing and composition risk

Smart Debt loans are not denominated in a single token. You borrow a pair, and the composition of your debt shifts continuously as traders swap through the pool. If you borrow $1,000 USDC and $1,000 USDT, you may end up owing $800 USDC and $1,200 USDT. The total stays the same; the mix moves. The same logic applies to the composition of a Smart Collateral position. This is composition risk:

• On stable pairs (USDC/USDT), both assets track the dollar, so the composition shift has essentially no material impact.
• On correlated pairs (JupSOL/SOL), the two assets drift slightly relative to each other over time, so composition risk exists but stays small.
• At launch (August 2026), Jupiter AMM only supports correlated pairs, so the uncorrelated-pair scenario (volatile asset against a stablecoin) and its directional-bet risk do not apply.

Rebalancing is how you earn. The pool internally maintains the pair close to its correlation, so composition stays tight, while every swap routed through your position generates a fee. A useful framing: the pool is managing your debt for you, and paying you for it. The composition shifts are how you earn.

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Risks

Smart Vaults carry the standard risks of lending and borrowing on Jupiter Lend (smart contract risk, oracle risk, market and liquidity risk, liquidation risk), plus considerations specific to the DEX layer:

• Composition risk. The token mix of your collateral or debt shifts with trading activity, as described above, comparable to impermanent loss in any AMM. On correlated pairs the impact is small, but it is not zero. Pairs with low trading volume also earn fewer fees.
• Variable Trading APR. Trading fee income depends on volume routed through the pool. It can decrease or stop, and it is not guaranteed.
• Rate risk. Supply APY and Borrow APY remain variable, as on all Jupiter Lend vaults. A sustained divergence can erode a position over time.
• Additional contract surface. Smart Vaults run AMM logic on top of the Liquidity Layer your funds already sit in, which increases the contract surface compared to a simple lending position. Standard positions carry no such exposure.
• Liquidation risk. Smart positions follow Jupiter Lend’s liquidation rules, including the tick-based system. The debt-to-collateral ratio is evaluated on the aggregate USD value of both legs: a paired side is priced through its DEX share price, where each share represents the pool-ratio composition of the two tokens, quoted in the debt token. If the ratio reaches the Liquidation Threshold, part of your collateral is sold to restore the position.

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Fees

Smart Vaults use the same fee structure as Borrow. Trades routed through Jupiter AMM pay a trading fee to the pool they route through. A percentage of that fee, the revenue cut, goes to the protocol; the remainder accrues to the positions providing the liquidity. Pool parameters (trading fee, revenue cut, price ranges) are set per pool by the team multisig, and each pool’s current values are displayed on the Statistics page.

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