From holding to using: tokenized stocks on Jupiter Lend

Buying tokenized stocks is a first step: because tokens are divisible, you can hold an amount worth less than one share. But much of what sets tokenized assets apart is that they are transferable and composable: other DeFi applications can use them.

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From holding to using

DeFi offers ways to use tokenized assets while you keep holding them. The main one is lending and borrowing. On Jupiter Lend, some xStocks can be used as collateral: SPYx and QQQx, which track the S&P 500 and the Nasdaq-100, and TSLAx and NVDAx, which track Tesla and Nvidia. The list grows as vaults are added: the xStock filter on the Borrow page shows the current one. With these xStocks, you can:

• Earn a Supply APY on the xStocks you supply as collateral, but only while an incentive is active. This yield does not come from the stock: it comes from incentives co-funded by Jupiter and partners, which can change or end at any time. Without one, the Supply APY is 0%.
• Borrow USDC or JupUSD against your xStocks, to use their value without selling them.
• Leverage your exposure with Multiply, which borrows against an xStock and buys more of it in one step (leverage looping), against USDC or JupUSD.

Using Jupiter Lend requires understanding how lending and borrowing work (see the Jupiter Borrow guide). When you borrow against collateral, you are exposed to liquidation risk: if your collateral loses value until your position reaches the vault’s Liquidation Threshold, part of your collateral is sold to repay your debt. Each xStock vault has its own limits, typically a loan-to-value (LTV) of 65–75% and a Liquidation Threshold of 75–85%, shown in the app. xStocks add risks of their own:

• Prices on weekends and holidays: the vaults’ oracle updates 24 hours a day, 5 days a week. On weekends and US market holidays, it stays at the last traded price while the token keeps trading onchain, so the two can drift apart.
• Pauses: xStock markets pause for about 5 minutes at each trading session change, and 24 hours before a corporate action such as a dividend or a split. While a vault shows Vault Suspended, you cannot repay or add collateral, so keep a buffer before scheduled market events.
• Single stocks move more: TSLAx and NVDAx are rated High Risk, the index-based SPYx and QQQx Medium Risk.
• Availability: xStock vaults are not available on jup.ag in some regions, and opening a new xStock position asks you to acknowledge a disclosure of these risks.

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Example strategy

For illustration only, not a recommendation: say a user holds $5,000 of tokenized equities across three xStocks:

• $2,000 of SPYx (S&P 500)
• $2,000 of TSLAx (Tesla)
• $1,000 of NVDAx (Nvidia)

They then supply these tokens as collateral on Jupiter Lend. Each token goes into its own vault, such as SPYx / USDC, so this makes three separate positions, each with its own LTV, Liquidation Threshold and Position Health. The user borrows $1,000 USDC in total, 20% of each position’s value: $400 against SPYx, $400 against TSLAx and $200 against NVDAx. That 20% leaves a wide margin before liquidation. With a 75% Liquidation Threshold, a position borrowed at 20% of its value reaches the threshold only if its token loses about 73% of its value; borrowed at 50%, a drop of about a third would be enough. Interest usually accrues on the debt too, so the ratio can creep up over time even when prices do not move. Read your vault’s actual limits in the app. The user can then use this liquidity in different ways, depending on their strategy:

• Buy more xStocks with it, which raises both their exposure and their liquidation risk: gains grow if prices rise, and losses grow if they fall. Multiply runs this loop in one step.
• Put it into a strategy that aims to earn more than the borrowing cost, keeping in mind that the borrow rate is variable and no strategy’s return is guaranteed.
• Use it for other DeFi opportunities.

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xStocks on Jupiter today

You can buy xStocks on jup.ag from the Stocks screener or from a stock page, where they appear next to other issuers’ tokens. They are not available in every jurisdiction. Several xStocks are available as collateral on Jupiter Lend, and the list is updated as new vaults are added. If you hold xStocks or use them as collateral on Jupiter Lend, Jupiter Portfolio shows your holdings and your lending positions, with each position’s health and its supplied and borrowed amounts.

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