JUP Jumps 10% After Jupiter Unveils New Lending Protocol

The price of JUP, the native token of Jupiter, surged as much as 10% on Friday after Jupiter announced plans for an upcoming lending protocol. The announcement was made yesterday afternoon, May 22, at the Solana Accelerate conference in New York, which ends today.

Jupiter is a decentralized exchange (DEX) aggregator on the Solana blockchain with a total value locked (TVL) of $2.64 billion, according to DeFiLlama. The new protocol, dubbed Jupiter Lend, will be powered by Fluid, a DeFi protocol developed by Instadapp with a TVL of just over $1 billion, per DeFiLlama data.

Following the announcement, JUP surged 10% before retreating and rallying several times to consolidate near $0.60. At press time, JUP is trading just under $0.60, up 3.6% in the past 24 hours, and 17.6% over the past week, according to CoinGecko.

Jupiter Lend promises loan-to-value (LTV) ratios of up to 95%, according to an X post shared by Jupiter's official account. It is designed using Fluid’s two-layer architecture that features a protocol layer and a liquidity layer.

It also reportedly features liquidation penalties of 0.10%, a consolidated liquidity hub, 1% fees, and a fully composable base layer, according to a post by @JUPCatdets, a popular Jupiter community X account. The new lending protocol is expected to roll out sometime this summer.

Lending Dominates DeFi

The news comes as lending protocols remain the largest sector in decentralized finance (DeFi) by TVL, underscoring strong user demand for lending solutions.

Currently, lending platforms account for $55 billion of DeFi’s $118 billion total TVL. This figure marks a 4% increase over the past week and a 28% jump in the past month, according to DeFiLlama.

Earlier this year, Jupiter acquired Drip Labs, a Solana-based platform known for generating digital collectibles.