Jupiter's Native Token JUP Soared 10% After the DEX Announced Plans for an Upcoming 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. By Luc.

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 City, 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, according to DeFiLlama data.

Following the announcement, JUP surged 10% before retreating and rallying several times to consolidate around $0.60. At press time, JUP is trading just under $0.60, up 3.6% over 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 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 launch sometime this summer.

Lending Protocols Form Biggest Sector In Defias DefiNow reports that lending protocols remain the biggest sector in decentralized finance (DeFi) by TVL, highlighting the high demand for lending solutions.

Currently, lending platforms make up $55 billion of DeFi's $118 billion total TVL. This marks a 4% increase week-on-week and a 28% rise month-on-month, according to DeFiLlama.

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