Solana's DeFi Landscape Shaken as Jup Lend Rises in Just 14 Days

Jupiter’s DeFi lending protocol, Jup Lend, has seen explosive growth in its first two weeks, with on-chain data revealing that the platform has attracted over $1.02 billion in total deposits. The rapid accumulation of liquidity has positioned Jup Lend as a formidable entrant in Solana’s highly competitive lending market, already drawing comparisons with established protocols such as Kamino.

Launched on August 27, 2025, Jup Lend quickly captured the attention of DeFi users on the Solana network. The platform’s initial success is largely attributed to its streamlined user interface and favorable lending terms. Onchain data from Dune Analytics shows that the "Earn" section of the platform accounted for the majority of the $10.2 billion in total deposits, with $344 million deposited in this category alone within the first two weeks.

The deposit activity was most pronounced on the launch day, with over $130 million added to the Earn vaults. Among the stablecoins, USDC ($260 million) dominated the deposits, representing 75.7% of the total in the Earn component. USDG and USDT followed with 7.7% and 6.1% respectively. The rapid adoption of USDG in particular highlights its growing prominence in the Solana ecosystem, with its market capitalization now exceeding $342 million.

Retail participation has also been a key driver of early adoption. Approximately 79% of deposits were below $1,000, with most between $100 and $1,000. Conversely, withdrawals tended to be larger, with most ranging from $1,000 to $10,000, suggesting that while retail users drive the volume, larger deposits come from institutional or high-net-worth accounts.

On the lending side, Jup Lend has seen $682 million in deposits across 6,200 wallets and 29,200 transactions. The platform’s largest lending pool, JupSOL/SOL, holds $168 million in deposits and $139.2 million in active loans, representing 24.6% and 30.3% of the total, respectively. The top four pools collectively account for over 70% of total lending activity, indicating a concentration of liquidity and activity among a few key asset pairs.

Jup Lend’s rapid rise has already disrupted the lending landscape on Solana. In just one week, it achieved a market share of 13.56%, surpassing the TVL of Kamino’s stablecoin deposits, despite Kamino’s longer presence in the market. This forced Kamino to respond by slashing its liquidation penalties by 90%, reducing them from 1% to 0.1% and implementing smaller liquidation increments.

While Jup Lend’s success is promising, it still faces significant challenges, particularly in the borrowing segment. Kamino remains dominant in the broader Solana lending market, with a TVL in SOL-denominated assets over 45 times larger than Jup Lend. However, Jup Lend has already shown it can attract liquidity quickly and has established a strong foothold in the Earn category, suggesting that it is well-positioned to expand further if it can scale its borrowing side effectively.

In the short term, Jup Lend’s ability to provide favorable lending and borrowing conditions has already attracted a large number of users and liquidity providers. The platform’s early traction demonstrates that it has identified a product-market fit, but long-term success will depend on its ability to expand beyond its current user base and capture a larger share of the borrowing market. With continued innovation and user-friendly features, Jup Lend could carve out a sustainable position in Solana’s DeFi lending landscape.