The extra yield exists only if traders actually swap through those pools, which means Jupiter not only runs Solana’s largest swap router, the software most wallets and apps use to find the best price across venues, but it also owns pools that need that flow to arrive.
The company told CoinDesk the router does not favor its own vaults and sends swaps wherever the price is best.
The risk of pairing assets falls unevenly, however. Jupiter said margin is valued using primary market oracles, or data providers, so a temporary price wobble on an exchange does not trigger anything, and a position liquidates as normal once its loan-to-value ratio passes the threshold.
A genuine depeg is different. On the debt side the borrower is protected — someone borrowing $100 split between USDC and USDT would see the pool rebalance into whichever asset held its value and still owe $100. On the collateral side there is no such protection, and a supplier carries the loss on both assets if either breaks.
That is why the design is confined to correlated pairs, stablecoins against each other and SOL against its staked versions, rather than volatile assets.
“There’s been a wall between the two primary ways people earn APY onchain, lending and LPing,” said Kash Dhanda, Jupiter’s chief operating officer, referring to lending and supplying liquidity to exchanges.