Jupiter has launched a new USDe lending market on Solana, integrated with its lending platform Jupiter Lend. Participants include crypto asset management firm Bitwise, Ethena, and lending infrastructure provider Fluid. The product is positioned as an institutional-grade on-chain lending market for large-scale funds.
Bitwise takes on the role of curator for the first time.
This marks the first time a traditional asset management institution has taken on a market curation role on Jupiter Lend. In terms of division of labor, Jupiter provides the lending venue, Bitwise is responsible for market curation and risk management, Ethena provides the core asset USDe, and Fluid is responsible for the underlying infrastructure.
Jupiter stated that this launch marks Jupiter Lend's first collaboration with a large institution and its first integration with an external asset management firm. The platform claims that this structure can gradually accommodate larger-scale institutional funds in the future.
A $200 million market adopts a segregated design
The new market is valued at $200 million and is segregated from other liquidity tiers in Jupiter Lend. This is done to isolate the risks of the USDe market from other lending pools on the platform, preventing volatility in a single market from spreading to a wider audience.
Jupiter also stated that this model provides a new way for traditional financial institutions to directly participate in on-chain lending, rather than simply allocating funds to existing DeFi protocols.
Ethena continues to diversify USDe reserves
This collaboration is also progressing in tandem with Ethena's adjustment of the USDe reserve structure. Ethena stated that perpetual contract positions currently account for only 11% of USDe reserves, with the remainder distributed across stablecoin reserves, DeFi lending, institutional lending arrangements, and other strategies.
The company has recently expanded its overcollateralized institutional lending partnerships with Anchorage Digital, Maple Institutional, and Coinbase Asset Management, and is also exploring tokenized real-world assets, commodity basis trading, and prime brokerage lending structures.
Additional information:Ethena also mentioned that it has evaluated gold-related perpetual contract markets, including PAXG and XAUT, as potential complements to its neutral strategy to reduce its correlation with the crypto market.
