Solana-based Liquidity Protocol Launches Swap Margin Trading

Jet Protocol, a borrowing and lending platform on the Solana blockchain, has launched a new swap margin trading product leveraging Orca, an automated market maker (AMM) that allows liquidity providers (LPs) to facilitate trades, similar to Uniswap. 

Its new product “Leveraged Swaps” allows users of the protocol to simplify the leveraged swaps process which often includes an array of complicated transactions, and execute trades with one click. 

In DeFi, leveraged swaps allow customers to facilitate trade by collateralizing existing assets and borrowing against their current position from an LP — ‘leveraging’ their collateral as a safety net.

Customers can use their borrowed assets to invest in other assets and earn a yield on both positions, while collateralized assets minimize the risk on behalf of the LP.

Jet’s new product will allow users to use USDC, SOL, BTC and ETH as collateral and borrow against their positions and trade within compatible Solana Program Library (SPL) token pools to execute swaps. 

This new product will ideally simplify the complexity that exists in crypto, Wil Barnes, CEO and co-founder of Jet Protocol, told Blockworks. 

“After talking to our users and getting feedback, we wanted to simplify margin products and make transactions a lot smoother,” Barnes said. 

Jet’s latest product is similar to DeFi Saver, a one-step management app for DeFi products that exist on the Ethereum network. Both protocols focus on creating simplified management tools that allow users to manage their yield farming positions. 

Despite this, Barnes says that what differentiates Jet protocol from its Ethereum competitor is that Jet protocol’s lending pools are in-house. 

“DeFi Saver would take a fee to perform transactions, but we don’t,” he said. “Instead of being an external service provider, Jet performs the transaction packaging on top of the pools of liquidity that the protocol has.”

The Orca dex has a total value locked (TVL) of about $89 million, according to DefiLlama, making it the ninth-largest protocol on Solana by TVL.

On Ethereum, DeFi Saver currently has a TVL of around $124 million, while Jet Protocol contains less than $5 million.

This will be the first iteration of Jet’s newest product, and Barnes said that the protocol plans revise it regularly to ensure consumer needs are met.

“We want to get user feedback on these products, and engage with, not just users, but other protocols, and optimize these swap routes,” he said.

---

Get the news in your inbox. Explore Blockworks newsletters:

• Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
• Empire: Start your morning with the top news and analysis to inform your day in crypto.
• Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
• 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
• Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
• The Drop: For crypto collectors and traders, covering apps, games, memes and more.
• Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.