Solana-based liquidity protocol introduces swap margin trading

• The product aims to simplify the leverage swap process by utilizing the Orca-Dex
• Users can use USDC, SOL, BTC, and ETH as collateral and borrow against their positions

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

The new Leveraged Swaps product allows users of the protocol to simplify the leveraged swap process, which often involves a series of complicated transactions, and execute trades with one click.

In DeFi, leveraged swaps allow clients to facilitate trading by collateralizing existing assets and borrowing against their current position from an LP – “leveraging” their collateral as a safety net.

Clients can use their borrowed assets to invest in other assets and earn a return on both positions, while collateralised assets minimize risk to 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 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 much smoother,” said Barnes.

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 sets the Jet Protocol apart from its Ethereum competitor is that the Jet Protocol’s credit pools are internal.

“DeFi Saver would charge a fee to make transactions, but we don’t do that,” he said. “Rather than being an outside service provider, Jet performs transaction packaging on top of the liquidity pools that the protocol has.”

The Orca-Dex has a total value (TVL) of approximately $89 million, according to DefiLlama, making it the ninth largest log by TVL on Solana.

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

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

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

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• Bessie Liu

  blocks

  reporter

  Bessie is a New York-based crypto reporter who previously worked as a tech journalist for The Org. She received her Masters in Journalism from New York University after working as a management consultant for over two years. Bessie is originally from Melbourne, Australia. You can contact Bessie at [email protected]

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