Is Jupiter Lend v2’s Smart Debt a money-making hack? 🪐💸
On high-volume days, it can literally pay you to borrow.
Here’s how 👇
→ Deposit collateral
→ Choose a Smart Debt vault
→ Borrow a single asset like USDC
→ Use the USDC normally
→ Traders swap between the assets inside your debt position
→ Their fees reduce your borrowing cost
Normally, you repay the amount borrowed plus interest.
With Smart Debt, the fees from those swaps offset your interest.
If the fees exceed the interest charged, your effective borrow rate turns negative. Your debt is earning more than it costs.
This will not happen every day & liquidation risk still applies.
But if you already borrow onchain, Smart Debt puts that debt to work for you.