#What is the new native staking feature on Jupiter Lend?
The introduction of native staking as collateral on Jupiter Lend revolutionizes how users can leverage their directly staked SOL. This innovative feature allows users to borrow against their staked positions without needing to convert assets into liquid staking tokens. This is a significant shift, as over $30 billion in SOL has been previously locked in staking, missing opportunities in decentralized finance markets.
#How does the native staking function work?
The enhanced capabilities enable users to maintain their staked SOL positions while borrowing up to 87% of their value. Jupiter Lend identifies supported staked positions automatically, creating on-chain nsTOKEN vaults that securely represent these assets. This means that while users are utilizing the value of their staked SOL, they will still earn staking rewards as these continue to compound in the background. The liquidation threshold is set at 88%, providing users with an essential safety net as they navigate borrowing.
#Which validators are involved in this update?
Jupiter has partnered with six validators for the initial rollout of this feature, giving users a variety of options when engaging with their staked assets. Each of these validators operates its own vault and is designated by specific identifiers: Jupiter, Helius, Nansen, Blueshift, Kiln, and Temporal, each represented as nsJUPITER, nsHELIUS, nsNANSEN, nsSHIFT, nsKILN, and nsTEMPORAL. This selection allows users to choose their preferred validator while still enjoying the benefits of this new collateral option.
#Why is this important for decentralized finance?
The launch of native staking as collateral marks a significant progression for decentralized finance on the Solana network. By enabling users to access liquidity without sacrificing their staking positions, Jupiter Lend enhances the efficiency and usability of SOL within the DeFi space. This advancement positions natively staked SOL as a liquid asset within the decentralized finance landscape, ensuring users can effectively participate in lending markets while benefiting from their earnings.