Borrowing and lending platform Jet Protocol is based on the Solana blockchain. The protocol has recently launched a new trading product that allows for swap margin trading leveraging Orca, the automated market maker that allows users and liquidity providers (LPs) to facilitate their trades, this is similar to another platform -Uniswap.
The new product “Leveraged Swaps” will give the user the ability to simplify the process of leveraging swaps which often is considered very cumbersome and complicated. All of the transactions will be available with one click.
Leveraged swaps are trades allowing the user to facilitate trade by taking existing assets and using them as collateral to borrow against their current position in a liquidity pool, thus “leveraging” their collateral as a safety net for losses.
By doing this a customer is in essence creating a way to use their borrowed assets and invest in other assets. This create a way for the user to earn a yield on both positions while the collateral minimalists the risk on behalf of the liquidity pool.
The new product offered by Jet will allow for USDC, SOL, BTC, and ETH to be used as the collateral for trades to borrow against positions and make more trades with Solana Program Library token protocols.
Wil Barnes, CEO and co-founder of Jet had the following statement:
“This new product will ideally simplify the complexity that exists in crypto, After talking to our users and getting feedback, we wanted to simplify margin products and make transactions a lot smoother.”
The product offered by Jet is somewhat in the same vein as another product- DeFi Saver, which is a one-step management app for DeFi products residing on the Ethereum network. These products offer some of the same features in that they focus on creating simplified management tools allowing users to manage their positions on yield farms. The only difference between the two is that Jet protocol’s pools are in-house and DeFi Saver takes a fee whereas Jet protocol does not. Jet performs all of the packaging of the transactions on top of the pools of liquidity,
Currently the Orca DEX has a total locked value of $86.01 million. This makes Orca ranked as the 10th-largest protocol on Solana by TVL alone ranked by Defillama whereas DeFi Saver has a TVL of 123.27 and Jet Protocol is sitting currently at $4.8 million.
This current project is the first iteration of the product and there are plans for more revisions in the future.