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Build Your Own Liquidation Bot on Jupiter Lend: Earn Onchain Rewards

Build Your Own Liquidation Bot on Jupiter Lend: Earn Onchain Rewards

Jupiter Lend, the lending platform built by the team behind Jupiter Exchange and 0xFluid, just dropped an exciting update that's got the Solana community buzzing. In a recent thread on X, they announced that anyone can now build and run their own liquidation bot on the platform—completely permissionless. This move opens up new ways to earn onchain while contributing to healthier markets.

Jupiter Lend announcement banner: Earn Onchain By Building Your Own Liquidation Bot

If you're new to the concept, liquidation bots are automated tools that monitor borrowing positions on lending protocols. When a borrower's collateral value drops below a certain threshold—due to market volatility, for example—the bot steps in to liquidate the position. This means selling off the collateral to repay the loan, preventing bad debt from piling up in the system. In return, the bot operator gets a fee, often a percentage of the liquidated amount.

What makes this announcement from Jupiter Lend stand out? For starters, it's all about decentralization and accessibility. No need for special permissions or approvals—just integrate their SDK and get building. As they put it in the thread, stronger liquidations lead to healthier markets, which in turn means better loan-to-value (LTV) ratios for borrowers and lenders alike. LTV is basically how much you can borrow against your collateral; higher LTVs without increased risk are a win for everyone in DeFi.

Plus, there's real earning potential here. By running a bot, you could pocket profits from liquidation fees, all while helping keep the protocol stable. It's a symbiotic setup: builders earn, and the ecosystem gets more resilient. This is especially relevant in the wild world of Solana, where meme tokens and volatile assets are king. Efficient liquidations can prevent cascading failures during those infamous pump-and-dump cycles that meme traders know all too well.

Getting started seems straightforward. The thread points to their developer docs at dev.jup.ag/docs/lend-api/liquidation, where you can find guides on integrating the SDK. If you hit any snags, the Jupiter Lend team is ready to help—just reach out to them on X.

This update aligns perfectly with the broader trend in Solana DeFi, where projects like Jupiter are pushing for more open, builder-friendly tools. It's not just hype; it's practical innovation that could attract more developers to the ecosystem, potentially sparking new meme token strategies around lending and borrowing.

Whether you're a seasoned dev looking for side gigs or a crypto enthusiast dipping into onchain automation, this could be your entry point. Keep an eye on Jupiter Lend—they're clearly committed to making DeFi simpler and more rewarding.

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