Logo Phantom
Logo PhantomLogo Phantom
LearnCrypto 101

Solana DeFi guide: How to leverage JUP

Jonathan G.
Solana DeFi guide: How to leverage JUP

    The first round of the Jupiter airdrop was one of the largest events to ever take place on a public blockchain.

    One million wallets were eligible for the airdrop, and in the first days after its launch, JUP was one of the most traded tokens.

    Going forward, we can expect JUP to become a staple of decentralized finance (DeFi) on Solana and beyond.

    In this guide, we'll explore what you can do with your JUP tokens in Solana DeFi—apart from staking them in your cold wallet, of course!

    What is Jupiter?

    Similar to 1inch on Ethereum, Jupiter started out as a liquidity aggregator for token swaps. However, the exchange recently added GMX-style perpetual futures. And Jupiter's not done. In the future, it also plans to release a decentralized stablecoin: SUSD.

    What is the JUP token?

    JUP is a governance token that allows community members to approve, sanction, and vote on all aspects with respect to the Jupiter platform.

    How to claim JUP with Phantom?

    Our Phantom wallet is a non-custodial crypto wallet that allows you to access, manage, and interact with crypto, NFTs, and decentralized applications (dapps).

    Plus, we also enable you to earn airdrops by using decentralized applications (dapps) such as Jupiter, Drift, and Kamino.

    We also recently rolled out banners to make it easier for you to claim airdrops such as JUP directly in your Phantom wallet.

    If you were lucky enough to receive JUP in Jupiter’s first airdrop round, you might be wondering what to do with these tokens.

    Read on, we got you covered!

    What can you do with JUP?

    Before you dive into all things decentralized finance, please bear in mind that using DeFi protocols might expose you to both smart contract risks and economic attacks.

    Smart contract risk refers to vulnerabilities and flaws in self-executing contracts deployed on blockchain networks—the basis of all DeFi protocols. These risks include security vulnerabilities, coding errors, and design flaws that may lead to exploitation, loss of funds, or other unintended consequences. Additionally, external factors such as network congestion or governance changes can impact smart contract functionality as well.

    Economic attacks, on the other hand, involve manipulating market conditions or protocol parameters to exploit protocols. These attacks can include front-running, where traders profit from executing transactions ahead of others, or arbitrage opportunities that exploit price discrepancies between different platforms. Additionally, attacks on DeFi protocols mostly involve market/price manipulations, allowing the perpetrator to drain the platform of its funds.

    Alright, now, let’s explore what you can do with JUP in Solana DeFi...

    Decentralized xchange

    • Drift: You can deposit JUP as collateral and trade JUP-PERP and JUP spot on Drift—all while earning extra points. For more details, make sure to check out our Drift airdrop guide!
    • Zeta: Similar to Drift, you can also earn points on Zeta to increase your Z-Score when trading JUP-PERP. The more you trade, the higher your Z-Score. The higher your Z-Score, the larger your potential allocation if Zeta decides to airdrop a token.
    • Phoenix: The platform hasn't announced any rewards yet, but if you’re an experienced trader looking to deploy sophisticated trading strategies and algorithms, there’s no better place to trade JUP than Phoenix.

    Liquidity provision

    • Orca: At its core, Orca is an automated market maker (AMM) that makes it easy for you to buy and sell crypto assets. Instead of trading directly with other people as with a traditional order book, you trade directly through the AMM. You can deposit JUP into the liquidity pools of the AMM to earn rewards—but please make sure that you grasp concentrated liquidity and the implications of impermanent loss first.
    • Raydium: Simply put, Raydium does exactly the same as Orca. So, what's different? Well, just some technical and architectural specifics, really. As is the case with Orca, please make sure that you grasp concentrated liquidity and the implications of impermanent loss first before depositing JUP into Raydium to earn rewards.


    • MarginFi: You can deposit JUP into the platform and borrow other assets against your tokens. By doing so, you earn marginfi points. For more details, make sure to check out our marginfi airdrop guide! More on marginfi’s risk management here.
    • Solend: The platform has been around for quite some time, so its governance token—SLND—has already been released. But if you believe there’s some upside to SLND, you can deposit your JUP into Solend and borrow other assets against your tokens to earn SLND rewards. Read about oracle risks and other considerations here.

    Structured Products

    • Kamino: Initially, Kamino started out as a platform exclusively for structured products. Now, the platform offers multiple liquidity options—from borrowing and lending to vaults. For JUP, Kamino has introduced 8 vaults with different rewards that you can earn. Read about possible risks here.
    • Meteora: This platform is being built by the same team that’s behind Jupiter. At its core, Meteora is a decentralized exchange as well, offering various trading strategies and options such as pools, vaults, and farms. You can deposit your JUP into Meteora to take part in the MET stimulus program as well as triple stacking. Read about possible risks here.

    How to trade JUP with Phantom?

    Note: You need to hold SOL in your Phantom wallet to complete this process.

    With Phantom, you can buy, sell, and trade JUP—right from your laptop or phone.

    After logging-in to your Phantom browser extension or mobile app, select a wallet that holds the tokens you’d like to trade. Next, click on the swap (arrow) icon at the bottom. In the swap widget, select the token pair you’d like to trade, review the order, then submit!

    How to set up a Phantom wallet?

    If you’d like a friendly multichain wallet for crypto, DeFi, and NFTs, try us out. We offer browser extensions for Firefox, Chrome, Brave, and Edge, as well as apps for iOS and Android.

    First, download Phantom. Then, create a new wallet.

    If you’d like to fund, or send funds to, your Phantom wallet, you can do so via the “Buy” button on your asset tab. We offer various funding options, such as MoonPay, PayPal, and Robinhood to make it easy for you to fund your wallet.

    Once you do that, you're ready to go.

    How to bridge tokens to Solana with Phantom?

    If this is your first time using Solana, you might have most of your assets on other blockchains, such as Ethereum and Polygon. With our Cross-Chain Swapper, you can bridge tokens across Ethereum, Solana, and Polygon right in your Phantom wallet. Here’s how:

    Disclaimer: This guide is strictly for educational purposes only and doesn’t constitute financial or legal advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.