On December 7, the independence of Jupiter Lend's vaults came under scrutiny from the Solana community, with co-founders of Fluid and Kamino stepping forward to state that Jupiter Lend’s vaults have not fulfilled their promise of "complete isolation." Samyak Jain, co-founder of Solana-based lending protocol Fluid, admitted that Jupiter Lend's vaults use re-staking for capital efficiency and that assets across different vaults are "not fully isolated."
Marius, co-founder of Solana ecosystem liquidity protocol Kamino, stated: "This week, Kamino blocked Jupiter Lend's migration tool because users were being misled and were unaware of the protocol's actual design and its risks." He added that Jupiter Lend repeatedly claimed there was no cross-connection between assets, saying users "would not be affected if adverse events occurred in different vaults"—which is completely baseless. In Jupiter Lend, if a user supplies SOL and borrows USDC, the SOL is lent out to recursive borrowers including JupSOL, INF, etc., meaning users bear all risks associated with such recursive nesting or asset collapse.
As of now, Jupiter has not issued an official clarification.
SOL
137.28
-3.59%
USDC
0.9999
+0.01%