Jupiter Lend vault faces "incomplete isolation" concerns; Fluid and Kamino co-founders speak out together

BlockBeats news, December 7 — The independence of Jupiter Lend’s vaults has been questioned by the Solana community, with Fluid and Kamino co-founders jointly speaking out to say that the promise of “complete segregation” of its vaults is not true. Samyak Jain, co-founder of Solana ecosystem lending protocol Fluid, admitted that Jupiter Lend’s vaults use re-staking for capital efficiency and that the assets between vaults are “not completely segregated.” As a result, Jupiter Exchange is facing strong doubts from the Solana community.

Marius, co-founder of Solana ecosystem liquidity protocol Kamino, stated that this week Kamino banned the Jup Lend migration tool because users were misled and unaware of the protocol’s design and its risks. Jupiter Lend repeatedly claimed there was no cross-correlation of assets and that “if a negative event occurs in assets from different vaults, users will not be affected”—a statement described as completely unfounded. In Jupiter Lend, if a user supplies SOL and borrows USDC, the SOL will be lent to recursive borrowers, including JupSOL and INF, and users will bear all the risks of these recursive nestings or asset collapses.