Jupiter Lend's Asset Pool Questioned for "Incomplete Isolation," Users May Face Asset Looping Risk
BlockBeats News, December 7th, The independence of Jupiter Lend's various vaults has been questioned by the Solana community, with Fluid and Kamino co-founders stepping forward to state that there was no "full isolation" commitment among Jupiter Lend vaults.
Samyak Jain, co-founder of Solana's ecosystem lending protocol Fluid, acknowledged that Jupiter Lend's vaults have utilized rehypothecation for capital efficiency, and the assets among the vaults are "not entirely isolated" from each other.
Marius, co-founder of Solana's ecosystem liquidity protocol Kamino, stated that this week Kamino blocked the Jupiter Lend migration tool because users were misled and unaware of the protocol's true design and risks. Jupiter Lend has repeatedly claimed that there is no cross-asset correlation, and the notion that "if an adverse event occurs in assets from different vaults, users will not be affected" is simply absurd. In Jupiter Lend, if a user provides SOL and borrows USDC, SOL will be lent to recursive borrowers, including JupSOL, INF, and others, exposing the user to all the risks of these recursive nestings and asset collapses.
As of now, the Jupiter team has not yet come forward to clarify the situation.
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