Jupiter executives admitted that Jupiter Lend's claim of "zero risk of infection" was false.
TL;DR
Jupiter executives admitted that their claim of 'zero risk of infection' for Jupiter Lend was false, as the vault was segregated but involved re-collateralization. This follows criticism from Kamino and deletion of the misleading promotion.
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Odaily Odaily that Jupiter Exchange Chief Operating Officer Kash Dhanda recently responded to community questions, stating that the team's previous claim on social media that the Jupiter Lend vault had "zero risk of infection" was inaccurate. Jupiter had previously promoted its lending vault as a "risk-isolation" structure, claiming that there would be "no cross-infection between trading pairs, thus eliminating any risk of infection," but this content has since been deleted.
In a video released on the X platform, Dhanda confirmed that the vault was indeed segregated, but also acknowledged that Jupiter Lend had re-collateralized assets. Last week, Solana lending platform Kamino blocked Jupiter Lend's migration tool due to concerns that its risk models were misleading to users, and its co-founder also publicly criticized Jupiter's risk statements. (The Block)