Jupiter Lend vault faces "incomplete isolation" concerns, users may bear risk of asset circular nesting

BlockBeats News, December 7, Jupiter Lend's vault independence has been questioned by the Solana community. Fluid and Kamino co-founders jointly stated that there was never a commitment to "complete isolation" between Jupiter Lend vaults.

Samyak Jain, co-founder of Solana ecosystem lending protocol Fluid, admitted that Jupiter Lend's vaults use re-staking for capital efficiency, and that assets between the vaults are "not completely isolated."

Marius, co-founder of Solana ecosystem liquidity protocol Kamino, stated: This week, Kamino blocked Jupiter Lend's migration tool because users were misled and unaware of the protocol's real design and its risks. Jupiter Lend repeatedly claimed there was no cross-correlation between assets, and that "if an adverse event occurs in assets from different vaults, users will not be affected," which is completely unfounded. In Jupiter Lend, if users provide SOL and borrow USDC, the SOL will be lent to loop borrowers, including JupSOL, INF, etc., and users will bear all the risks of these nested loops or asset collapses.

As of now, Jupiter's official team has not yet clarified the situation.