Jupiter Lend Faces Community Scrutiny Over Vault Isolation Claims

Jupiter Lend's vault isolation practices are being questioned by Solana community members, with co-founders from Fluid and Kamino publicly challenging the protocol's design claims on December 7. Samyak Jain, co-founder of Solana lending protocol Fluid, said Jupiter Lend employs restaking for capital efficiency and that vault assets are not fully isolated as previously stated. Marius, co-founder of liquidity protocol Kamino, disclosed that Kamino blocked Jup Lend's migration tool this week, stating users were misled about protocol risks. Jupiter Lend's assertion that bad debt events in one vault would not affect users in other vaults is inaccurate, as SOL depositors who borrow USDC face exposure to rehypothecation risks involving JupSOL, INF, and other nested positions, according to Marius.