Jupiter executive admits that Jupiter Lend's "zero contagion risk" claim was misleading

ChainCatcher reported that Jupiter Exchange COO Kash Dhanda recently responded to community concerns, stating that the team's previous claim on social media that Jupiter Lend vaults had "zero contagion risk" was inaccurate. Jupiter had previously promoted its lending vaults as having a "risk-isolated" structure and claimed that there would be "no cross-contamination between trading pairs, thereby eliminating any contagion risk." These statements have since been deleted.

In a video posted on X, Dhanda confirmed that the vaults are indeed designed with isolation in mind, but also admitted that Jupiter Lend involves the rehypothecation of assets. Last week, Solana lending platform Kamino, concerned that the related risk model might mislead users, banned Jupiter Lend's migration tool, and its co-founder publicly criticized Jupiter's risk statements.