Jupiter Lend exposed for fraudulent vault design, Kamino directly bans migration tools

[Crypto World] On December 7, something happened on the Solana side. Jupiter Lend’s vault design was exposed by the community—the promised “complete isolation” didn’t actually happen.

Fluid co-founder Samyak Jain directly admitted: in order to improve capital efficiency, Jupiter Lend did implement rehypothecation, meaning the assets in each vault are not truly independent. To make matters worse, Kamino co-founder Marius came forward revealing that they directly banned Jupiter Lend’s migration tool this week because users were being misled and had no idea how much real risk they were taking.

Marius gave an example: if you deposit SOL and borrow USDC on Jupiter Lend, your SOL will be lent out to loop borrowers—like JupSOL, INF, and so on. Here’s the problem: if these nested assets blow up, you’re on the hook too. The “vaults don’t affect each other” claim Jupiter Lend kept promoting? That’s complete nonsense.

With things blowing up like this, Jupiter’s official team still hasn’t made a statement. The Solana DeFi community is now buzzing, and some people are digging up old issues to check if other protocols have similar problems. This whole episode has taken another hit on the ecosystem’s trust.