Jupiter lending product faces risk disclosure controversy, migration tool banned by peers

2025-12-07 00:22:20

[Chain News] Jupiter Exchange’s lending product has recently become embroiled in a controversy over risk disclosure.

The issue started when they promoted their lending product’s vaults on social media as having “isolated risk” features. Some posts even claimed that “there is no cross-contamination between trading pairs, completely eliminating contagion risk.” These statements quickly drew skepticism—and the posts were quietly deleted soon after.

Jupiter’s COO, Kash Dhanda, responded by admitting that the claim of “zero contagion risk” was indeed inaccurate. In a video, he explained that while the vaults are isolated, the platform also uses rehypothecated assets. This is awkward, because rehypothecation inherently means risks can be transferred between different assets.

Adding to the drama, another lending platform on Solana, Kamino, directly banned Jupiter’s user migration tool, citing concerns that their risk model could mislead users. Kamino’s founder even published a post directly criticizing Jupiter’s “vault isolation” claim.

At its core, this controversy highlights DeFi lending protocols’ transparency issues in risk management—users need to clearly understand the potential risks their assets face, instead of being misled by marketing language.

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mev_me_maybe

· 2025-12-09 03:01

Haha, it's the same old trick again—hype first, delete later. Unbelievable. --- They still dare to claim zero risk with rehypothecation? Isn't that just self-deception? --- Kamino's ban move is ruthless. The industry's information war has begun. --- "Isolating risk" has turned into "isolating the truth," that's what it is. --- The COO personally admitted fault, which shows the problem is really significant. --- Look at lending protocols now—they disclose risks so casually. --- Even major platforms are playing word games. Who would still dare to use them? --- Kamino's ban tool move must have really pushed Jupiter's users to the edge. --- Rehypothecation and "risk isolation"—these terms don't fit together at all. --- I just love seeing these big platforms mess up. Social media post deletions are the funniest.

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RiddleMaster

· 2025-12-07 23:03

Same old tricks again, making grand promises and then crashing... Zero contagion risk? Trying to fool me with rehypothecation? --- Kamino's move to ban is really ruthless, just choking each other out and that's it. --- Jupiter's operation is truly absurd—deleting posts and changing their tune, playing it slick. --- If you're going to rehypothecate, stop boasting about "risk isolation." At least make up a more convincing story. --- The Solana lending circle is infighting again... Let's see how Jupiter handles the aftermath. --- With the COO personally admitting fault, the awkwardness is off the charts and market confidence is shrinking fast. --- This is exactly why I never believe in this "zero risk" nonsense—you can tell there's something fishy right away. --- Kamino hit back hard—now the real drama is just getting started. --- If you can't even get risk disclosure right, what are you doing in lending? What a joke. --- Deleting posts is one thing, but getting sanctioned by your peers? Serves them right.

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just_here_for_vibes

· 2025-12-07 00:52

Oh no, it's another case of "we're totally safe" getting slapped in the face... The post deletion move is really something. --- Still boasting "zero contagion" with rehypothecation? Isn't that just misleading people? --- Kamino banning the migration tool is a pretty ruthless move... --- "Isolating risk" turns into "risk can't be isolated"—that reversal was fast. --- They're all Solana lending platforms, and now they're banning each other... Is the ecosystem about to fracture? --- Zero contagion risk but using rehypothecation? I want to laugh but can't. --- I just want to know what those who believed their marketing are thinking now. --- Deleting posts and getting called out by peers—Jupiter's really socially dead this time.

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MysteriousZhang

· 2025-12-07 00:50

Haha, this is awkward. They said risk was isolated, but they're still playing with rehypothecation? --- Just deleting posts and calling it a day? This trick is way too familiar. --- Kamino directly banned migration tools—what are they hinting at... --- “Zero contagion risk” turns into “not entirely accurate.” Translation: we’re just lying to you. --- Still bragging about risk isolation while rehypothecating? Makes perfect sense, right? --- Lending platforms are exposing each other—Solana’s ecosystem is really cutthroat. --- I just want to know who still dares to put their assets in Jupiter’s vault. --- Feels like Jupiter is digging a hole for the entire lending sector. Everyone should just stop playing.

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YieldHunter

· 2025-12-07 00:49

lmao "zero contagion risk" then casually mentions re-hypothecation... technically speaking that's just admitting they don't understand correlation coefficients. if you look at the data, every lending protocol that's pulled this move ends up in the same spot. kamino blocking the migration tool is actually the most honest thing anyone's done here tbh

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ChainSpy

· 2025-12-07 00:45

Another "zero risk" scam... Deleting posts to cover things up? LOL, and they still dare to brag about isolation after rehypothecation? This operation is truly outrageous, and Kamino's banning tool just looks like they're passing the buck. Jupiter is socially dead for sure this time. Seriously, how did nobody see through this earlier... Unbelievable, "vault isolation" is a joke, in the end it still blew up. Rehypothecation = risk linkage, it's elementary school math. Kamino's ban move is pretty "smart" too, as long as someone else takes the fall... Jupiter's "risk isolation" is just an expensive gimmick.

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MysteryBoxAddict

· 2025-12-07 00:42

Here we go again... deleting posts, changing statements, re-collateralizing, same old tricks haha Really dare to claim zero contagion risk? How am I supposed to trust you then Kamino played this move well, directly disabling the migration tool, clearly not wanting people to leave

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