Jupiter Lend Admits 'Zero Contagion' Claim Was Inaccurate Amid Vault Design Controversy

Citing 528btc, Jupiter Exchange's COO Kash Dhanda acknowledged on Saturday that previous social media posts claiming Jupiter Lend vaults had 'zero contagion risk' were inaccurate. The posts had been removed after backlash, with Dhanda stating the team should have issued a correction at the time. Fluid co-founder Samyak Jain also admitted Jupiter Lend uses re-collateralization to boost capital efficiency, meaning vault collateral is not fully isolated. However, he noted each vault has its own configuration and limits. Kamino co-founder Marius Ciubotariu criticized the structure, arguing that re-collateralization negates the idea of isolation. Dhanda confirmed the protocol uses re-collateralization but defended its risk-isolation mechanisms. Jupiter Lend, launched in August, has grown rapidly, with over $10 billion in total value locked.