Did Solana's Leading Lending Platform Deceive Users? Jupiter's Risk Reversal Raises Concerns

Transparency Dispute in Solana's Lending Ecosystem: Solana's lending ecosystem is facing a significant transparency issue after Jupiter admitted its claims of "zero contagion risk" were incorrect, prompting Kamino Finance to block user migrations due to undisclosed rehypothecation risks.

Kamino's Concerns: Kamino co-founder Marius Ciubotariu criticized Jupiter for misleading users about the safety of their vaults, emphasizing the need for clear disclosure regarding rehypothecation and systemic risks associated with collateral.

Jupiter's Response: In response to the backlash, Jupiter co-founder Kash Dhanda acknowledged the inaccuracies in their previous statements and committed to implementing stricter review policies to ensure accurate communication in the future.

Defense of Protocol Architecture: Despite the controversy, Dhanda defended Jupiter's protocol architecture, asserting that their isolated vaults and risk controls minimize contagion risks, citing past performance during market volatility as evidence of the model's effectiveness.