Solana Foundation Leader Intervenes as Kamino–Jupiter Lending Dispute Intensifies

Lily Liu's Position: Lily Liu, president of the Solana Foundation, emphasizes the importance of healthy competition in Solana's lending market, which is valued at around $5 billion, significantly less than Ethereum's $50 billion.

Feud Between Protocols: A feud has emerged between Kamino Finance and Jupiter Lend, with accusations that Jupiter Lend misled users about its risk practices, leading to concerns about potential contagion in the DeFi space.

Jupiter Lend's Defense: Jupiter Lend's co-founder, Kash Dhanda, acknowledged inaccuracies in their initial claims about risk isolation but maintained that rehypothecation is limited and contained at the asset level.

Criticism from Rivals: Kamino's founder, Marius, and Fluid's founder, Samyak Jain, have publicly criticized Jupiter Lend for misleading users regarding the isolation of their vaults, raising concerns about the overall confidence in the Solana DeFi ecosystem.