Jupiter Lend Faces Scrutiny Over Misleading Risk Assertions
Jupiter Lend has drawn criticism after its COO, Kash Dhanda, admitted that claims of "zero contagion risk" were inaccurate. The protocol quietly removed contentious social media posts, but not before sparking a debate on transparency in decentralized finance.
Dhanda clarified in a video statement that isolated vaults do not eliminate risk entirely. Samyak Jain of Fluid confirmed Jupiter Lend employs rehypothecation—reusing collateral across a shared liquidity pool. This practice, while capital-efficient, contradicts earlier assurances of compartmentalized risk.
Marius Ciubotariu of Kamino Protocol lambasted the misrepresentation, arguing collateral reuse inherently creates systemic exposure. The incident highlights growing tensions between DeFi marketing narratives and technical realities.
