Jupiter COO Addresses Misleading Risk Claims

According to BlockBeats, Jupiter's Chief Operating Officer Kash Dhanda recently addressed community concerns regarding previous statements about Jupiter Lend's vaults having 'zero contagion risk.' Dhanda acknowledged that the team's social media claims were inaccurate. Jupiter had previously promoted its lending vaults as having an 'isolated risk' structure, asserting that there would be no cross-contamination between trading pairs, thereby eliminating any contagion risk. These statements have since been removed. In a video posted on the X platform, Dhanda confirmed that the vaults are indeed designed to be isolated but admitted that Jupiter Lend involves rehypothecation of assets. Last week, Solana lending platform Kamino banned Jupiter Lend's migration tool due to concerns that its risk model might mislead users. Kamino's co-founder publicly criticized Jupiter's risk statements.