Jupiter Exchange's COO, Kash Dhanda, has admitted that previous claims about Jupiter Lend vaults having 'zero contagion risk' were inaccurate. The acknowledgment follows the removal of social media posts after receiving backlash. Dhanda stated that a correction should have been issued earlier.
The controversy centers around the use of re-collateralization in Jupiter Lend's vaults, which Fluid co-founder Samyak Jain confirmed is employed to enhance capital efficiency. This approach means that vault collateral is not fully isolated, although each vault has specific configurations and limits. Kamino co-founder Marius Ciubotariu criticized this structure, arguing it undermines the concept of isolation. Despite the criticism, Dhanda defended the protocol's risk-isolation mechanisms. Since its launch in August, Jupiter Lend has rapidly grown, amassing over $10 billion in total value locked.
Jupiter Lend Admits Inaccuracy in 'Zero Contagion' Risk Claims
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