Lily Liu, the president of the Solana Foundation, has entered the rising feud between Kamino Finance, a longtime participant in Solana’s lending market, and Jupiter Lend, a newer entrant into the lending area.
Jupiter launched Jupiter Lend in August, and it has already grown to $1 billion in TVL. The Solana lending market is presently valued at round $5 billion, a quantity that’s considerably dwarfed by Ethereum’s $50 billion and the trillions in TradFi collateral markets.
Solana Foundation’s president doesn’t thoughts the competitors
Lily Liu, president of the Solana Foundation, referenced the present valuation of Solana’s lending market in her publish.
That hole is what’s fueling the aggressive panorama in Solana’s lending sector. Whereas it has led to fast innovation, tensions have been rising between protocols vying for dominance.
“Hey @kamino @jup_lend, Love you each,” she wrote. “…We are able to snipe at each other (one click on lending place conversion; dunking on sloppy remarks; and so forth) or we are able to focus on capturing market share from all of crypto and then Tradfi past that.”
Because the Solana Foundation govt is worried, competitors has at all times been wholesome for the area, however it’s essential to not lose sight of the principle objective, which is capturing extra market share from Ethereum and TradFi.
Why are Kamino Finance and Jupiter Lend feuding?
Jupiter Lend had needed to deal with accusations that the protocol misled customers concerning the platform’s threat isolation and rehypothecation practices, with critics (largely founders from rival protocols like Kamino and Fluid) claiming that Jupiter Lend falsely marketed its vaults as utterly remoted, an act that would probably expose the broader DeFi area to contagion throughout market stress.
Whereas Kash Dhanda, Jupiter Lend’s co-founder, admitted that the preliminary “zero contagion” assertion was not 100% correct, the chief insisted that rehypothecation happens to generate yields on collateral, however the threat stays restricted and contained on the asset stage.
So far as Kamino’s founder, Marius is worried, Jupiter Lend’s vaults allow full inter-asset publicity that would undermine confidence in the complete Solana DeFi ecosystem. The chief has publicly criticized Dhanda’s Jupiter Lend for “deceptive customers.”
Fluid’s founder Samyak Jain pointed out that the platform’s vaults truly reuse person collateral for yield optimization, contradicting the notion of full isolation.
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