The myth of Jupiter's lending product being "zero contagion" has been shattered, as it was immediately banned by competitor Kamino.

[Jinse Finance] Jupiter really messed up this time. Their lending product, Jupiter Lend, has long been promoted as having a “zero contagion risk” vault design, with heavy emphasis on complete isolation between trading pairs and no cross-contamination. But recently, their COO Kash Dhanda came out and admitted that this claim wasn’t exactly accurate—the marketing copy has now been quietly deleted.

Here’s what happened: Dhanda released a video trying to clarify things, saying that while they did indeed use an isolation design, he also openly acknowledged that there are rehypothecated assets within Jupiter Lend. This is a bit awkward, because rehypothecation itself can introduce chain risks, which is a far cry from the previously touted “zero contagion.”

To make things even more dramatic, another Solana-based lending platform, Kamino, directly blocked Jupiter Lend’s migration tool last week, citing concerns that their risk model could mislead users. One of Kamino’s co-founders even publicly criticized Jupiter’s claims, bringing industry doubts right to the forefront. It seems that transparency in DeFi protocol risk disclosure is still a major hurdle that can’t be ignored.