Lily Liu, the president of the Solana Basis, has entered the increasing feud between Kamino Finance, an established player in Solana’s lending market, and Jupiter Lend, a extra latest entrant into the lending set.
Jupiter launched Jupiter Lend in August, and it has already grown to $1 billion in TVL. The Solana lending market is for the time being valued at spherical $5 billion, a bunch that is vastly dwarfed by Ethereum’s $50 billion and the trillions in TradFi collateral markets.
Solana Basis’s president does no longer suggestions the opponents
Lily Liu, president of the Solana Basis, referenced doubtlessly the most contemporary valuation of Solana’s lending market in her post.
That hole is what is fueling the competitive panorama in Solana’s lending sector. While it has resulted in immediate innovation, tensions had been rising between protocols vying for dominance.
“Howdy @kamino @jup_lend, Love you both,” she wrote. “…We are in a position to snipe at every other (one click on lending topic conversion; dunking on sloppy remarks; and plenty others) or we are in a position to focal level on taking pictures market part from all of crypto and then Tradfi beyond that.”
Because the Solana Basis government is anxious, opponents has repeatedly been healthy for the set, but it’ll be principal no longer to lose ogle of the major aim, which is taking pictures extra market part from Ethereum and TradFi.
Why are Kamino Finance and Jupiter Lend feuding?
Jupiter Lend had had to deal with accusations that the protocol misled users about the platform’s risk isolation and rehypothecation practices, with critics (largely founders from rival protocols admire Kamino and Fluid) claiming that Jupiter Lend falsely advertised its vaults as utterly isolated, an act that will maybe well doubtlessly present the broader DeFi set to contagion for the length of market stress.
While Kash Dhanda, Jupiter Lend’s co-founder, admitted that the initial “zero contagion” assertion used to be no longer 100% factual, the federal government insisted that rehypothecation happens to generate yields on collateral, however the risk remains restricted and contained on the asset degree.
To this point as Kamino’s founder, Marius is anxious, Jupiter Lend’s vaults enable full inter-asset publicity that will maybe well undermine confidence in your entire Solana DeFi ecosystem. The government has publicly criticized Dhanda’s Jupiter Lend for “misleading users.”
Fluid’s founder Samyak Jain pointed out that the platform’s vaults in spite of all the pieces reuse consumer collateral for yield optimization, contradicting the thought of full isolation.
