On the Solana chain, however, a cold conflict erupted over the same weekend. On Sunday morning, Lily Liu, chairwoman of the Solana Foundation, personally posted an article to mediate the conflict between Jupiter and Kamino, citing the figure that the lending market was only "$5 billion" and reminding the community ecosystem that with lending scale only one-tenth of Ethereum's, arguments should wait until later.
The "zero-infection" ancestral tablet collapses.
The incident began with the Jupiter team labeling the Jupiter Lend vault with "Zero Contagion Risk." Amidst the rumors, COO Kash Dhanda eventually admitted that this statement was "inaccurate," revealing that the Jupiter protocol code actually enabled re-collateralization, allowing users to borrow their collateralized assets a second time in pursuit of a higher APY.
Re-staking is not uncommon, but without transparency, losses from a single position can spread to the entire pool. DeFi previously caused panic precisely because of staking.
Kamino cuts off access – “Rare blockade”
After discovering the risks associated with Jupiter, Kamino took on-chain measures, directly blocking the Jupiter migration tool and disrupting users' "one-click switch" route. The official explanation was to protect liquidity providers, but the blocking action itself symbolized a fear of systemic risk, leading to arguments between users supporting the two sides.
When a top-level protocol in an ecosystem chooses to "unplug," it means that the foundation of trust in the ecosystem has been cracked, which is naturally not what the Solana community wants to see.
The principal intervened to mediate.
Despite the heated debate, reality must be faced. In the third quarter of 2025, the overall crypto lending market reached $73.6 billion, with Ethereum accounting for $41 billion and Solana only $5 billion. Foundation Chair Lily Liu succinctly pointed out the problem in a post:
Dear two protocols. Overall, our lending market is around $ 5 billion . ETH is about 10 times that. The traditional financial collateral market is thousands of times larger .
We can exchange harsh words (such as switching lending positions with one click or criticizing each other for speaking carelessly), or we can focus on seizing market share from the entire crypto market and then expand into TradFi .
The principal has spoken the truth: Ethereum has established a credit curve tested by multiple bull and bear markets, possesses risk parameters and liquidity levels familiar to whale, not to mention TradeFi. Solana, in terms of capital intensity, still needs more zeros to fall behind.
