Are Solana lending protocols fighting each other? Foundation President: Stop the infighting and think about how to grow the pie.

Question

[BlockBeats] The Solana ecosystem has been pretty lively lately. Foundation President Lily Liu directly called out Kamino and Jupiter and made an interesting point—the entire lending market here is only $5 billion in size. On Ethereum, it’s 10 times that, and in traditional finance? The collateral market is astronomical.

She was hinting at something: instead of dissing each other here (like “one-click position migration” or making a fuss over something someone casually said), maybe we should be thinking about how to take a bigger slice from the entire crypto space, or even from traditional finance.

This all started with Jupiter’s claim of “zero contagion risk.” Their COO, Kash Dhanda, admitted a few days ago that their previous promotions about their lending vaults being “risk-isolated” and trading pairs having “no cross-contamination” weren’t entirely accurate, and the related content has now been deleted. Last week, Kamino even blocked Jupiter’s migration tool over this, and their co-founder publicly criticized Jupiter’s risk statements.

To be honest, it’s not surprising that DeFi protocols fight over users and TVL, but Lily’s comments are a good reminder—internal competition can be exciting, but the pie itself still isn’t big enough. Maybe the real question is how to attract users and capital from traditional finance?

AirdropGrandpa · Accepted Answer

Haha, Lily Liu’s remarks can be seen as a warning, right? $5 billion vs $50 billion, while we’re still fighting among ourselves, the cake has already been eaten up.

That Jupiter “zero risk” fiasco ended pretty badly—they deleted posts and backed down right away. This is the kind of authenticity web3 is supposed to have, I guess.

Instead of fighting each other, why not think about how to get a piece of ETH’s cake? That’s the real talk.

Everyone just cares about their own interests—no wonder the ecosystem can’t grow big.

The lending market is only this big, yet everyone is still competing with each other here. Honestly, it’s hilarious.

TeaTimeTrader · Answer

Still competing over $5 billion? Come on, let's focus on making the pie bigger first, bro.

DeFiAlchemist · Answer

*adjusts alchemical instruments* the irony is delicious—they're squabbling over a 50bn pie when traditional finance's collateral markets are literally infinite. the transmutation of value requires scale, not internal cannibalization. curious how the philosopher's stone always appears only after the alchemists stop throwing shade at each other's furnaces.

TokenomicsTrapper · Answer

actually if you read the contracts... jupiter's "zero contagion risk" claim was textbook greater fool theory. they delete the docs after getting called out? classic exit pump pattern. solana ecosystem really out here fighting over 50B crumbs while traditional finance isn't even watching lmao

WhaleWatcher · Answer

Ah, here we go again with the infighting. Haven’t even gotten a bite of the big cake and already biting each other?

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Jupiter’s move this time is really hard to watch. Promised “zero risk” and then changed their tune right away—do they really think we’re all fools?

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Lily Liu made a great point. What’s $5 billion compared to traditional finance? Yet we’re still fighting amongst ourselves here.

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Wait, Kamino got suspended? What happened? How come no one’s talking about such explosive news?

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Honestly, the Solana project teams just aren’t united. There’s so much outside money, it’s such a waste.

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So is the problem that no one really has any real skills, or is the market just not big enough? Always trying to scrape money from each other.

SandwichHunter · Answer

5 billion is really too small. Stop passing the buck and hurry up to grow the pie.

SigmaBrain · Answer

The competition in the lending market is so fierce. Lily Liu's words may be blunt, but they're not wrong—we really do need to think about how to grow the pie.

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Exaggerated marketing claims and post deletions—these protocols really need to learn to be a bit more honest.

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$5 billion compared to traditional finance... the gap is so huge and yet they're still fighting among themselves. Ridiculous.

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That "zero risk" claim from Jupiter was honestly a flop. It was pretty satisfying to see them get called out in public.

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Instead of watching Kamino and Jupiter argue, it would be better to think more about how to compete with CeFi.

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This is just how the Solana ecosystem is—everything gets hyped up, and then later they have to walk it all back.

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The foundation president's remarks were a bit of a wake-up call. We really do need less infighting and more cooperation.

digital_archaeologist · Answer

In the end, it's still about directing everyone's energy outward, instead of fighting among ourselves at home... But once the risk concealment was exposed, half of the credibility was lost right away.