Solana Foundation President Lily Liu has had enough of the drama.

In a pointed post on X this week, Liu urged the ecosystem’s lending protocols to stop fighting over scraps and start expanding the market instead. Her message was blunt: Solana’s entire lending sector is roughly $5 billion—barely one-tenth the size of Ethereum’s and a rounding error next to traditional finance’s multi-trillion-dollar credit markets.

“Instead of arguing about one-click migration tools and risk disclaimers, we should be focused on growing the pie,” she wrote. “We can compete with each other, or we can compete with the rest of crypto and the rest of traditional finance. The direction is up to us.”

The statement landed in the middle of a heated feud that has dominated Solana DeFi discourse for weeks.

At the center of the storm is Jupiter Lend, the new lending product from Solana’s largest DEX aggregator. When Jupiter launched its private beta earlier this year, team members repeatedly claimed the protocol’s “isolated vaults” carried “zero contagion risk”—a bold selling point in a space scarred by cascading liquidations.

Those claims have now been walked back.

In a video posted this week, Jupiter COO Kash Dhanda (known in the community as the “Cat-Herder”) admitted the messaging was inaccurate. While vaults are configurable independently, deposited assets can be rehypothecated—reused across the protocol for efficiency—which creates indirect linkages. In plain English: a blowup in one vault could, under extreme conditions, affect others.

“We deleted the tweets to prevent further confusion,” Dhanda said. “In hindsight we should have issued a correction immediately instead of quietly removing them.”

The admission followed sharp criticism from rival teams. Kamino Finance briefly blocked Jupiter’s one-click migration tool, arguing users were not being properly warned about rehypothecation risks. Other protocols piled on, turning what started as a technical disagreement into a full-blown public spat.

Lily Liu’s intervention reframes the entire episode.

Rather than taking sides, she highlighted the bigger picture: all of Solana’s lending protocols combined are still tiny. Marginfi, Kamino, Solend, Drift, Save, and now Jupiter Lend are competing for slices of a $5 billion market when the real opportunity lies in the hundreds of billions (and eventually trillions) sitting in traditional fixed-income and credit markets.

Solana has clear advantages in that race: sub-second settlement, fees under a penny, and a mobile-first user base that already exceeds 80 million monthly active wallets. Tokenized treasuries, on-chain corporate bonds, and emerging-market micro-lending are all within reach—if the ecosystem can move in the same direction.

Liu’s track record gives her words weight. Before joining the Solana Foundation, she co-founded Earn.com (sold to Coinbase for ~$100 million) and spent years in traditional finance and emerging markets. She has repeatedly described Solana as the “Everything Chain,” the TCP/IP equivalent for global capital markets.

The numbers back her up. Ethereum took years to reach $50 billion in lending TVL; Solana has sprinted past $10 billion total DeFi TVL in under two years of serious traction. With Bitcoin near all-time highs and U.S. regulatory clarity improving, 2026 could be the year real-world assets flood on-chain. The question is which chain captures most of that inflow.

Infighting over migration tools and Twitter threads won’t decide the winner. Building better products, clearer risk disclosures, and shared infrastructure will.

Jupiter’s misstep, while embarrassing, is ultimately a growing pain. The team has since updated documentation and emphasized that no DeFi protocol is truly contagion-proof in black-swan scenarios. Many in the community praised the transparency; others used it as ammunition. Either way, the incident has forced every lending team to sharpen their messaging—an unintended but healthy outcome.

For users, the takeaway is simple: read the docs, understand rehypothecation, and diversify. For builders, Liu’s message is louder: the market is big enough for multiple winners if everyone focuses on expansion rather than extraction.

Solana’s lending sector is still in its first inning. Whether it stays a $5 billion niche or becomes a $500 billion gateway to global finance depends on one decision: keep fighting each other, or start competing with the rest of the world.

Lily Liu has made her preference clear. The ecosystem now has to choose.

Solana Foundation President Lily Liu has had enough of the drama.

In a pointed post on X this week, Liu urged the ecosystem’s lending protocols to stop fighting over scraps and start expanding the market instead. Her message was blunt: Solana’s entire lending sector is roughly $5 billion—barely one-tenth the size of Ethereum’s and a rounding error next to traditional finance’s multi-trillion-dollar credit markets.

“Instead of arguing about one-click migration tools and risk disclaimers, we should be focused on growing the pie,” she wrote. “We can compete with each other, or we can compete with the rest of crypto and the rest of traditional finance. The direction is up to us.”

The statement landed in the middle of a heated feud that has dominated Solana DeFi discourse for weeks.

At the center of the storm is Jupiter Lend, the new lending product from Solana’s largest DEX aggregator. When Jupiter launched its private beta earlier this year, team members repeatedly claimed the protocol’s “isolated vaults” carried “zero contagion risk”—a bold selling point in a space scarred by cascading liquidations.

Those claims have now been walked back.

In a video posted this week, Jupiter COO Kash Dhanda (known in the community as the “Cat-Herder”) admitted the messaging was inaccurate. While vaults are configurable independently, deposited assets can be rehypothecated—reused across the protocol for efficiency—which creates indirect linkages. In plain English: a blowup in one vault could, under extreme conditions, affect others.

“We deleted the tweets to prevent further confusion,” Dhanda said. “In hindsight we should have issued a correction immediately instead of quietly removing them.”

The admission followed sharp criticism from rival teams. Kamino Finance briefly blocked Jupiter’s one-click migration tool, arguing users were not being properly warned about rehypothecation risks. Other protocols piled on, turning what started as a technical disagreement into a full-blown public spat.

Lily Liu’s intervention reframes the entire episode.

Rather than taking sides, she highlighted the bigger picture: all of Solana’s lending protocols combined are still tiny. Marginfi, Kamino, Solend, Drift, Save, and now Jupiter Lend are competing for slices of a $5 billion market when the real opportunity lies in the hundreds of billions (and eventually trillions) sitting in traditional fixed-income and credit markets.

Solana has clear advantages in that race: sub-second settlement, fees under a penny, and a mobile-first user base that already exceeds 80 million monthly active wallets. Tokenized treasuries, on-chain corporate bonds, and emerging-market micro-lending are all within reach—if the ecosystem can move in the same direction.

Liu’s track record gives her words weight. Before joining the Solana Foundation, she co-founded Earn.com (sold to Coinbase for ~$100 million) and spent years in traditional finance and emerging markets. She has repeatedly described Solana as the “Everything Chain,” the TCP/IP equivalent for global capital markets.

The numbers back her up. Ethereum took years to reach $50 billion in lending TVL; Solana has sprinted past $10 billion total DeFi TVL in under two years of serious traction. With Bitcoin near all-time highs and U.S. regulatory clarity improving, 2026 could be the year real-world assets flood on-chain. The question is which chain captures most of that inflow.

Infighting over migration tools and Twitter threads won’t decide the winner. Building better products, clearer risk disclosures, and shared infrastructure will.

Jupiter’s misstep, while embarrassing, is ultimately a growing pain. The team has since updated documentation and emphasized that no DeFi protocol is truly contagion-proof in black-swan scenarios. Many in the community praised the transparency; others used it as ammunition. Either way, the incident has forced every lending team to sharpen their messaging—an unintended but healthy outcome.

For users, the takeaway is simple: read the docs, understand rehypothecation, and diversify. For builders, Liu’s message is louder: the market is big enough for multiple winners if everyone focuses on expansion rather than extraction.

Solana’s lending sector is still in its first inning. Whether it stays a $5 billion niche or becomes a $500 billion gateway to global finance depends on one decision: keep fighting each other, or start competing with the rest of the world.

Lily Liu has made her preference clear. The ecosystem now has to choose.