Jupiter Lend Withdrawals Queue in Liquidity Crunch as Kamino Pauses SOL/BTC Borrowing After Binance Hack

Two major Solana lending protocols moved within hours of the Binance hack, and depositors in one of them are now waiting to get their money out. Jupiter JUP$0.254-5.5% Lend said at 09:01 UTC on 30 October that a "liquidity crunch" was "impacting withdrawals". That came about nine and a half hours after it said it had no exposure to Binance. Kamino Finance KMNO$0.034-9.7% paused new borrowing in its SOL/BTC Market late on 29 October. As of 09:22 UTC on 30 October, Kamino had not announced a resumption.

Binance put the estimated total impact of the hack at "around $6.3B" and suspended deposits and withdrawals, according to NBC News. TRM Labs attributes the theft with "high confidence" to North Korea's TraderTraitor unit, and traced 970,500 SOL out of Binance's Solana hot wallet shortly after 20:10 UTC.

Jupiter Lend says withdrawals will process as borrowers repay

Jupiter Lend is telling depositors that a shortage of idle cash is delaying withdrawals. The queue clears as borrowers repay or new deposits arrive. At 23:32 UTC on 29 October, the protocol's Jupiter Earn account had said Jupiter Lend "has not been affected" and had "no exposure to Binance". By the morning of 30 October the picture for depositors had changed.

In the same 09:01 UTC post, Jupiter Earn called the crunch "normal and expected during events like today's" and said liquidity "will soon be available again". It added that "the protocol is functioning as expected and all funds are safe". A user asked how the no-exposure claim and the withdrawal delay could both hold. Jupiter Earn replied at 09:14 UTC: "Both are true. We have zero exposure to Binance, no funds are held there and nothing was lost. What you're seeing is the market reacting to the news." Jupiter has not published a timeline for clearing queued withdrawals.

Jupiter Lend USDC and JupUSD vaults had almost nothing withdrawable

Jupiter's own data shows where the crunch sits: its two largest dollar vaults had almost no cash available to withdraw on the morning of 30 October. Jupiter Lend's public API, last updated at 09:18 UTC, showed about 419.6 million USDC supplied to the USDC vault. Only about 7,900 USDC of that could be withdrawn immediately. The JupUSD vault showed about 46 million JupUSD supplied and less than one JupUSD withdrawable.

The SOL vault was in a different position. The same API showed about 209,000 SOL supplied and about 52,250 SOL withdrawable, roughly a quarter of the vault. That figure matches the vault's rolling withdrawal ceiling, explained below. SOL depositors were held back by the ceiling. USDC and JupUSD depositors were held back by how little cash was left in the market.

Solana Compass's own data on the Jupiter Lend program shows activity picking up hours before Jupiter's statement. TRM Labs dates the start of the theft to 20:05 UTC on 29 October. In the six hours before 20:00 UTC, between 49 and 73 wallets per hour signed transactions of any kind with the program. Over the following six hours that rose to between 107 and 165 per hour, according to Solana Compass program analytics. The hourly count eased back to between 66 and 91 from 03:00 UTC on 30 October.

How Jupiter Lend withdrawal limits and utilization work

A lending vault is a pool of deposits that the protocol lends out to borrowers. Most of a depositor's balance is backed by outstanding loans, with only part held as cash in the vault. The share of deposits on loan is called utilization. When utilization nears its maximum, the vault holds little idle cash. A depositor who wants to leave then has to wait for a borrower to repay or for a new depositor to arrive. It works like a bank branch that has lent out nearly all its deposits: the money is owed back, but the cash drawer is close to empty.

Jupiter's documentation says this directly: "When most of an asset is borrowed, you may need to wait for repayments or new deposits to withdraw in full." Jupiter Lend adds a second limit on top. Over each "expand duration (usually 6 hours), up to a set percentage of the supply (usually 25%, up to 50% for some vaults) becomes withdrawable", according to the same page. That rolling ceiling slows a run on any single vault even when cash is available. It is the limit the SOL vault was sitting at on 30 October.

For the USDC vault, the API's own ceiling figures would have allowed far more than 7,900 USDC to leave. The constraint there was cash on hand. That matches what Jupiter Earn described: withdrawals resume as loans are repaid or deposits come in.

Kamino pauses SOL/BTC Market borrowing and blocks the attacker's wallet

Kamino pulled a different lever: it stopped new loans in one market. At 22:03 UTC on 29 October, Kamino said it was "currently unaffected by the ongoing Binance situation" and that "out of an abundance of caution, we have temporarily paused borrowing in the SOL/BTC Market". Further updates, the post added, would come only from Kamino's official X account.

Kamino co-founder Marius added detail at 22:43 UTC. According to his post, the team checked its "major collateral assets with their issuers and our partners" and saw "no exposure to the hack and no backing issues". Marius also wrote that Kamino "blocked the attacker's SOL wallet from using Kamino's infrastructure within 5 minutes of identifying it". On the pause, he added: "We expect to resume shortly." Kamino's posts covered borrowing in the SOL/BTC Market only; neither post described any limit on deposits or withdrawals.

The reason lenders moved fast is that stolen funds can be posted as collateral to borrow other assets. Decrypt reported that Aave froze its V3 markets on Ethereum mainnet after the attacker deposited USDT and borrowed about $44.9 million in ETH. Kamino users had a closer reason to ask about Binance. Kamino's vaults are offered inside Binance Wallet's DeFi tab, an integration we covered in September.

What Jupiter Lend and Kamino depositors can watch next

Jupiter Lend's public API and the vault pages in the Jupiter app show withdrawable amounts per vault, which is the clearest signal of when the USDC and JupUSD queues are easing. Jupiter Earn has said withdrawals process again as users repay or deposit, without giving a time.

For Kamino, the next marker is a resumption post for SOL/BTC Market borrowing on Kamino's X account, the channel it named for updates. Marius said on 29 October that Kamino expected to resume "shortly"; no such post had appeared by 09:22 UTC on 30 October.

Both protocols say they had no direct Binance exposure, and neither team has reported losses. The effect on Solana lending so far has come through how depositors and risk teams reacted. Kamino capped new risk by halting borrowing in one market. Jupiter Lend's dollar vaults ran down to almost no withdrawable cash as, in Jupiter Earn's words, "the market [reacted] to the news", and they now depend on repayments and new deposits to refill.