Depositors in Jupiter Lend’s USDC vault could withdraw only a tiny slice of their funds on Friday afternoon, more than nine hours after the Solana lending protocol warned that a liquidity crunch was affecting withdrawals.
When Unchained queried Jupiter’s public Earn API at 2:21 p.m. ET, it showed 8.44 USDC available to withdraw from a vault holding roughly 413.7 million USDC. Two minutes earlier, the same figure stood at 20.79 USDC. By 3:32 p.m. ET, the API showed 6.37 USDC free to withdraw from the vault’s roughly 413.7 million USDC.
Liquidity warning came early Friday
The Jupiter Earn account, which represents the protocol’s deposit side, posted its warning at 5:01 a.m. ET. It blamed broader market conditions, while saying the protocol was functioning as expected and that all funds were safe.
Jupiter Earn added: 「This is normal and expected during events like today’s.」
In an earlier post, Jupiter Earn said Jupiter Lend had not been affected by the situation unfolding with Binance and had no exposure to Binance. Its later post linked the withdrawal crunch to market conditions.
Withdrawals depend on repayments and new deposits
A lending pool generates yield for depositors by lending their money out. That means cash can leave only as borrowers repay or as new deposits come in to replace it.
Jupiter Earn said market conditions would cause users to deposit funds or repay their loans, and that withdrawals would be able to process again as that happened. The post did not give a timeline.
The account also said liquidity would soon be available again.
Rolling withdrawal limits also constrain outflows
Jupiter Lend also limits how quickly deposits can leave. Its documentation says a vault’s rolling withdrawal limit usually allows up to about a quarter of supply to become withdrawable every six hours.
At 2:21 p.m. ET, the SOL vault showed about 52,236 SOL available to withdraw out of 208,941 SOL, equal to the maximum one-quarter that Jupiter Lend’s rolling withdrawal limit allows at one time.
At the same time, the vault for JupUSD, Jupiter’s own stablecoin, showed about 419,000 JupUSD free out of 44.5 million, or under 1%. The USDT vault had about 465,600 free out of 16.6 million, while the smaller EURC vault showed under 80 EURC available out of 3.8 million.
Market turbulence followed Binance wallet outflows
The squeeze came after a turbulent stretch for the market. On Thursday, Binance said user funds were safe after about $3.5 billion drained from its hot wallets. The exchange later estimated the total impact at about $6.3 billion.
Unchained said the USDC vault’s available balance swung across its API pulls, ranging from about 6 USDC to about 901 USDC.
