Depositors in Jupiter Lend‘s USDC vault could withdraw only a sliver of their money on Friday afternoon, more than nine hours after the Solana lending protocol warned of “a liquidity crunch impacting 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. The vault for JupUSD, Jupiter’s own stablecoin, showed about 419,000 JupUSD free out of 44.5 million, or under 1%.
The Jupiter Earn account, which speaks for the protocol’s deposit side, posted the warning at 5:01 a.m. ET. It blamed “broader market conditions” and wrote that “the protocol is functioning as expected and all funds are safe.” The account added, “This is normal and expected during events like today’s.”
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How Withdrawals Reopen
A lending pool earns depositors yield by lending their money out, so cash leaves only as fast as borrowers return it or new deposits replace it. Jupiter Earn wrote in the post that market conditions “will cause users to deposit or repay their loans,” and that as they do, “withdrawals will be able to process again.” The post gave no timeline. Jupiter Lend also caps how fast deposits can leave: its documentation says a vault’s rolling withdrawal limit usually lets up to about a quarter of supply become withdrawable every six hours.
At 2:21 p.m. ET, the SOL vault showed about 52,236 SOL withdrawable, a quarter of its 208,941 SOL, the most Jupiter Lend’s rolling withdrawal limit allows at once. The USDT vault had about 465,600 free out of 16.6 million, and the smaller EURC vault under 80 EURC of 3.8 million.
The Binance Backdrop
The squeeze followed a turbulent stretch for the market. On Thursday, Binance said user funds were safe after about $3.5 billion drained from its hot wallets, and the exchange later estimated the total impact at about $6.3 billion.
Jupiter Earn said in an earlier post that Jupiter Lend “has not been affected by the current situation unfolding with Binance” and that it has “no exposure to Binance.” Its later post tied the withdrawal crunch to market conditions.
Jupiter Earn wrote in its warning that “liquidity will soon be available again.” The USDC figure has swung across Unchained’s pulls, between about 6 and about 901 USDC. At 3:32 p.m. ET, the API showed 6.37 USDC free to withdraw from the vault’s roughly 413.7 million USDC.
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