Jupiter Lend USDC withdrawal liquidity recovers to tens of millions

Solana lending protocol Jupiter Lend saw its USDC withdrawal liquidity recover to roughly 29 million USDC on Oct. 31, easing an acute liquidity squeeze from the previous afternoon. CryptoSlate, The Defiant, and KuCoin all reported that API readings on Oct. 31 showed available USDC rising to between 27.9 million and 29 million. The Defiant placed available funds at about 6.3 percent of the vault's 441 million USDC in deposit claims, while CryptoSlate reported available liquidity represented about 6.6 percent of reported total assets. [1][2][3]

The liquidity rebound follows severe depletion on Oct. 30. Pluang reported that Jupiter Lend faced a liquidity crunch with only 3.35 USDC available against 418.5 million USDC in withdrawal claims at one point. CryptoSlate noted that blockchain data firm Bitquery tracked free USDC liquidity falling to just $88.89 at 16:18 UTC on Oct. 30 against $416 million owed to depositors. [1][5]

The reserve shortage coincided with broader market disruptions. The News International and CryptoNinjas both reported that Jupiter Lend suspended withdrawals on Oct. 30 following a $6.3 billion hack on Binance and widespread market volatility. CryptoNinjas added that the halt occurred due to contagion fears despite Jupiter Lend having zero direct exposure to the breach. [4][6]

USDC is a United States dollar-pegged stablecoin issued by Circle Internet Group. The protocol's partial recovery on Oct. 31 marks an initial stabilization, though available USDC remains a small fraction of total user claims. [1][2][8]