Kamino Lend entered August with sustained momentum, reaching new protocol highs across key metrics despite softer borrowing activity. TVL rose to $2.69B (+9.8%) on the back of increased vault deposits, while transaction volume climbed to $11.9B (+30.6%) - setting a new monthly record.
Total deposits grew 5.2% to $4.31B, while outstanding debt dipped slightly to $1.62B (–1.6%) as stablecoin leverage cooled. Borrowers paid $10.1M in interest, and liquidations remained near record lows reflecting dampened volatility.
August also marked a month of ecosystem-level milestones. Kamino launched two new RWA markets - OnRe (reinsurance) and Huma (payment-linked financing) - unlocking diversified real-world yield onchain. The protocol celebrated its third year on mainnet with zero bad debt, zero exploits, and zero downtime. Kamino Lend contracts were formally verified onchain, solidifying its transparency and security leadership in Solana DeFi.
With volatility low, usage rising, and new market primitives onboarded, Kamino closes August with deepened resilience and a stronger foundation for vault-led growth.
1. Overview of Market Performance
August was a month of steady growth and increased activity across the Kamino ecosystem, driven by renewed capital inflows, expanding integrations, and stable market conditions.
Kamino closed the month with:
- Total Supply: $4.31B +5.21%
- Total Debt: $1.62B -1.64%
- TVL: $2.69B +9.81%
- Transaction Volume: $11.9B +30.6%
- Interest Paid: $10.1M +0%
- Liquidations: 159 +0%
- Collateral Seized: $153K –78.8%
- Distinct Wallets: 118,093 -2.99%
Activity continued to spike across markets as volume rose ~30% month over month. Stablecoins and SOL continued to dominate deposits and borrows. Liquidations remained minimal,
falling sharply in dollar terms as market volatility cooled and collateral buffers strengthened.
August was also a major month for Kamino’s ecosystem, marking key achievements across RWA onboarding, security milestones, and protocol transparency:
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RWA Summer continues with two major market launches:
- OnRe Market (August 5), tokenized reinsurance pools via stable-backed onYC, offering 11.8% APY
- Huma Market (August 8), short-term liquidity backed by real-world receivables tokenised in the PST tokens, yielding 10% APY.
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Kamino Season 4 (August 7): launched with direct KMNO incentives across earn vaults, with $1M distributed in August
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3 years on Mainnet (August 14): 0 bad debt. 0 exploits. 0 Incidents.
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Kamino Lend Contracts Verified (August 28): Kamino Lend contracts were fully verified onchain, joining a robust security stack that includes 18 audits, formal verification, and open-sourced code.
These achievements reinforce Kamino’s commitment to safety, transparency, and modularity; cementing its role as Solana’s leading credit layer for both DeFi and institutional primitives.
2. Supply, Borrowing & Revenue Trends
Kamino continued to expand in August, with total supply reaching $4.31B (+5.2%) and TVL climbing to $2.69B (+9.8%). While overall debt contracted slightly to $1.62B (-1.6%), the protocol saw a sharp increase in transaction volume rising to $11.9B for the month (+30.6%). This decoupling of debt and volume suggests a reallocation of capital from leverage to yield, as users rotated into passive vaults, tokenized real-world assets, and stablecoin-based strategies.
The Main Market remained the anchor of Kamino’s liquidity, closing the month at $2.85B in supply and $1.2B in debt, representing more than 70% of total protocol liquidity. Broader market dynamics reflected rotation across stables, LSTs, and tokenized yield assets.
Market-level trends:
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LST Markets:
- Jito remained a top LST market at $290M in supply and $134M in debt, showing strong user retention.
- Marinade was stable at $132M supply and $23m debt
- SolBlaze gained momentum, rising to $32M in supply (+60%) and $19M in debt (+58%)
- Sanctum consolidated to $12M supply (-40%) and $3.5M debt (-30%)
- Exponent rebounded to $8M supply (+60%) and $4M debt (+60%)
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JLP market continues to unwind, with supply down to $346M (-22%) and debt to $117M (-20%)
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Maple held strong at $79M supply and $40.7M debt, maintaining traction with Multiply-powered stablecoin yield strategies.
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RWA markets saw their first wave of growth:
- OnRe Market (reinsurance) reached $9M in supply and $2.7M in debt, driven by USDG incentives and Multiply strategies offering up to 30% APY at 2x leverage.
- Huma Market (receivables) launched shortly after, reaching $1.9M supply and $600K in debt within weeks.
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Smaller v2 markets like ZeusBTC, Adrena, Bonk, and xStocks are showing signs of traction.
Asset-level trends
A handful of assets saw meaningful inflows:
- xBTC added $37M in supply, leading all assets and confirming growing appetite for BTC as collateral in DeFi.
- USDC supply increased by $33M, as users rotated into passive strategies with the high yielding vaults.
- LSTs such as vSOL, dSOL, lanternSOL, and BSOL all saw moderate inflows.
The largest outflows were concentrated in three major assets:
- SOL supply dropped by $198M and SOL debt fell by $176M, marking the first significant unwind after a year of growth
- JupSOL fell by $183M, JLP by $108M as liquidity shifts back to Jupiter itself following the launch of Jup Lend
Borrowing activity declined across both risk - SOL leverage fell by $42M, JitoSOL by $12M - and stable assets - USDC, USDG, and PYUSD all showed mild debt contractions.
Kamino V2 Markets & Vaults
Kamino Lend V2 markets continued their steady growth in August, reaching $376M of supply across V2 markets (+12.6%), with $150M borrowed (+18%) and 4,278 suppliers (+18%).
The launch of Kamino Season 4 sparked a sharp rise in vault adoption, with $296M (+228%) deposited across 15 vaults. Vault composition shifted heavily toward stablecoin strategies - particularly USDC and USDG - while SOL’s share dropped from nearly half to just 16%, with no incentive program. In July alone, vaults generated $850k of interest to 7,220 suppliers (+178%).
The top vaults are:
- USDC Prime, curated by Steakhouse Finance ,with $175M supplied (+483%) by 4,286 users (+453%). This vault routes capital to Kamino’s Main and JLP markets.
- Allez USDC with $42M supplied (+223%) by 1,143 users. This vault lends to the Main, JLP, Maple and Adrena markets.
- MEV Capital SOL with $41M (+100%) supplied by 862 suppliers (+100%), diversified acrosslendingto 7 markets.
3. Kamino Stable Dollar & SOL
August marked a continuation of key trends observed in July, with stablecoins consolidating their position as the leading source of borrowing demand while SOL remained the dominant supply asset. The shift toward stablecoin strategies was further amplified by vault incentives and reduced appetite for SOL leverage amid soft price action.
SOL Markets
SOL markets experienced a slight pullback in both supply and borrowing:
- SOL supply fell to 5.24M SOL (-1M)
- SOL debt decreased to 4.65M SOL (-883K)
- Utilization stable at 88.6% (+.5%)
- Supply and borrow rates remained stable at to 5.7% and 7.6% respectively
The Main Market continued to anchor SOL liquidity, closing with 4M SOL supplied and 3.6M borrowed. V2 markets contributed marginally but offered differentiated exposure:
- Jito held 677K SOL supplied and 583K borrowed (–6%), retaining strong utilization
- Marinade slipped to 374K SOL supplied (-10%) and 341K borrowed (-1%), maintaining strong capital efficiency
- SolBlaze grew to 104K SOL supplied (+15%) and 94K borrowed (+39%), maintaining high utilization and steady adoption
- Sanctum and the restaking market remained smaller in scale, with consistent usage
Net flows showed outflows from Main, Marinade, and Jito, while SolBlaze emerged as the key growth venue. Although SOL remains Kamino’s most supplied and borrowed asset, the market is increasingly shaped by loop strategies and vault-driven capital allocation.
Kamino Stable Dollar Markets
Stablecoin markets strengthened in August, with broad-based gains across supply, borrowing, and utilization metrics:
- Kamino Dollar supply rose $848M (+$54.3M / +21.4%)
- Debt decreased to $627M (-$41.43M / -6%)
- Utilization consolidated to 74% (-10.3%)
- Borrow rate fell to 6% (-3.7%)
- Supply rate fell to 3.87% (-3.5%)
The Main Market remained the dominant stablecoin venue, with $583M in stable supply and $457M in debt bearing the drop in utilization, followed by JLP with $163M supplied stable and $117M borrowed (-21%). Maple showed steady expansion with $43.9M supplied (+13%) and $40.7M borrowed (+17%), at consistently high utilization.
At the token level, USDC led supply growth with +$77M inflows. However, debt contraction was notable across USDC (–$19.5M), USDS (–$10.8M), and USDT (–$6.4M), reflecting cautious borrower positioning and a pivot toward passive stablecoin strategies.
Vault incentives and large supplier rebalancing cycles, especially for USDG, contributed to short-term rate volatility. Despite this, the broader stablecoin lending environment is consolidating around the most liquid pairs, USDC in particular, with increased velocity but slightly lower leverage.
4. Transaction Volume and User Behavior
Kamino processed a record $11.9B in transaction volume in August, marking a +30.6% increase from July and highlighting a sharp rebound in user activity. The spike was primarily driven by increased deposit and withdrawal flows in the Main Market.
Breakdown by transaction type:
- Deposits: $4.73B +30%
- Withdrawals: $5.38B +52.8%
- Borrows: $775M +44.5%
- Repays: $1B +30.6%
- Liquidations: $150K–83%
5. Market Movements & Liquidations
Volatility remained moderate throughout August, continuing the trend from July. Liquidation activity declined further as market conditions stabilized and borrowers maintained stronger collateral positions.
Total collateral liquidated dropped to $153K, down 78.8% month-over-month, marking the lowest level since the launch of Kamino Lend V2. Most liquidations were concentrated in SOL positions within the Main Market, with no major spillover to long-tail assets.
Kamino registered just 159 liquidation events in August, a stable count compared to July, despite growing transaction volumes. Liquidator activity decreased proportionally to the drop in opportunities but remained distributed across a broad set of actors. As a result, there was no evidence of concentration or inefficiency - Kamino’s liquidation engine continued to operate smoothly with no requirement for major bonuses or protocol intervention.
6. Stress Testing
Portfolio risk across Kamino markets remained largely contained in August, though liquidity positions moved slightly closer to liquidation thresholds - particularly in the leading JLP and Main. This shift reflects modest reductions in collateral buffers, driven by market rotation and declining borrow demand.
LST-focused markets such as Jito, Marinade, SolBlaze, and Sanctum continue to show tighter liquidation margins but remain structurally more resilient. Their design - where supplied and borrowed assets are closely correlated - reduces net exposure and dampens the impact of price volatility. As such they have never experienced liquidations.
In a sharp market correction, dominant collaterals SOL, JitoSOL, JupSOL, and JLP would carry the largest liquidation exposure. These assets are also the most liquid and composable on Solana, enabling graceful position unwinding with limited price impact. Trade size analysis shows low slippage and stable price impacts for large sizes across USDC–SOL pairs.
Total Collateral at Risk & Bad Debt Exposure (ceteris paribus):
- Should an instant 30% market drop occur, $196M in collateral could be liquidated (+19.5% MoM), potentially resulting in $6.4M in bad debt (+83% MoM)
- In a 60% instantaneous crash scenario, liquidation exposure rises to $740.5M (-3% MoM), with potential bad debt reaching $106.5M (+0% MoM) under absolute worst case scenarios.
While systemic risk remains low, the data points to a marginally increased vulnerability in moderate shock scenarios (30–40% drawdowns). Nevertheless, Kamino’s high collateral liquidity and robust liquidation infrastructure continue to provide strong defenses against cascading failures.
7. Conclusions & Risk Considerations
Kamino closed August on strong footing, with TVL reaching $2.69B (+9.8%) and transaction volume surging to a record $11.9B (+30.6%). While debt contracted slightly (–1.6%), borrowing remained active with new RWA usecases, reflecting shifting user strategies stable yield strategies.
Vault adoption continued its exponential rise, ending August with $296M in deposits (+228%) and 7,220 suppliers (+178%). Stablecoin vaults led this growth, reflecting stronger demand for passive, incentive-boosted yield and growing integration of vaults into portfolio construction.
Liquidations remained low - just 159 liquidations and $153K in collateral seized (–78.8% MoM) - underscoring reduced market volatility. However, stress testing revealed a slight uptick in liquidation risk under moderate drawdowns, suggesting positions are marginally closer to thresholds than in July.