Kamino Lend grew for a second consecutive month in September, with supply up 4.4% to $2.64B and debt up 4.0% to $1.04B. Activity rose faster than balances, with transaction volume up 56% and interest paid by borrowers up 13.7%.
Real-world assets led the growth. RWA collateral rose 19.1% to $537.8M, now a fifth of supply, helped by new markets such as AUTO and USDai. Kamino Fixed Rates also launched, with its first two offers on AUTO and OnRe already holding $21.5M at month-end.
1. Market Context and SOL Price
September was a month of new products for Kamino Lend: fixed-rate borrowing went live and several real-world asset markets opened, while SOL recovered from a mid-month dip to finish higher.
- Total Supply: $2.64B (+4.4% MoM vs $2.53B)
- Total Debt: $1.04B (+4.0% MoM vs $1.00B)
- SOL Price: $119.05 daily average on September 30 (+15.7% MoM)
- Transaction Volume: $6.09B (+56.3% MoM)
- Interest Paid: $4.72M (+13.7% MoM, interest paid by borrowers, 30 days against 31)
- Liquidations: 725 events (+17.7% MoM)
- Collateral Seized: $436.3K (-6.8% MoM)
- Average Liquidation Size: $602 (-20.8% MoM)
SOL dipped below $100 mid-month before rallying to finish up 15.7%, lifting the value of SOL collateral on Kamino. Kamino’s balances held up through the dip. Supply stood at $2.62B on September 15, above its $2.52B start, and peaked at $2.79B on September 27. Withdrawals slightly exceeded deposits over the month, at $2.47B against $2.45B, and repay volume ($0.70B) again exceeded borrow volume ($0.47B).
Kamino Ecosystem Updates:
- Kamino Fixed Rates launched on AUTO at 5.3% to 5.75% (Sep 21), then OnRe at 8% (Sep 25).
- Institutional Commodity Yield vault raised its capacity by $20M (Sep 16) and passed $50M in deposits (Sep 29).
- USDai market live, curated by Allez Labs, with $50K of USDC rewards over its first two months (Sep 24), and passed $10M of supply within four days (Sep 29).
- Plume Vaults market live, curated by Re7 Labs, with nOPAL as collateral to borrow USDC (Sep 8).
- ZCASH market live, curated by Allez Labs, with ZEC as collateral to borrow USDC (Sep 7).
- solmF-ONE market live, curated by Steakhouse, bringing tokenized private credit from Fasanara Capital, issued by Midas (Sep 1).
- OnRe market passed $300M of supply (Sep 19), peaking at $307.5M on September 23 before closing the month at $270.8M.
- tGBP market live, curated by Steakhouse (Sep 23).
2. Macro View: Liquidity by Category
Kamino’s newer markets drew capital in September, lifting real-world assets to 20.4% of supply from 17.9%. Stablecoins remain the largest category at 39.2%, with SOL and LSTs together at 34.6%.
| Category | Supply | Share | Supply MoM | Debt | Debt MoM |
|---|---|---|---|---|---|
| Stablecoins | $1,035.7M | 39.2% | -5.5% | $724.9M | -0.5% |
| LSTs | $601.5M | 22.8% | +8.3% | $2.9M | +9.5% |
| RWAs | $537.8M | 20.4% | +19.1% | $19.9M | from $0.2M |
| SOL | $313.1M | 11.9% | +8.1% | $287.8M | +8.8% |
| BTC | $86.8M | 3.3% | +5.1% | $1.9M | -13.1% |
| Other | $66.2M | 2.5% | +23.0% | $0.8M | +31.1% |
Supply tracked the SOL price through the month: SOL and LST balances dipped into mid-month and recovered after September 16, while tokenized assets grew steadily.
The largest category gain, $86.1M (+19.1%), came from real-world assets.
Stablecoins declined $60.0M, mainly USDe and USX. Stablecoin debt held nearly flat (-0.5%) against that lower supply, lifting stablecoin utilization from 66.5% to 70.0%.
LSTs added $46.1M (+8.3%), led by dfdvSOL, and SOL supply rose 8.1% with the price. Smaller categories also grew, with BTC up 5.1% to $86.8M and remaining assets such as EUROP and ZEC up 23.0% to $66.2M.
Major Inflows: USDC (+$36.4M), PST (+$34.3M), AUTO (+$34.1M), dfdvSOL (+$22.0M), wYLDS (+$20.0M).
Major Outflows: USDe (-$35.1M), dSOL (-$30.9M), PRIME (-$28.5M), SOL (-$20.9M), USX (-$19.9M).
PST led the tokenized inflows in the Huma market, followed by AUTO. dfdvSOL extended its August inflow to reach $47.4M. On the outflow side, PRIME and ONyc contracted, though ONyc remains the largest RWA at $175.8M.
USDC led new borrowing (+$33.1M), followed by wYLDS (+$20.0M), borrowed at a fixed rate against AUTO, while PYUSD, SOL, USX and USDG borrowing declined.
3. Risk and Liquidations
Distance to Liquidation (DTL): Correlated vs Uncorrelated Positions
Most borrowing remains well clear of liquidation. Uncorrelated pairs are those where collateral and debt move independently, such as SOL against USDC. Correlated pairs move together, such as an LST against SOL.
Uncorrelated positions:
| Tier | DTL range | Share | August share | Borrow value | August | MoM | Collateral-debt pairs |
|---|---|---|---|---|---|---|---|
| Critical | < 5% | 0.5% | 0.2% | $2.01M | $0.62M | +221.7% | 181 |
| Warning | 5-10% | 1.3% | 0.8% | $4.80M | $3.03M | +58.8% | 372 |
| Elevated | 10-15% | 3.0% | 3.6% | $11.36M | $13.10M | -13.3% | 474 |
| Monitor | 15-25% | 23.1% | 7.7% | $87.69M | $27.77M | +215.8% | 1,111 |
| Safe | > 25% | 72.1% | 87.7% | $273.46M | $316.83M | -13.7% | 15,084 |
Correlated positions:
| Tier | DTL range | Share | August share | Borrow value | August | MoM | Collateral-debt pairs |
|---|---|---|---|---|---|---|---|
| Critical | < 1.5% | <0.1% | <0.1% | $0.03M | $0.28M | -89.0% | 38 |
| Warning | 1.5-4% | 22.1% | 25.4% | $201.84M | $227.61M | -11.3% | 473 |
| Elevated | 4-7% | 39.0% | 34.4% | $357.02M | $307.29M | +16.2% | 1,357 |
| Monitor | 7-10% | 5.8% | 8.6% | $52.79M | $76.64M | -31.1% | 748 |
| Safe | > 10% | 33.2% | 31.6% | $303.50M | $282.72M | +7.4% | 10,809 |
In the uncorrelated book, Critical exposure rose from $0.62M to $2.01M and Warning from $3.03M to $4.80M. Critical sits entirely in the SOL/BTC market, mostly stablecoin collateral borrowing cbBTC or pSOL, plus SOL borrowing USDC. Warning is broader, led by stablecoin collateral borrowing SOL and cbBTC collateral borrowing USDC.
Monitor exposure increased most, from $27.8M to $87.7M, led by large dSOL positions borrowing USDC (about $47M), the same positions behind the stress-test step at a 30% drop, and an hSOL position ($10.4M). Safe still holds 72.1% of uncorrelated exposure.
Correlated pairs carry most of their value in the Warning and Elevated tiers by design. Both legs move together, and these positions can run close to their threshold with little exposure to a SOL price move. USDe against PYUSD and LST loops against SOL make up most of the book. In the correlated book, the Elevated share rose from 34.4% to 39.0% and the Warning share fell from 25.4% to 22.1%. The Critical share stayed below 0.1%, at $0.03M.
Liquidation summary (September):
| Metric | September | August | MoM |
|---|---|---|---|
| Events | 725 | 616 | +17.7% |
| Collateral seized | $436.3K | $468.3K | -6.8% |
| Debt repaid | $431.9K | $460.5K | -6.2% |
| Average size | $602 | $760 | -20.8% |
Excludes 17,490 repeated small liquidations of two OnRe positions ($10.9K seized).
Liquidations stayed small: $436.3K of collateral across 725 events, 6.8% less value than August. SOL collateral against USDC debt was the main pair ($245.5K), and the busiest day, September 15 at $87.4K, coincided with the SOL price low. USDC collateral borrowing SOL followed at $108.1K. The two SOL pairs make up 81% of the month’s value, and no other pair exceeded $20K.
| Size bucket | Volume | Events |
|---|---|---|
| $0-1K | $37.0K | 672 |
| $1K-10K | $150.6K | 43 |
| $10K-100K | $248.7K | 10 |
| OnRe repeat liquidations (excluded) | $10.9K | 17,490 |
The ten largest liquidations, each between $10K and $100K, account for 57% of the value. Liquidations under $1K made up 93% of events but only 8% of value.
Stress Testing:
Volatile assets, including tokenized equities, take the stated drop. Stablecoins and NAV-priced RWAs hold their price, with a 10% NAV decline shown as a sensitivity.
| Price shock | Collateral at risk | August | MoM | Potential bad debt | Positions at risk | At risk, RWA NAV -10% | Bad debt, RWA NAV -10% |
|---|---|---|---|---|---|---|---|
| -10% | $3.9M | $2.4M | +63% | $0.0M | 214 | $117.1M | $0.0M |
| -20% | $24.0M | $17.2M | +40% | $0.0M | 612 | $137.2M | $0.0M |
| -30% | $173.3M | $65.9M | +163% | $0.1M | 1,257 | $286.4M | $0.1M |
| -40% | $238.4M | $204.0M | +17% | $1.5M | 3,911 | $351.6M | $1.5M |
| -60% | $455.5M | $468.5M | -3% | $24.2M | 11,746 | $568.7M | $24.2M |
Down to a 20% drop, collateral at risk stays below $25M, under 1% of supply. Potential bad debt stays near zero down to a 30% drop, as in August. Most of the jump between -20% and -30% comes from two large dSOL positions borrowing stablecoins ($108.4M). The RWA sensitivity adds about $113M of collateral at risk but no bad debt, as those positions remain solvent.
Liquidation Cascade and On-Chain Exit Depth (SOL)
The cascade model estimates the SOL collateral liquidators would sell as SOL falls, against the on-chain depth to exit into dollars. For SOL collateral in the SOL/BTC market, on-chain liquidity absorbs liquidation selling with less than 2% price impact down to about a 38% SOL drop, against 48% in August.
Two positions account for most of the change. The largest SOL position, borrowing $10.1M of PYUSD, withdrew about a quarter of its SOL during the month, moving its liquidation point from about a 49% drop to about 34%. A new $8.5M SOL position opened in September adds the second block, at about a 26% drop.
| SOL price drop | Cumulative SOL sell pressure | August | MoM | Price impact to clear | 2% depth coverage | 5% depth coverage |
|---|---|---|---|---|---|---|
| -10% | $0.33M | $0.47M | -30.9% | 0.05% | 45.0x | 97.9x |
| -20% | $2.2M | $2.0M | +8.0% | 0.19% | 6.8x | 14.7x |
| -30% | $6.7M | $5.0M | +33.4% | 0.74% | 2.2x | 4.8x |
| -40% | $17.1M | $9.5M | +79.6% | 2.32% | 0.86x | 1.87x |
| -50% | $28.2M | $18.9M | +49.0% | 2.84% | 0.52x | 1.13x |
4. Per-Market Micro Analysis
Spotlight: Kamino Fixed Rates
Kamino Fixed Rates, in private beta since August, went live on September 21 (Kamino, September 21). Borrowers lock a rate for a set term, here 30 days, in reserves kept separate from the variable pools. Utilization in the variable pools does not change the borrower’s rate during the term. At term end the loan rolls into a new term at the same rate if the reserve has liquidity and no lender is queued to withdraw. Otherwise it moves to the variable reserve, and if that is not possible the debt is repaid gradually from the borrower’s collateral. Liquidity comes from vaults and from lenders depositing directly into the fixed-rate reserves.
The first offer, wYLDS borrowed against AUTO at 5.3% to 5.75% with HastraFi (Figure), reached its $20.0M cap within five days. A second offer followed on September 25 in the OnRe market, USDC against ONyc at 8% fixed, a rate that held flat while the market’s variable USDC rate moved between 7.6% and 9.6% (Kamino, September 25). Fixed-rate supply closed the month at $21.5M.
Growing markets: AUTO (+873.6% to $64.9M), Huma (+338.3% to $75.3M), Maple (+19.7% to $133.7M), Superstate (+15.1% to $38.1M), SolBlaze (+10.3% to $16.4M), Jito (+9.8% to $46.6M).
Contracting markets: Solstice (-70.2% to $15.4M), Prime (-21.6% to $188.2M), reUSD (-16.3% to $19.1M), Ethena (-12.5% to $455.5M).
AUTO and Huma drove the growth, with Huma’s PST inflow and AUTO deposits each adding over $30M. Ethena and Prime contracted as USDe and PRIME deposits declined. Solstice contracted after the September 16 PT-USX and PT-eUSX maturities, as $18.8M of PTs were redeemed and the related USX loops unwound (USX debt down $12.4M), and $4.4M rolled into the December 1 PTs.
Among the month’s new markets, two stand out:
- USDai ($10.9M market size, including $6.0M of sUSDai collateral), curated by Allez Labs, lets holders of sUSDai borrow USDC. sUSDai is the yield-bearing version of the USD.AI synthetic dollar, and its yield comes from GPU-backed loans.
- Plume Vaults ($9.9M market size, including $4.7M of nOPAL collateral), curated by Re7 Labs, pairs nOPAL collateral with USDC borrowing. nOPAL is a Nest Credit vault token backed by Brazilian small-business card receivables.
Smaller markets also opened in September, with Schuman EUROP Prime at $4.5M supplied, ZCASH at $4.4M, solmF-ONE at $0.6M and tGBP at $0.3M.
Market snapshot (month-end):
| Market | Supply | Supply MoM | Debt | Debt MoM | Util |
|---|---|---|---|---|---|
| SOL/BTC | $1,139.8M | +5.3% | $453.2M | +8.7% | 40% |
| Ethena | $455.5M | -12.5% | $202.5M | -14.7% | 44% |
| OnRe | $270.8M | +6.1% | $88.6M | +5.3% | 33% |
| Prime | $188.2M | -21.6% | $79.6M | -22.9% | 42% |
| Maple | $133.7M | +19.7% | $57.1M | +23.9% | 43% |
| Huma | $75.3M | +338.3% | $28.7M | +329.2% | 38% |
| JLP | $72.0M | +4.5% | $22.9M | +4.7% | 32% |
| AUTO | $64.9M | +873.6% | $26.6M | +1,088.6% | 41% |
| Jito | $46.6M | +9.8% | $21.4M | +9.4% | 46% |
| Superstate | $38.1M | +15.1% | $7.5M | -5.4% | 20% |
| xStocks | $28.0M | +5.5% | $5.3M | +3.0% | 19% |
| reUSD | $19.1M | -16.3% | $8.2M | -15.3% | 43% |
| SolBlaze | $16.4M | +10.3% | $7.6M | +10.3% | 46% |
| Solstice | $15.4M | -70.2% | $6.0M | -67.5% | 39% |
| Obligate | $12.2M | -0.4% | $4.6M | +0.5% | 38% |
| USDai | $10.9M | new | $4.5M | new | 41% |
| Plume Vaults | $9.9M | new | $3.3M | new | 34% |
| Sentora xStocks | $8.9M | new | $1.2M | new | 13% |
Sentora xStocks, a second tokenized-equity market, opened with $8.9M supplied.
SOL/BTC (previously Main) extended its lead to 43.2% of protocol supply, from 42.3% on September 1. Ethena remains second at $455.5M (17.2%). Concentration in the two largest markets eased, from 63.0% to 60.4% of supply.
5. Kamino Lending Vaults
| Vault | Token | Deposits | MoM | Realized APY (September) | Incentive (Sep median) |
|---|---|---|---|---|---|
| Ethena PYUSD Prime | PYUSD | $217.5M | -13.4% | 3.59% | none |
| Sentora PYUSD | PYUSD | $131.6M | +20.6% | 3.45% | +2.51% |
| Rockaway RWA USDC | USDC | $69.9M | +186.0% | 5.22% | +0.03% |
| Kamino Institutional Commodity Yield | USDC | $50.4M | +57.4% | 7.72% | none |
| Steakhouse USDG High Yield | USDG | $42.7M | -3.9% | 5.00% | +2.73% |
| Steakhouse USDC | USDC | $20.4M | +9.0% | 4.60% | none |
| Allez SOL | SOL | $10.5M | +33.4% | 4.66% | +0.19% |
| Allez USDC | USDC | $10.0M | -2.9% | 5.69% | +0.04% |
| Plume x Re7 USDC | USDC | $5.2M | new | 1.77% | +6.52% |
Rockaway RWA USDC was the month’s fastest-growing vault, nearly tripling to $69.9M, while Kamino Institutional Commodity Yield reached $50.4M after its $20M capacity raise, the highest yield in the table at 7.72%. Sentora PYUSD grew 20.6% to $131.6M. Ethena PYUSD Prime remains the largest vault at $217.5M despite a 13.4% decline.
Realized yields rose at Ethena PYUSD Prime (2.25% in August to 3.59%), Steakhouse USDG High Yield (3.82% to 5.00%) and Sentora PYUSD (3.22% to 3.45%). Rockaway RWA USDC eased from 5.94% to 5.22%.
6. Transaction Volume
Transaction volume rose 56.3% to $6.09B, from $3.90B in August. SOL/BTC carried $4.86B, followed by OnRe at $0.53B.
Volume by type:
| Type | Volume | MoM |
|---|---|---|
| Withdraw | $2.47B | +71.9% |
| Deposit | $2.45B | +41.1% |
| Repay | $0.70B | +60.9% |
| Borrow | $0.47B | +63.3% |
All four transaction types grew, led by withdrawals at +71.9%.
Transactions above $100K accounted for 79.5% of volume, against 69% in August, with the $1M+ bucket more than doubling to $3.43B. Returning large users drove most of it. 25 wallets active above $1M in both months moved $3.19B in September, against $1.62B in August, 93% of the bucket.
Interest paid by borrowers rose 13.7% to $4.72M, driven by both higher average debt (+8.3%) and a higher effective borrow rate (5.57% against 5.14%). By asset group, the average stablecoin borrow rate rose from 5.25% to 6.98% and the SOL borrow rate from 6.98% to 8.14%.
Daily interest rose from about $160K to $229K over the last two days of the month, as USDC utilization in the SOL/BTC market reached 95.1% and the borrow rate rose to 15.3%.
7. Conclusions and Forward Look
Real-world assets and new products led September’s growth. Kamino Fixed Rates reached its first supply cap within five days, and new markets such as USDai and Plume Vaults attracted early deposits. Liquidations stayed small through a volatile month for SOL.
Risk stayed contained, with less than 2% of uncorrelated exposure within 10% of liquidation.
Outlook
For October, we will watch USDC utilization in the SOL/BTC market after its late-September rate spike, the ramp of the new RWA markets (USDai, Plume Vaults, AUTO), and Fixed Rates as more offers open.
Appendix: Asset Category Classification
| Category | Month-end Supply | Share | Supply MoM | Representative assets |
|---|---|---|---|---|
| Stablecoins | $1,035.7M | 39.2% | -5.5% | USDC, PYUSD, USDe, USDG, USDT, USDS, USX, CASH |
| LSTs | $601.5M | 22.8% | +8.3% | dSOL, dfdvSOL, JitoSOL, jupSOL, mSOL, hSOL, INF |
| RWAs | $537.8M | 20.4% | +19.1% | ONyc, PRIME, syrupUSDC, PST, AUTO, wYLDS, reUSD, tokenized stocks |
| SOL | $313.1M | 11.9% | +8.1% | SOL |
| BTC | $86.8M | 3.3% | +5.1% | cbBTC, xBTC, WBTC, zBTC, fBTC |
| Other | $66.2M | 2.5% | +23.0% | JLP, ETH, ZEC, HYPE, BONK, JUP, KMNO |
Classification notes: LSTs are Solana liquid-staking tokens representing staked SOL. This covers tokens ending in SOL other than SOL itself, plus INF. RWAs are tokenized real-world assets, including private-credit tokens (PRIME, syrupUSDC), insurance tokens (ONyc) and tokenized equities. From September, we classify AUTO, reUSD, sUSDai, wYLDS, oTFY, nOPAL, PT-ONyc tokens and PAX Gold as RWAs. Stablecoins are USD-pegged tokens. Exponent PT tokens take the category of their underlying.
This report represents independent risk analysis by Allez Labs for the Kamino Finance community.
Prepared by: Allez Labs Risk Team
Report Date: September 30, 2026
Next Report: October 2026 Monthly Report published in November 2026