Kamino Finance and the Rise of Modular Lending on Solana
Liquidity, Lending and Leverage
Kamino Finance has rapidly emerged as a cornerstone of Solana’s DeFi ecosystem, offering a comprehensive suite that unifies lending, liquidity, and leverage. With the launch of Kamino Lend V2, the protocol has introduced a modular, permissionless lending infrastructure designed to scale alongside Solana’s growth.
https://app.kamino.finance/lending
Launched in May 2025, Kamino Lend V2 builds upon a robust V1 codebase, which underwent 14 audits and facilitated billions in borrowing volume.
The V2 upgrade introduces a modular lending infrastructure, enabling the creation of isolated markets with customizable risk parameters. This design supports diverse use cases, including permissioned KYC markets, fixed rate borrowing, custodial lending, and the use of staked SOL as collateral .
As of June 15, 2025, Kamino Lend boasts $3.6 billion in deposits and $1.5 billion in active loans, reflecting a 25% and 33% year to date increase, respectively. SOL remains the most supplied ($1 billion) and borrowed ($842 million) asset, showcasing strong user demand for looping LST/SOL positions via the “Multiply” structured product .
The Marinade market, launched in collaboration with Marinade Finance, is optimized for mSOL/SOL looping and has amassed over $90 million in deposits and almost $40 million in SOL borrows.
SOL utilization for this market has consistently remained above 80%, highlighting the capital efficiency benefits of Kamino’s modular architecture .
Kamino offers curated lending vaults where users can deposit SOL and stablecoins (USDC, USDG, USDT) to earn automated and optimized lending yields.
These vaults are managed by professional risk curators, including Steakhouse, Allez Labs, RE7 Labs, and MEV Capital, and are tailored to specific risk profiles: Conservative, Balanced, or Aggressive.
As of mid June 2025, these vaults hold approximately $50 million in deposits .
Kamino’s user interface is designed for transparency and ease of use, featuring a Loan Dashboard that provides real time analytics for every position. Users can simulate market movements, track interest rates, and analyze historical loan to value (LTV) data.
The platform’s risk management architecture includes a next generation liquidation engine and customizable interest rate curves, enhancing both security and capital efficiency .
Kamino Finance’s Lend V2 represents a significant advancement in decentralized lending on Solana, combining modular infrastructure with sophisticated risk management and user centric design. Its rapid growth and adoption underscore its pivotal role in the evolving DeFi landscape.