Overview
Kamino Finance launched on Solana initially as an automated liquidity management platform, providing concentrated liquidity vaults for DEXs like Orca and Raydium. In early 2024, Kamino expanded into lending and borrowing with Kamino Lend (K-Lend), quickly becoming one of the largest lending protocols on Solana.
The platform's integrated approach — combining liquidity provision, lending, borrowing, and leverage in a single interface — has resonated with Solana users seeking capital-efficient DeFi. Kamino's lending markets support major Solana assets including SOL, USDC, JitoSOL, mSOL, and various SPL tokens, with competitive rates driven by algorithmic interest rate models.
As of early 2026, Kamino has grown to approximately $1.5-3B in TVL across its products, positioning it as one of the top three DeFi protocols on Solana. The rapid growth reflects both the protocol's execution quality and the broader resurgence of Solana DeFi activity.
Smart Contracts
Architecture
Kamino's lending module is built on Solana using a pool-based architecture optimized for Solana's account model. The protocol integrates lending with its existing liquidity vault infrastructure, allowing LP tokens from Kamino vaults to serve as collateral. This composability is a key differentiator, enabling users to earn DEX fees while borrowing against their positions.
Code Quality
The codebase is written in Rust for Solana's runtime. Kamino's programs have been audited by OtterSec, Offside Labs, and other Solana-focused security firms. Solana smart contract tooling is less mature than Ethereum's, and Kamino's rapid feature development pace creates inherent risk. The code is open source.
Upgradeability
Kamino's programs use Solana's standard upgradeable program model with multisig-controlled upgrade authority. The team retains upgrade capabilities for rapid iteration and bug fixes, which is practical for a young protocol but requires trust in the team.
Security
Audit History
Kamino has undergone multiple audits from OtterSec and Offside Labs for both its liquidity vaults and lending modules. The audit coverage is reasonable for a Solana protocol of its age but falls short of the extensive multi-firm audit programs of established Ethereum lending protocols. Bug bounty programs are active.
Oracle Design
Kamino uses Pyth Network and Switchboard oracle feeds for price data. Pyth's pull-based oracle model is well-suited to Solana's high-throughput environment. The protocol implements additional safety checks including confidence interval validation and staleness checks.
Liquidation Engine
Kamino employs a standard liquidation model where undercollateralized positions can be liquidated by third-party bots. The integration with Solana's fast block times enables rapid liquidation execution. The protocol has handled significant liquidation events during Solana market volatility without systemic issues.
Track Record
Kamino has not suffered a major exploit to date, but its operational history is relatively short (lending launched 2024). The protocol's rapid growth increases the stakes — more TVL means more attractive target. The Solana ecosystem broadly has experienced fewer lending-specific exploits than Ethereum.
Risk Management
Asset Listing
Kamino's asset listing process involves risk assessment by the team and community input. The protocol supports a curated set of assets rather than permissionless listing, prioritizing blue-chip Solana tokens and established LSTs. New asset additions undergo parameter analysis.
Risk Parameters
Each market has configurable LTV ratios, liquidation thresholds, supply/borrow caps, and reserve factors. Kamino implements elevation groups that allow correlated assets (e.g., SOL/JitoSOL) to have enhanced collateral efficiency, similar to Aave's eMode. Parameters are actively managed by the team.
Innovation Risk
Kamino's composability — using LP tokens as collateral — introduces layered risk. A failure in an underlying DEX or oracle could cascade through Kamino's lending markets. This complexity requires robust monitoring and conservative parameter-setting for LP collateral.
Adoption
TVL & Usage
Kamino has grown to approximately $1.5-3B in TVL, making it one of the largest protocols on Solana. Growth has been driven by the Solana DeFi renaissance, attractive yields, and the integrated vault+lending experience. Daily active users and borrowing volumes have grown substantially.
Ecosystem Position
Kamino is a central pillar of Solana DeFi, integrated with major protocols including Jito, Marinade, Jupiter, Raydium, and Orca. Its liquidity vaults serve as key infrastructure for concentrated liquidity management on Solana DEXs.
Points & Token
Kamino's points program and anticipated KMNO token have driven significant adoption. The KMNO token launched in 2024 with governance and utility functions. Points-driven growth raises questions about retention post-incentives, a common concern for rapidly scaling DeFi protocols.
Tokenomics
Token Overview
KMNO is the governance and utility token for Kamino Finance. Distribution includes community allocations, team/investors, treasury, and ecosystem incentives. The token was launched following an extended points campaign that built a large user base.
Revenue Model
Kamino generates revenue through lending spread (reserve factors on borrowing interest) and performance fees on its liquidity vaults. The diversified revenue model across lending and liquidity management is a structural advantage. Revenue has grown in line with TVL expansion.
Governance
KMNO token holders can participate in governance decisions. The governance structure is still maturing — as with most newer Solana protocols, the team retains significant operational control. Decentralization of governance is expected to progress over time.
Risk Factors
- Protocol Youth: Kamino's lending module launched in 2024, giving it limited battle-testing. Rapid growth amplifies the consequences of undiscovered vulnerabilities.
- Solana Network Risk: Solana's historical outages and performance issues directly affect Kamino's lending operations, potentially preventing liquidations during critical periods.
- Composability Risk: Using LP tokens as collateral introduces multi-layered dependency risk — DEX, oracle, and lending protocol risks compound.
- Incentive-Driven Growth: A significant portion of Kamino's TVL growth was driven by points and token incentives. Retention post-incentives is unproven.
- Team Centralization: The team maintains broad upgrade authority and operational control, typical for early-stage Solana protocols but a centralization risk.
- Solana Audit Ecosystem: Fewer specialized audit firms and less mature formal verification tools for Solana programs compared to Ethereum.
Conclusion
Kamino Finance has executed impressively, growing from a liquidity management tool to one of Solana's most important DeFi protocols. The integrated approach — combining automated LP vaults with lending — creates genuine synergies and a sticky user experience. Rapid TVL growth and strong Solana ecosystem integrations validate the product-market fit.
However, youth is the dominant risk factor. Kamino's lending module has less than two years of operation, and the fast-growth phase increases the attack surface and complexity. Solana-specific risks (network outages, less mature audit tooling) compound the concern. The protocol scores well for a young Solana project but must build a longer track record to earn higher confidence.
For Solana DeFi participants, Kamino is a top-tier option with innovative features. For risk-conscious investors, the limited history and Solana-specific risks warrant measured exposure.