As market volatility eased after a bumby Q1, TVL jumped 25.5% to $2B, fueled by a renewed demand to supply (+26.1% to $3.37B supplied) and borrow (+27.1% to $1.37B) across Kamino markets.
SOL supply expanded to 5.99M (+1.22M), while Kamino Dollar utilization hit ~75% despite a slight dip in supply. Borrowers paid $6.95M in interest, and liquidations held steady month over month at $17.2M.
User activity remained strong with 152.6K active positions and nearly 129K wallets, reinforcing Kamino’s role as Solana’s core credit layer.
Kamino also shipped key upgrades in April:
- Meta-Swap, an RFQ aggregator powered by Pyth Express Relay
- Confluence, a creator economy layer
- Chainlink VDS integration to enhance risk infrastructure
Kamino heads into May firmly positioned as Solana’s leading credit protocol.
1. Overview of Market Performance and Developments
After a rocky start to April, Kamino ended the month with strong momentum. Price recoveries and renewed borrower demand helped reverse March’s slowdown, while deposit flows into core markets remained strong. Supply, debt, and TVL all posted double-digit gains, with supply rising to $3.37B (+26.1%), debt climbing to $1.37B (+27.1%), and TVL increasing to $2.00B (+25.5%).
Total transaction volume reached $5.25B, a modest +4.6% increase month-over-month, indicating stable protocol usage. Volatility in rates was low. Kamino Stable Dollar borrow and supply rates increased slightly to 9% (+0.25%) and 4.5% (+0.42%) respectively. So did SOL borrow and supply rates to 5.4% (+1%) and 7.3% (+0.88%), as utilization remained elevated in SOL markets.
Kamino maintained a fast shipping cadence, delivering major product updates:
- Meta-Swap Launch: Introduced a novel RFQ-powered swap aggregator using Pyth Express Relay. Surpassed $10M volume in its first 24 hours.
- Confluence Announcement: Introduced Kamino’s creator economy layer to empower ecosystem contributors through aligned incentives.
- Chainlink Integration: Integrated Chainlink’s Verifiable Data Standard (VDS) to improve data robustness and protocol security.
These initiatives demonstrate Kamino’s continued focus on protocol extensibility and risk infrastructure, building toward a more composable DeFi ecosystem on Solana.
2. Supply, Borrowing & Revenue Trends
Kamino Lend rebounded strongly in April, with supply and borrowing activity growing across major markets. Total supply rose to $3.37B (+26.1% MoM), while ending debt expanded to $1.37B (+27.1%), reflecting renewed appetite for leverage and increased user confidence.
Kamino’s flagship Main Market accounted for much of the growth, with supply climbing to $2.40B (+43.7%) and debt to $1.03B (+45.6%). Jito markets also expanded meaningfully, with supply up to $335M (+13.8%) and debt reaching $171M (+15.5%). Smaller markets like Altcoin and Ethena remained relatively stable.
Meanwhile, JLP markets contracted: debt declined to $191M (–12.0% MoM) from $217M in March, while supply also fell to $619M (–4.6% MoM).JLP saw ~$30M in net outflows, reflecting cautious behavior in a high leverage environment.
On the asset side, SOL borrowing surged by $170M while SOL deposits increased by $122M — including a $130M single-day deposit on April 6, which the protocol absorbed seamlessly via dynamic rebalancing. Liquid Staking Tokens (LSTs also saw significant $224M supply growth, with over $100M of JupSOL supplied (followed by JitoSOL, mSOL, hSOL, vSOL), as users take advantage of Kamino’s Multiply increased leverage from end of March. New stablecoin EURC also saw notable inflows boosted by Circle’s incentives.
Kamino generated $6.95M in borrow interest (+0.8% MoM) and paid $6.27M to suppliers — maintaining strong protocol revenue despite competitive dynamics and steady rates.
3. Kamino Stable Dollar & SOL
April marked a strong month for Kamino’s core markets, with sustained demand for leverage and continued growth in SOL-denominated activity. Both stablecoin and SOL markets recorded healthy utilization, supporting stable protocol revenue.
SOL Markets
SOL liquidity saw robust expansion across all core metrics:
- SOL supply rose to 5.99M (+1.22M MoM), driven by a 1.2M deposit on April 6 - absorbed by the dynamic rebalancing mechanisms within a week
- SOL debt increased to 5.20M (+1.39M MoM)
- Utilization climbed to 86.83% (+6.95%)
- Borrow rate ticked up to 7.31%, while the supply rate rose to 5.39%
Growth was driven by strong demand for staking exposure. JupSOL led with $113M in new deposits, followed by jitoSOL and cbSOL — anchoring Kamino’s dominant position in the LST ecosystem.
Kamino Stable Dollar Markets
Despite a slight dip in Kamino Dollar supply (–$17.15M to $712.1M), utilization rose to 74.95%, and rates rose on both sides of the book, with average borrow rates reaching 9% and supply rates climbing to 4.45% - signaling stickier borrow demand relative to supply-side inflows.
Inflows were concentrated in USDG, USDT, and USDS — all of which saw higher supply, with USDG and USDT also recording increased borrowing. Declines in USDC and PYUSD reflected tapering incentive programs.
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4. Transaction Volume and User Behavior
Kamino processed $5.25B in total transaction volume during April, a modest +4.6% increase month-over-month, user engagement remains stable following the volatility of Q1:
- Deposits $2.17B +8.5% MoM,
- Withdrawals at $1.83B –6.8% MoM,
- Borrows at $698M +13.1% MoM,
- Repays at $513M –6.9% MoM,
- and Liquidation volumes remained consistent at $17.2M -11.3% MoM
The Main Market handled over 70% of activity ($3.68B), followed by JLP ($850M) and Jito ($707M). Altcoin and Ethena remained niche but stable.
User behavior reflected active risk management and responsiveness to shifting rates and incentives. Borrowers adjusted positions to reflect prevailing rates and incentives, while suppliers continued to provide liquidity to key markets — especially SOL and Kamino Dollar. Liquidation volume remained steady despite increased leverage and deposit growth.
5. Market Movements & Liquidations
After a volatile Q1, early-April turbulence triggered elevated liquidation activity which stabilised for the rest of the month. Max drawdowns across listed assets remained sharp in some segments — particularly long-tail tokens and xSOL — prompting risk-off behavior in the first half of the month.
Total collateral seized in April amounted to $17.2M (—11.3% MoM), with $16.6M in corresponding repaid debt — broadly in line with March. Activity was concentrated in the JLP and Main markets, which together represented over 99% of total liquidations. JLP alone accounted for $10.47M in seized collateral (up MoM), reflecting the high-leverage of the JLP market. SOL-correlated collateral (SOL + JitoSOL) made up over $6.7M of all seized positions.
Kamino’s liquidator ecosystem continued to expand, with 117 active liquidators (+3.5% MoM) processing 15,520 liquidations across 6,745 unique wallets. The 3 top individual liquidators handled $2M in collateral value, while more than 19 addresses liquidated over $100K each, demonstrating a healthy distribution of responsibility across the ecosystem. This increase in participation reinforces the robustness of Kamino’s backstop systems and liquidation coverage. Liquidation bonuses remained minimal — signaling efficient, competitive processing of risky positions without excessive slippage.
6. Stress Testing
Following a quarter of price consolidation, risk concentration across core markets stayed elevated. However, user portfolios remained broadly risk-aware through April. A large share of obligations across JLP, Main, and Altcoin markets remained within the 20–30% distance to liquidation range — suggesting persistent thin collateral buffers and moderate leverage usage.
Notably, over 60% of JLP accounts sits within 30% of their liquidation threshold, reaffirming JLP’s role as Kamino’s most risk-tolerant isolated market. By contrast, Altcoin and Main market positions displayed wider collateral margins.
In the event of a market shock, dominant collaterals SOL, JitoSOL & JupSOL, and JLP would be the first to face 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 a 30% market drop occur, $359M in collateral could be liquidated (+3% MoM), potentially resulting in $3.3M in bad debt (-75% MoM)
- In a 60% crash scenario, liquidation exposure rises to $864M (+2.3% MoM), with potential bad debt reaching $143M (-37% MoM)
Modeled bad debt fell sharply despite higher nominal exposure — a result of improved borrower behavior, deeper liquidity, and more effective liquidations.
7. Conclusions & Risk Considerations
April was a month of recovery for Kamino — with activity, confidence, and protocol performance all rebounding from Q1 lows. User behavior remained cautious but active, with lower leverage, tighter risk buffers, and selective participation in high-yield markets. The continued increase in liquidator participation (now 117 active addresses) further strengthened the protocol’s liquidation infrastructure.
At the same time, thin margins across user portfolios and sustained exposure near liquidation thresholds underscores the need for ongoing vigilance as markets re-lever. As the market re-levers, Kamino’s ability to dynamically adjust incentives and monitor risk remains critical.
Kamino enters May well-positioned for continued growth and innovation: scaling its architecture, diversifying its collateral base, and reinforcing its position as Solana’s leading credit infrastructure.
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