Inside Kamino V2
A Modular Hybrid Lending Architecture for Solana
Kamino V2 moves from a monolithic lending model to a fully modular stack built on two infrastructure layers: Markets and Vaults. This design directly addresses the inefficiencies of earlier monolithic lending platforms. By clearly separating lending markets from liquidity routing, Kamino achieves both permissionless flexibility and robust, scalable risk management – while also improving lender and borrower UX.
A Hybrid System: Building on Kamino V1
Kamino V1’s pooled markets — including the flagship main market remain live. These cross-collateral pools offer deep liquidity for majors such as USDC, SOL, and LSTs under a shared-risk framework.
V2 introduces a second layer: permissionless isolated markets. Here, specific asset pairs and isolated markets operate independently under customized risk parameters. By combining pooled and isolated approaches within one protocol, Kamino creates a hybrid system that adapts to the needs of different assets, users, and strategies.
Vaults serve as the connective tissue between the two layers — dynamically routing deposits across pooled and isolated venues according to each vault’s risk and yield objectives.
Kamino V2 is the first full deployment of this hybrid DeFi lending structure.
Market Layer: Permissionless, Modular Lending
Kamino V2’s Market Layer allows permissionless market creation. Any combination of collateral(s) and debt asset(s) can form a new isolated market, tailored with independent parameters including custom oracles, borrow rates, loan-to-value ratios, and debt/supply caps. Features like collateral rehypothecation (earning yield on posted collateral) and bespoke interest rate models can be enabled when appropriate.
Rather than hosting a single giant pool, Kamino’s Market Layer becomes a network of specialized venues: The Main Market for blue-chip assets, leverage markets for high LTV borrowing, partner-specific hubs, and opt-in “degen” markets for experimental or long tail assets.
By modularizing its lending architecture, Kamino can open up new collateral types and strategies while preserving systemic safety.
Vault Layer: Dynamic Yield Routing Across Markets
Single-asset vaults sit above the Market Layer and allocate liquidity across markets to where risk-adjusted returns are best. Each vault:
Accepts deposits of a single token
Distributes liquidity across multiple markets under set strategy defined by the vault curator
Rebalances automatically as yields, liquidity, risks and other attributes change
💡 Each vault functions like a programmable liquidity engine or a DeFi savings account: passive for the user, actively allocating liquidity under the hood.
This system enables a diverse product landscape: conservative vaults focused on blue-chip stability, aggressive vaults chasing yield, and thematic vaults tuned to structured strategies — all available through a simple deposit experience.
Kamino vaults bring the composability of isolated markets together with the ease of pooled lending — enabling both depositors and borrowers to benefit from market depth and risk segmentation without managing individual positions.
Curators: Allez Labs, Steakhouse Finance, and Re7 Join the Kamino Ecosystem
Alongside native Kamino vaults, V2 introduces Curator Vaults — strategies designed and managed by external experts, adding new dimensions to Kamino’s offering.
At launch, Kamino welcomes a first cohort of top-tier curators:
Allez Labs — Core risk contributor to Kamino, bringing real-time analytics and risk-conscious strategies focused on blue-chip and structured yield markets.
Steakhouse Finance — Veteran DeFi strategists with deep experience as the largest curator on Morpho, now expanding into Solana lending."
Re7 Capital — A quantitative investment firm specializing in digital asset markets, contributing high-velocity vault designs to Kamino’s new modular stack.
Each curator brings a distinct approach — some prioritizing stability, others targeting alpha — creating a dynamic, competitive ecosystem of curated vaults for users to explore.
We believe DeFi’s future lies in transparent, actively managed vaults — and we are proud to help lead that shift with Kamino V2.