Kamino V2: one month in

One month after its launch, @KaminoFinance V2 has achieved remarkable scale with $265 million in aggregate deposits across its v2 markets and $60 million locked in curated vaults, currently facilitating over $100 million in active borrows.

This explosive growth validates Kamino hybrid approach combining permissionless isolated markets with strategically allocating vault strategies, serving both institutional and retail participants seeking sophisticated credit infrastructure.

Kamino V2’s Isolated Markets

Kamino V2’s market layer fundamentally reimagines lending infrastructure by enabling permissionless creation of isolated markets with fully customizable parameterizations. Unlike traditional monolithic lending pools, each V2 market operates independently with tailored risk configurations, custom oracles, bespoke interest rate curves, and optionally independent risk management teams - including no management team at all with immutable parameterizations. Together, this ensures several items, including that that distress in one venue cannot cascade protocol-wide - a BTC long via USDT debt is not necessarily exposed to risks of a BONK short on another market. This design is suited to bespoke credit venues from high-LTV leverage markets to partner-specific hubs and niche asset experiments, attracting institutional and structured products such as Maple’s syrupUSDC credit and Exponent’s fixed-yield principal tokens.

Across 11 live V2 markets, total deposits have reached $265 million with $100 million borrowed in just a month and engaging 2,700 suppliers alongside 1,200 borrowers:

• Supply-to-Debt Ratio: 261%

• Average Position Sizes: $95K supplied; $83K borrowed

• Borrower-to-Supplier Ratio: 44%

These metrics highlight balanced growth and sustained credit demand, confirming the isolated market model’s fit for both yield seekers and sophisticated investors.

Marinade Market: Liquid Staking Leverage

The Marinade market leads V2 adoption with $100 million in mSOL collateral against $43 million in SOL borrowings from 720 suppliers and 345 borrowers, offering up to 90% LTV with a 95% liquidation threshold. This market enables leveraged liquid staking strategies by allowing users to supply mSOL as collateral and borrow SOL for re-staking loops, compounding Marinade’s native staking yields while amplifying exposure through leverage. Kamino’s specialized oracle infrastructure prevents erroneous liquidations from temporary market price mSOL depeg events by using the underlying SOL balances rather than secondary market price feeds.

Generous incentive programs have fueled this market’s expansion, with the Multiply strategy routinely surpassing 20% APY in SOL-LST loops, drawing both retail and large-scale liquidity providers. As we can see in the chart above, this new market has attracted many participants with the leading position size exceeding $1 million, average supply $139k and borrow $126k.

Maple Market: Institutional Credit Integration

The Maple market represents Kamino’s first major institutional credit integration, scaling to $75 million supplied and $30 million borrowed across 756 suppliers in two weeks. This market enables lending against Maple’s syrupUSDC token, which yields 6.5% APY from private credit pools primarily backed by BTC collateral, with real-time balance sheet monitoring available through Maple’s analytics platform.

Users supply syrupUSDC (80% LTV, 85% liquidation threshold) as collateral to borrow stables like USDC, USDG, and USDS, capturing the spread between syrupUSDC’s 6.5% fixed yield and variable borrow rates. Multiply loops in this market now routinely achieve over 10% APY on stablecoin positions, demonstrating strong appetite for leveraged private credit exposure within DeFi infrastructure.

Exponent Market: Fixed Yield Innovation

The Exponent Market secures $50 million in deposits with $18 million borrowed, serving 325 suppliers. It enables borrowing SOL against principal tokens (PT-fragSOL, PT-kySOL) that represent future claims on on the underlying SOL, these instruments currently offer nearly 19% annualized fixed yield.

Users deposit principal tokens as collateral (80% LTV, 95% liquidation threshold) and borrow SOL for additional leverage, capturing the premium between fixed PT yields and variable SOL borrowing costs that often exceed 10%. Kamino’s custom oracle discounts principal token values based on time to maturity and conservative discount rates, ensuring robust collateral valuations even as expiry approaches while protecting against liquidation from short-term volatility.

Notably, MEV Capital’s SOL vault supplies 77% of this market’s SOL liquidity, with the same entity (HiDF7) serving as both the top supplier to MEV Capital’s vault and the Exponent market’s largest participant. This concentration creates liquidity risks that require careful monitoring and contingency planning for market participants.

Sanctum Market: Infrastructure Token Lending

The Sanctum Market operates with $20 million supplied and $8 million borrowed across 340 suppliers supporting Sanctum’s INF token as collateral (85% LTV, 90% liquidation threshold) against SOL borrowing. INF tokens represent shares in Sanctum’s unified liquidity layer for LSTs, earning rewards from both staking and trading fees that boost organic yields approximately 2% above other LSTs.

The market’s 65% borrower ratio and smaller average position sizes indicate strong community-driven demand for leveraged INF exposure, reflecting confidence in Sanctum’s role as critical infrastructure for Solana’s liquid staking ecosystem.

Curated Vaults: Passive Yield Optimization

Kamino’s vault layer sits above the market infrastructure, featuring single-asset pools managed by professional curators that automatically deploy capital across multiple V2 markets under predefined mandates. These vaults abstract away the complexity of rate monitoring, rebalancing, and risk assessment, enabling depositors to access institutional-grade strategies with minimal effort.

In just a month, the vault ecosystem has reached $60 million in deposits and over 2,000 users, generating a 7 day average 7% APY with most strategies charing no management fees. The vaults have generated over $260,000 in total interest, demonstrating consistent performance across varying market conditions.

Weekly reward distributions through ongoing incentive campaigns featuring tokens like MNDE, BLZE, INF, and SyrupUSD further enhance vault returns, creating a compelling participation flywheel. The ecosystem serves a diverse user base, with approximately 50 users supplying $100,000 or more, 15 users exceeding $500,000, and 6 users depositing over $1 million, while maintaining a median position size of just $500 and average of $31,000.

Curators Strategies and Performance

Steakhouse Financial operates as the flagship institutional curator, leveraging extensive experience from Sky (formerly MakerDAO), Lido, and Morpho to manage USDC and USDG vaults. Their USDC Prime vault delivers a conservative 4.9% APY with strategic allocation across Main (52%) and JLP (48%) markets, attracting 400 users with an average position size of $45,500.

The Steakhouse USDG vault offers competitive returns at 8.3% APY, including SyrupUSD rewards, through diversified deployment across JLP (45%), Main (35%), and Maple (20%) markets. Both vaults demonstrate institutional-grade risk management while maintaining accessibility for smaller participants.

Allez Labs operates several automatic rebalancing vaults built to dynamically capture attractive yields with robust quantitative risk monitoring and qualitative assessments of markets, collaterals and opportunities. The Allez SOL vault attracted a record 967 users through diversified and high yield strategies. It maintains variable exposure across six markets: Marinade (30%), Sanctum (21%), SolBlaze (19%), Jito (27%), Exponent (3%) and Main (0%). With an average position size of just $9,200, this vault has seen successful retail adoption while delivering a competitive >10% APY. Allez’s proprietary rebalancing algorithm considers risk-adjusted yields across all Kamino markets, applying yield discounts to riskier exposures while maintaining diversified allocations..

The Allez USDC vault offers the highest USDC APY of 5.15% with similar diversification principles across six markets, including JLP (60%), Main (30%), Maple (9%), with minimal exposure to emerging markets. While maintaining diversification, it attracts larger average position sizes of $66,800, indicating institutional interest in diversified stablecoin strategies.

MEV Capital pursues concentrated exposure strategies, with their SOL vault delivering 8.2% APY. Their approach concentrates 98% of allocations in the Exponent market, capturing fixed-yield premiums from principal token strategies while accepting higher concentration risk. This strategy has attracted fewer but larger participants, with an average position size of $56,500 in SOL.

Squads Integration represents successful wallet-native DeFi adoption, with the newly launched Squads USDC Vault securing $430,000 in liquidity from Squad wallet users. Offering conservative allocation across JLP and Main markets, this vault serves as a “DeFi savings account” with an average position size of just $4,000, demonstrating how embedded finance can drive mainstream DeFi adoption.

Outlook

Kamino V2’s modular architecture effectively serves both passive and active DeFi lending strategies, from passive yield generation through professional vault management to active leverage strategies for enhanced returns. The protocol’s rapid adoption demonstrates strong product-market fit for both institutional and retail participants seeking sophisticated credit infrastructure on Solana. The integration of institutional-grade products like Maple's syrupUSDC and innovative primitives like Exponent's fixed-yield tokens positions Kamino as the leading venue for next-generation credit products on Solana.

With $4 billion in assets secured and zero incidents since launch, Kamino has earned the trust necessary to serve as Solana's core credit infrastructure. V2's successful launch reinforces this role and opens new paths for expansion through modular, scalable architecture designed for the next phase of DeFi adoption.

For a deeper dive into analytics check out the Kamino V2 Dashboard.