Crypto Gloss

Kamino Finance

Kamino Finance is the dominant DeFi protocol on Solana as of 2024-2025, having accumulated $1.5B+ in TVL across its three main products: Kamino Lend (borrowing and lending), Kamino Liquidity (automated concentrated liquidity vaults), and Multiply (leveraged yield strategies). Starting as a concentrated liquidity manager (automated LP management for Orca Whirlpools and Raydium CLMM), Kamino expanded into full-service DeFi. The KMNO token launched in April 2024 via a retroactive airdrop to Kamino users — one of the most anticipated Solana token launches of 2024. Kamino subsequently ran multiple points “seasons” to incentivize continued usage.

Origins: Concentrated Liquidity Management

Kamino Liquidity (original product):

When Orca introduced Whirlpools (Solana’s Uniswap v3 equivalent), liquidity providers faced a new challenge: managing their concentrated liquidity positions (setting and adjusting price ranges). If the price moves outside your range, you stop earning fees and may hold an unfavorable asset ratio.

Kamino automated this:

  1. Depositor adds assets to a Kamino vault
  2. Vault automatically provides concentrated liquidity to Orca or Raydium CLMM pools
  3. When price moves out of range → Kamino’s algorithm selects a new range and rebalances
  4. Depositor earns trading fees + any reward incentives

The yield source:

Concentrated liquidity in a narrow range earns dramatically more fees than wide-range LP (same capital, more trading volume routed through narrow range). Kamino’s vaults capture these fees minus rebalancing costs.

Kamino Lend

The larger product by TVL: a Solana lending protocol similar to Aave v3.

Key features:

  • Supply assets → earn yield from borrowers
  • Borrow against collateral (standard overcollateralized model)
  • Health factor monitoring (below 1.0 = liquidatable)
  • Support for LSTs (JitoSOL, mSOL, bSOL) as collateral
  • eMode-like “elevated LTV” for correlated assets (e.g., borrow SOL against JitoSOL at 90%+ LTV)

Key markets (Solana-native):

  • SOL collateral → USDC borrows
  • JitoSOL/bSOL → SOL borrows (leveraged staking loop)
  • wBTC, ETH deposits
  • Stablecoin markets (USDC, USDT)

Kamino’s LST loop (popular strategy):

  1. Deposit JitoSOL (~$1,000)
  2. Borrow SOL at 90% LTV (~$900 SOL)
  3. Swap borrowed SOL → JitoSOL
  4. Deposit new JitoSOL
  5. Repeat until desired leverage
  6. Net: ~5× leveraged JitoSOL position earning 5× staking yield
  7. Only liquidated if JitoSOL significantly depegs vs. SOL

Multiply (Leveraged Strategies)

Multiply automates the loop strategy above:

  • Choose a strategy (e.g., “2× JitoSOL/SOL loop”)
  • Deposit SOL or JitoSOL
  • One click executes the full looping strategy
  • Automated rebalancing if health factor drops

Available strategies:

  • SOL staking leverage (various SOL LSTs)
  • Long ETH/BTC against stablecoins (leveraged long crypto)
  • Short strategies (borrow, sell, buy back cheaper)

Risk: Leverage amplifies liquidation risk. A 3× loop position gets liquidated if the asset falls ~33%.

KMNO Token

Launch: April 2024 airdrop

Total supply: 10 billion KMNO

Airdrop:

  • Season 1 (May-November 2023): Points to eligible users; redeemed for KMNO
  • Kamino “credits” and points converted based on usage metrics
  • JitoSOL holders who used Kamino Lend typically received significant KMNO

Price history:

  • TGE: ~$0.08-0.12
  • ATH: ~$0.25 (April 2024 launch momentum)
  • 2024-2025: Volatility typical of recently launched governance token

Utility:

  • Governance: Vote on Kamino protocol parameters, new markets, fee changes
  • Fee sharing (future): Governance may activate protocol revenue sharing to stakers
  • Season 2, 3+ points programs incentivize continued usage

Season system:

Post-airdrop, Kamino started multiple “seasons” where users earn points toward future KMNO rewards — keeping engagement high and maintaining TVL.

Comparison to Solana DeFi Peers

Kamino MarginFi Drift Solend
Type Lending + Liquidity + Leverage Lending Perpetuals + Spot Lending (legacy)
TVL (2025) $1.5B+ ~$600M ~$300M ~$200M
Token KMNO MRGN DRIFT SLND
LST focus High (JitoSOL, bSOL) Moderate Moderate Limited
Leverage Yes (Multiply) Limited Yes (native perps) No

Kamino captured Solend’s market share as the dominant Solana lending platform by offering superior LST integration (JitoSOL loops) and the Multiply automation.

Kamino and the Solana DeFi Flywheel

Kamino is central to a virtuous cycle in Solana DeFi:

  1. New SOL → stake for JitoSOL (Jito)
  2. JitoSOL deposited on Kamino Lend
  3. Borrow SOL → swap for JitoSOL → re-deposit (loop)
  4. Loop amplifies: JitoSOL TVL, Jito MEV tips, Kamino TVL simultaneously

This makes Kamino and Jito deeply interdependent — Kamino’s lending markets provide the leverage vehicle; Jito’s LST provides the underlying yield. Together they form the core “SOL carry trade” that drives $500M-$1B+ in recursive DeFi loops on Solana.

How to Use Kamino

  1. Connect Phantom, Backpack, or Solflare wallet
  2. Visit app.kamino.finance

Lend:

  • Go to “Earn” → Select reserve → Deposit asset
  • Earn variable APY from borrowers

Borrow:

  • Deposit collateral → Select “Borrow” → Choose asset and amount
  • Monitor health factor

Leverage (Multiply):

  • Go to “Multiply” → Select strategy → Enter amount
  • Single click to set up full leveraged position

Get SOL at . Secure Phantom seed phrase with .

Social Media Sentiment

Kamino is the consensus “best DeFi protocol on Solana” in most 2024-2025 Twitter/CT discussions. The combination of lending, liquidity management, and leverage in one app resonates with power DeFi users. The JitoSOL looping strategy became one of Solana’s most popular yield plays during the 2024 bull run. KMNO token fundamentals are debated — governance token for a DeFi protocol with no fee sharing yet is standard, but until revenue distribution is activated, KMNO’s value is speculative. The points programs (Season 2, 3) attract mercenary users but also real engaged users who find the lending and leverage products genuinely useful. Kamino’s main risk: Solana DeFi correlation — if Solana network activity drops, Kamino’s usage and KMNO price decline together.

Last updated: 2026-04

Related Terms

Sources

Adams, H., Zinsmeister, N., Salem, M., Keefer, R., & Robinson, D. (2021). Uniswap v3 Core. Uniswap Labs.

Gudgeon, L., Werner, S., Perez, D., & Knottenbelt, W. (2020). DeFi Protocols for Loanable Funds: Interest Rates, Liquidity and Market Efficiency. arXiv.

Perez, D., Werner, S. M., Xu, J., & Knottenbelt, W. J. (2021). Liquidations: DeFi on a Knife-edge. Financial Cryptography.

Daian, P., et al. (2020). Flash Boys 2.0. IEEE S&P.

Leshner, R. & Hayes, G. (2019). Compound: The Money Market Protocol. Compound Finance Whitepaper.