Kamino Finance lending supply climbs to $2.64 billion

The quick take

Price: Kamino Finance ($KMNO) traded at $0.039, down 4.3% in 24 hours and 9.0% in a week (CoinGecko, as of 3:39 p.m. ET, Oct. 6).
Trigger: A new September risk report shows real-world asset collateral up 19% to $537.8 million, now a fifth of all supply.
Watch: Whether the new fixed-rate loans, at $21.5 million at month-end, keep growing in October.

What happened

Kamino Finance lending supply grew 4.4% in September to $2.64 billion, up from $2.53 billion a month earlier. Borrowing rose 4.0% to $1.04 billion. The figures come from a monthly risk report that the risk curator Allez Labs posted on the Kamino governance forum at 6:34 a.m. ET on Tuesday.

It was the second monthly gain in a row for Kamino’s lending markets on Solana ($SOL). Activity rose faster than balances. Transaction volume jumped 56% to $6.09 billion, and borrowers paid $4.72 million in interest, up 14%.

Supply peaked at $2.79 billion on Sept. 27 before easing into month-end. Money in and money out almost matched, at $2.45 billion of deposits against $2.47 billion of withdrawals. Loan repayments of $0.70 billion again beat new borrowing of $0.47 billion.

Why it moved

Real-world assets did most of the lifting. Tokenized RWA collateral rose by $86.1 million, or 19%, to $537.8 million. That raised its share of total supply to 20.4% from 17.9%.

New markets helped. Supply in the AUTO market grew more than ninefold to $64.9 million, and the Huma market more than quadrupled to $75.3 million on inflows of its PST token. Kamino also opened markets for USDai, a synthetic dollar, and for other tokenized credit products during the month.

Prices played a part too. The report says $SOL dipped below $100 in mid-September and then finished the month 15.7% higher. Liquid staking tokens rose 8.3% to $601.5 million, led by dfdvSOL, and plain $SOL supply grew 8.1% to $313.1 million.

Stablecoins moved the other way. They are still the biggest category at $1.04 billion, or 39.2% of supply, but fell 5.5%, mostly from USDe and USX outflows. Stablecoin debt held almost flat, so utilization rose to 70.0% from 66.5%.

Who’s buying and selling

The largest inflows were USDC at $36.4 million, PST at $34.3 million and AUTO at $34.1 million, the report shows. The biggest outflows were USDe at $35.1 million, dSOL at $30.9 million and PRIME at $28.5 million.

Borrowers also tried Kamino’s new fixed-rate loans, which went live on Sept. 21. The first offer let users borrow wYLDS against AUTO at 5.3% to 5.75% and reached its $20.0 million cap within five days. A second offer, USDC at a fixed 8% in the OnRe market, followed on Sept. 25.

Liquidations stayed small. The report counts 725 events, up 18% from August, but only $436,300 of collateral was seized, 6.8% less than the month before. The busiest day was Sept. 15, at $87,400, the same day $SOL hit its low.

DefiLlama tracks the protocol a different way. It lists borrowed funds apart from its main figure and puts Kamino Lend at $1.40 billion of value locked, with another $1.01 billion borrowed, as of 2:23 p.m. ET Tuesday. The two sources use different methods and times, so their totals do not match.

What to watch next

The stress test in the report shows little risk of bad debt for now. A 20% drop in volatile assets would put about $24.0 million of collateral at risk, under 1% of supply. Potential bad debt stays near zero down to a 30% drop.

Two large dSOL positions borrowing stablecoins, worth $108.4 million, explain most of the jump in risk between a 20% and a 30% fall. The next monthly report will show whether those positions shrink, and whether the RWA markets keep adding deposits.

The token has not followed the deposits this week. $KMNO fell 9.0% over seven days while Kamino Lend’s DefiLlama value rose 2.6% over the same period.

Bottom line: Kamino Finance grew its lending book in September mostly through real-world assets, while stablecoin deposits shrank and liquidations stayed small.