Kamino Finance lending gap over Jupiter Lend widens

The Kamino Finance lending gap over Jupiter Lend grew to about $190 million on Sunday, Oct. 11. Kamino Finance ($KMNO) held $1.32 billion in Kamino Lend deposits as of 10:50 a.m. ET, while Jupiter Lend held $1.13 billion, according to DefiLlama.

The quick take

Price: $KMNO trades at $0.0361, up 1.5% in 24 hours and down 10% in seven days, as of 11:41 a.m. ET (CoinGecko).
Trigger: Jupiter Lend deposits fell 8.2% since the start of Oct. 7, faster than Kamino Lend’s 5.3% slip.
Watch: whether Jupiter Lend’s outflows slow after its sharp drop on Oct. 9.

What happened

Both of the largest lending markets on Solana ($SOL) lost deposits this week, but at different speeds. At the start of Oct. 7 (UTC), DefiLlama put Kamino Lend at $1.40 billion and Jupiter Lend at $1.23 billion. That was a gap of $164 million.

Since then, Jupiter Lend has lost about $101 million, or 8.2%. Kamino Lend has lost about $75 million, or 5.3%. The difference added roughly $26 million to Kamino Finance’s lead.

The biggest swing came on Oct. 9. In DefiLlama’s daily readings, Jupiter Lend fell $38.6 million that day while Kamino Lend added $13.6 million. The gap jumped from $136 million to $188 million and has held near that level since.

The lead has moved in both directions over the past week. DefiLlama’s daily reading put it at $221 million at the start of Oct. 4. Jupiter Lend then added $64 million in a single day, and the gap shrank to $171 million by the start of Oct. 5. It then moved between $136 million and $178 million until Oct. 9, when the trend turned.

Why it moved

DefiLlama counts deposits in dollars, so any $SOL held on these platforms loses value when its price falls. $SOL traded at $110.18 at 11:41 a.m. ET, down 9.9% in seven days and 0.3% in 24 hours, per CoinGecko.

Jupiter’s own data shows part of its mix. Its Earn vaults held about $598 million at 11:44 a.m. ET, and $498 million of that was USDC, according to the Jupiter Lend API. Stablecoin deposits like these keep their dollar value when $SOL drops. The rest of DefiLlama’s Jupiter Lend total sits outside these Earn vaults.

Borrowing also cooled at Kamino Finance. Its borrowed total fell to $946 million from $1.01 billion at the start of Oct. 7, a 6.0% drop, per DefiLlama. Neither project has given a reason for the outflows, so the cause is not confirmed.

Who’s buying and selling

Token holders moved the other way from deposits. $KMNO is up 1.5% in a day, though still down 10% in a week. Jupiter Exchange ($JUP) trades at $0.379, up 2.6% in 24 hours and 14% in seven days, per CoinGecko.

The two lenders still carry weight on Solana. Total DeFi deposits on the chain stand at $6.19 billion, per DefiLlama. Kamino Lend and Jupiter Lend together hold close to 40% of that. For lenders and borrowers, the size of a market matters: deeper pools can usually absorb large loans and withdrawals with smaller swings in rates.

What to watch next

Jupiter Lend’s daily readings: a pause in outflows would stop the gap from widening.
The $SOL price, which changes the dollar value of $SOL collateral on both platforms.
Kamino Lend’s borrowed total: a further fall would show less demand for loans.

Bottom line: Kamino Finance has stretched its lead as Solana’s largest lender, while both markets shrink in dollar terms this week.