Kamino Lend

Lending

Kamino Lend (K-Lend) is a decentralized platform on the Solana blockchain that autonomously matches lenders with borrowers of crypto assets. The lending platform is supported by a robust risk management framework to ensure stability and solvency.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Kamino Lend’s innovative features like Unified Liquidity Market and Elevation Mode offer streamlined and efficient DeFi experiences, enhancing borrowing leverage and capital efficiency.
What we like less
The platform's auto-deleveraging feature is currently not automated and triggered by the Risk Council to unwind unhealthy loan positions. The advanced features of Kamino Lend may also be complex for new DeFi users, potentially creating a steep learning curve.
What it means for you
You get access to a more efficient and flexible lending platform with potential for higher yields and tailored borrowing experiences.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $385.4M (Rank #35)
  • TVL Ranking by Lending: #9
  • Blockchain: Solana
  • Chain TVL
    • Solana: $385.43M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; OtterSec audited in September 2023
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2023; maturity over six months reduces technical risk as smart contracts are moderately battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Robust controls in place to prevent risky borrowing
  • Robust mechanisms in place to ensure healthy liquidations
Things to know about Kamino Lend

How Kamino Lend works

Kamino Lend (K-Lend) is a novel lending platform on Solana that allows users to borrow against their LP positions and leverage their investments. As part of Kamino 2.0, it serves as a comprehensive DeFi application, unifying various DeFi activities. Its key feature is a Unified Liquidity Market, replacing the multi-pool design with a single, efficient market. This approach enhances liquidity and utilization rates, while lowering yields for lenders. Elevation Mode, derived from Aave V3, enables users to borrow correlated or soft-pegged assets at higher LTV ratios, offering greater capital efficiency. Additionally, K-Lend incorporates Asset Tiers and Protected Collateral, providing a balanced approach to risk management and user flexibility. K-Lend also introduces innovative products like Multiply and Long/Short strategies. Multiply simplifies the process of leveraging yield-bearing assets. With a single click, users can amplify their investment in assets like stablecoin LPs and SOL LPs, leveraging their liquidity positions to potentially earn higher yields. The Long/Short strategies enable users to bet on market movements, either upward (long) or downward (short), with ease and simplicity. These strategies are designed to be user-friendly, particularly for those new to DeFi, allowing straightforward access to advanced financial maneuvers.

How Kamino Lend manages risk

Kamino Lend incorporates several risk management features to ensure platform stability and protect user assets. Key among these is the Auto-Deleverage system, which automatically reduces borrowed amounts in response to market risks, such as rapid price falls. This feature helps in maintaining safer Loan-to-Value (LTV) ratios, especially during market downturns. The platform also utilizes an Advanced Oracle Risk Engine that combines heuristic analysis and EWMA pricing, sourcing data from multiple providers. This approach enhances security by providing accurate and resilient price information, reducing the risk of oracle-targeted exploits. Furthermore, Kamino Lend introduces Asset Tiers that categorize assets based on their risk profiles. This tiered system allows for safer borrowing and lending across a range of tokens without fracturing liquidity. The platform also offers Protected Collateral options, where users can opt to prevent their collateral from being borrowed by others, eliminating borrower default risks for these assets. Kamino Lend’s comprehensive approach to risk management, including live risk metrics and simulations available on their Risk Dashboard, demonstrates a commitment to maintaining a secure and stable borrowing/lending environment on Solana.

How Kamino Lend makes money

As a user of Kamino Lend, you can make money in several ways. If you’re a lender, you earn interest on the assets you lend out. The platform’s efficient single-market design can potentially lead to higher yields. As a borrower, you can leverage assets more effectively, especially through the eMode feature, to make strategic investments or trades. Additionally, by using kTokens as collateral, you can potentially increase your investment exposure and earning potential from liquidity providing activities. The platform's innovative features are designed to maximize your capital efficiency and earnings in the DeFi space.