Kamino.com — Borrowing on the Solana Network
SOL KaminoKamino is a place where you can deposit your SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → as collateral and borrow money. It's like a bank, except it runs on the internet, with no employees, and everything happens in seconds.
KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → is our primary platform for SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → collateral positions.
By the end of this lesson, you'll open a SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → collateral position yourself, understand the weighted margin formula, and know your liquidation price ahead of time — so you manage the risk instead of fearing it.
Why Kamino?
SOL KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → runs on the SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → network. That means:
| Feature | Kamino (Solana) | A regular bank |
|---|---|---|
| Speed | ~0.4 seconds | Days or weeks |
| Cost | ~$0.01 | Bank fees |
| Uptime | 24/7 — always | Business days only |
| User trust | $2B+ locked | — |
What is TVL?
TVL (Total Value Locked) — how much money people have entrusted to this platform. The more there is, the more trust it commands. KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → holds more than $2 billion — one of the largest SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → projects.
How Kamino works
KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → lets you do three things:
- Deposit assets (SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →) and earn interest
- Borrow against your collateral (mainly USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson →)
- Do both at once — your collateral keeps earning while you borrow
Kamino markets
KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → has several separate "markets" with different rules:
We use the Main Market — the safest market with the deepest liquidity.
How to get started — step by step
Connect to Kamino with your wallet
Go to app.kamino.finance. Connect with Jupiter Wallet. Make sure you have SOL in your wallet.
Choose 'Lend' and Main Market
On the Kamino page, choose 'Lending' → 'Main Market'. You'll see all the markets with their interest rates.
Deposit SOL as collateral
Click 'Supply' next to SOL. Enter the amount (e.g. 126 SOL). Confirm in your wallet.
Keep at least 0.05 SOL in your wallet for fees.
Turn on 'Collateral' mode
After depositing, turn on the collateral toggle. Without this step you won't be able to borrow.
Borrow USDC
Click 'Borrow' next to USDC. Enter the amount. Watch your LTV — don't start above 30%.
USDC interest on Kamino is ~5-7% per year — this is the real cost of the debt (there's no offset).
Monitor your position
Kamino shows your collateral value, debt, LTV, and liquidation price. Check these numbers every day.
Our strategy parameters
Compare both strategies by LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 71%+ triggers liquidation.Read the lesson → — you'll see why Strategy A suits beginners while Strategy B needs more experience:
Strategy A
Kamino ✅ AUDITASStrategy B
Kamino ✅ AUDITAS| Parameter | Value | Explanation |
|---|---|---|
| CollateralCollateralThe asset you deposit in order to borrow. In DeFi this is typically crypto (SOL, ETH).Read the lesson → | 126 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → ($11,088) | A larger position |
| Debt | 4,704 USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → | Regulated stablecoin (Circle) |
| Cost of debt | ~5-7% per year | Variable KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → rate |
| Starting LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 71%+ triggers liquidation.Read the lesson → | 42% | More aggressive |
| LiquidationLiquidationWhen LTV exceeds the threshold and the protocol automatically sells your collateral to cover the debt.Read the lesson → price | ~$61.30 | −30% from current price |
Why USDC, not USDY?
2026 update — USDC instead of USDY
We used to recommend USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson → as the borrowing currency on KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson →, because USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson → itself generates ~4.5% APYAPYAnnual Percentage Yield — the annual interest rate WITH compounding. Always higher than the equivalent APR.Read the lesson → (tokenized US Treasury bonds). That nearly covered the interest on a USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson → loan — a net cost close to 0%.
Why did we change it?
- USDYUSDYA yield-bearing stablecoin (Ondo Finance), backed by US Treasuries, paying roughly 4.5% APY. Replaced with USDC in the 2026 strategy update for liquidity reasons.Read the lesson → liquidity on SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → is lower than USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson →'s
- Smart contract risk is higher (a newer protocol)
- In a crisis, it's easier and faster to exit/repay with USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson →
The trade-off: you lose the ~4.5% offset, but you gain more safety, liquidity, and faster exits. The strategy's breakeven APRAPRAnnual Percentage Rate — the annual interest rate WITHOUT compounding. 10% APR = +10% per year.Read the lesson → increases accordingly.
| USDC debt (now) | USDY debt (before) | |
|---|---|---|
| Cost of debt | ~5-7% | ~5% |
| Asset yield | 0% | ~4.5% |
| True annual cost | ~$235-330 | ~$25 |
| Liquidity on SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → | Highest | Limited |
| Smart contract risk | Low (Circle) | Medium (OndoOndoOndo Finance — an RWA protocol (USDY, OUSG tokenized bonds).) |
Weighted margin — how Kamino calculates it
KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → uses a stricter formula than simple LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 71%+ triggers liquidation.Read the lesson →:
Effective collateral = SOL amount × SOL price × 0.90
Effective debt = Debt × 1.05
Weighted LTV = Effective debt / Effective collateral
| Parameter | Simple value | Weighted value |
|---|---|---|
| 126 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → × $88 | $11,088 | $11,088 × 0.90 = $9,979 |
| 4,704 USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → | $4,704 | $4,704 × 1.05 = $4,939 |
| LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 71%+ triggers liquidation.Read the lesson → | 42.4% | 49.5% (weighted) |
The difference: 7.1 percentage points. When you calculate with weighted LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 71%+ triggers liquidation.Read the lesson →, you know your real buffer in advance — so you're never caught by surprise.
Kamino risks — and how you manage each one
✅ AUDITAS KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → has been audited by independent experts (OtterSec, Kudelski).
Every risk here comes with a concrete lever — so this isn't a list of dangers, it's a management map:
| Risk | Level | How to manage it |
|---|---|---|
| Program bug | Low | AuditedAuditAn independent security review of smart-contract code. Not a guarantee, but it reduces risk.Read the lesson →, running since 2023 |
| Price feed error | Low | Uses Pyth and Switchboard |
| LiquidationLiquidationWhen LTV exceeds the threshold and the protocol automatically sells your collateral to cover the debt.Read the lesson → | Manageable | Keep LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 71%+ triggers liquidation.Read the lesson → ≤ 30% |
| SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → outage | Rare | Have a backup plan (AaveAaveEthereum lending protocol (v3). In our strategy: ETH collateral to a USDC loan.Read the lesson →) |
| USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → depeg | Very low | Circle is regulated, monthly audits |
How to prepare for a Solana outage
The SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → network sometimes experiences outages. Professionals handle this simply: they keep a backup position on AaveAaveEthereum lending protocol (v3). In our strategy: ETH collateral to a USDC loan.Read the lesson →, on a different network. That way, if SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → pauses for a moment, you can still act through AaveAaveEthereum lending protocol (v3). In our strategy: ETH collateral to a USDC loan.Read the lesson → — you have a second leg to stand on.
What to check every day
Health Factor (a safety metric) is the inverse of the LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 71%+ triggers liquidation.Read the lesson → ratio: the higher it is, the safer you are. If it equals 1 — liquidation.
In short
- Kamino — the primary SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → borrowing platform
- SOL = fast (
0.4s) and cheap ($0.01) - SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → collateral earns ~6% per year — even while pledged
- USDC debt — the highest liquidity, lower smart contract risk (2026 update)
- Weighted margin shows a higher LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 71%+ triggers liquidation.Read the lesson → — watch it
- Check LTV, liquidation price, and Health Factor every day
- Have a backup plan with Aave
Time to see a real lending platform live — safely, without depositing anything. This task takes about ~15 minutes.
In this task you deposit and borrow NOTHING — you're only looking at numbers. Check that the domain is really kamino.finance, and don't confirm any transactions in your wallet.
This is learning, not investing — use only small amounts you treat as tuition.
You just read real Kamino market rates and walked through the supply process in the simulator — now you can read a lending platform yourself, with no outside help.