Kamino Lending: A Comprehensive Analysis

By SocioCrypto | Blockchain Analytics | 29 Nov 2023


Introduction

Solana DeFi is on the rise, with users flocking to DeFi protocols and liquidity pouring into pools and vaults. Some protocols, like JitoSOL, MarginFi, and Jupiter, are frequently discussed, drawing attention due to rumors about airdrops or the introduction of their LSTs. However, there are others heard less often, but the data shows that this latter group is undoubtedly underrated.

In this blog post, I will highlight some metrics about the Kamino Protocol that demonstrate its potential.

What is Kamino Lending?

Kamino stands as a pioneering DeFi platform with a primary focus on lending. It distinguishes itself by seamlessly amalgamating lending, liquidity, and leverage, creating a cohesive and secure suite of DeFi products.

On the Kamino app, users can borrow and lend their assets, provide liquidity to pools, earn yield, engage in leveraged liquidity provision for concentrated liquidity DEXs, and create their automated liquidity strategies.

The Kamino app features a currently disabled 'Points?' tab, indicating a point-counting mechanism for the near future, to be followed by the airdrop of the Kamino token.

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Kamino Then and Now

TVL

As the data shows, the TVL for the Kamino Protocol is skyrocketing, recently surpassing $25M. The growing trend began in October with the rise of the $SOL price. However, normalizing the TVL by $SOL reveals that the effect of SOL price growth was only involved initially; in the past week, the growth is independent of SOL price. JitoSol, JLP, and SOL are the three main tokens constituting the current TVL.

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Users

To date, the Kamino protocol has onboarded over 11K unique addresses. The data reveals a significant rise in both daily active users (DAU) and new users since mid-November 2013. In the last 7 days, the average daily activity encompasses 1,200 active users on Kamino, with 578 users newly onboarded each day.

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Kamino Market Share

The Kamino Protocol is the third most significant lending protocol on Solana, trailing behind MarginFi and Solend based on the current TVL. Regarding user activity and adoption, Kamino is positioned among the top three DeFi protocols on Solana, following Drift and MarginFi.

It's also worth noting that among Kamino's user base, less than 2% are dedicated users, indicating that Kamino is well-integrated within the ecosystem. Users with LSTs use Kamino's pools for extra passive income.

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Conclusion

In this blog post, using Kamino analytics dashboard, I provided an overview of the Kamino Protocol. The data shows that Kamino is on the rise, with TVL skyrocketing and the user base substantially growing. It is highly likely that Kamino will introduce its own token, similar to BLZ and JTO, and airdrop a portion of it for early users. All these factors indicate that this protocol, like other DeFi protocols on Solana, is worth attention.

Endnotes and Disclaimer

  • Explore the detailed analysis presented above and gain additional insights into the Kamino Protocol using our analytic dashboard.

  • Risk Awareness: Investment in cryptocurrency, as well as providing liquidity and engaging in trading on web 3 platforms, is not without risks. Please be aware that these activities carry inherent risks.

  • Not Financial Advice: I am not a financial advisor. Instead, I am a data scientist who scrutinizes on-chain data to offer insights into blockchain issues. Exercise caution when considering the provided data, and supplement it with additional insights and analyses.

  • Honest Analysis: This analysis is conducted with integrity. I have no direct or indirect affiliation with the Kamino protocol.

  • Liquidity Consideration: While I am considering providing liquidity to Kamino, at the time of this analysis I have no liquidity on Kamino.

  • Documentation Reference: For more information on the Kamino Protocol, you can refer to their documentation.

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