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February saw one of the sharpest market downturns of the past year, significantly impacting Kamino Lend. Deposits declined by 25% to $2.9B, while borrows fell 28% to $1.1B. This was driven by lower prices with a net positive flow of $3.17B deposits vs $3.13B withdrawals.
Market volatility throughout February triggered substantial liquidations on the protocol totaling $35.2M in collateral seized across 3,616 unique wallets. The Main market was most heavily impacted, accounting for 68% of all liquidation volume.
Despite the market turbulence, Kamino's liquidation ecosystem performed efficiently, with 80 active liquidators participating.
Interest rates fluctuated in response to volatility, with Dollar borrow rates peaking over 10% multiple times. Ultimately utilization decreased from 81% to 75% for Kamino Dollars and 92% to 74% for SOL, reflecting deleveraging across the platform.
Transaction volume decreased to $7.9B (-28% vs January), concentrated in periods of volatility. Despite these challenging conditions, users remain loyal with 130k unique wallets (down only 3% since last month). The Main market continues to dominate in deposits, followed by JLP and Jito.
🔎 Check out Kamino February 2025 Dashboard & February Monthly Snapshot for more details
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Kamino Lend experienced significant liquidity contraction in February, with broad-based decreases across key metrics driven by the severe market downturn. Total deposits fell to $2.9B (-25% month-on-month), while borrowing declined to $1.1B (-28% MoM), leading to a 22% TVL reduction to $1.8B.
The number of active positions decreased slightly to 154,891 (-4% compared to January), while the number of unique wallets actually increased to 130,441 (-3%), suggesting users remain loyal despite market conditions.
February was characterized by extreme price volatility, particularly in the latter half of the month when SOL price declined by approximately 35%, from around $200 to $130, with a modest recovery toward month-end. This volatility triggered significant deleveraging across all Kamino markets.
These conditions emphasized the solid liquidator ecosystem with a record number of participants which kept bad debt at zero throughout the downturn.
The Main market remains the largest, holding $1.7B in deposits (-23% MoM) and $694M in borrows. JLP follows with $722M in deposits (-31% MoM) and $231M in borrows, and Jito $368M in deposits (-25% MoM) and $183M in borrows.
While all markets experienced significant supply contraction, there was some notable SOL deposit activity, a whale position providing $120M of SOL collateral to borrow USDC.
The overall debt decrease was primarily driven by stablecoin borrowing reduction, while SOL and JitoSOL borrows actually increased by $42.5M, indicating a strategic shift from long to short positions as users adapted to the declining market.
Kamino generated $8.8M in interest revenue from borrowers in February, down 18% MoM, reflecting the reduction in leverage, prices falling and a shorter month.
February saw fluctuations in borrow rates, especially in the SOL market, where rates spiked multiple times throughout the month. The rapid stabilization highlighted responsive user behavior and market efficiency.
Demand for SOL-denominated leverage continued, with a slight 7% increase in SOL borrows to 3.5M. SOL supply grew significantly to 4.7M SOL (+30% MoM), driven by a single 883k SOL deposit. As a result of this large deposit, utilization fell from 90 to 70% pushing the borrow rate from 7.5% to 5%. The market is gradually absorbing this additional liquidity, creating opportunities for borrowers.