The series of turmoil since the beginning of 2025 has caused the market to react with ups and downs. The top of the bull market has even become a consensus in the market. During the lunar New Year, the panic and greed index of cryptocurrencies remained in the range of 60-70, and the market's greed sentiment cooled down compared to the end of last year. But on the other side of the market, the total market capitalization of Stable Coins on the entire network has exceeded 217 billion US dollars, reaching a new historical high. This wave of rapid rise is naturally inseparable from the Trump factor. Since the release of the TRUMP Token on January 18th, Solana has surpassed the BNB chain and become the third largest blockchain network for Stable Coin supply.

With the continuous decline, market participants now have a stronger demand for risk resistance and stable returns. For DeFi users, Stable Coins not only serve as a hedge against market fluctuations but also gradually evolve into a 'steady wins the race' investment track. The rapid expansion of the Solana ecosystem in the field of Stable Coin applications provides participants with more diversified investment strategies and greater potential for returns. Next, we will take the leading lending protocol Kamino on Solana as an example to explore its new trends and high-yield opportunities in the Stable Coin investment field.

USDT financial management yields as high as 90%, Kamino's ace is more than just this

Kamino Finance was founded in 2022 as a DeFi protocol with a variety of functions such as lending, automated liquidity pool, compounding, leverage, and trading. Currently, on Solana, Kamino TVL ranks fourth after Jito, Jupiter, and Raydium. Recently, Kamino also launched a beta test of the Swap feature, setting new records for TVL and fee income.

And Kamino dominates multiple asset categories in the Solana ecosystem, including PYUSD and the recent cbBTC, with 88% of Solana on-chain cbBTC deposited in Kamino.

In August last year, Kamino launched the PYUSD incentive plan, successfully attracting $180 million of PYUSD inflow. With the rise in PYUSD borrowing demand, these inflows ultimately became a source of income for the protocol.

Related Readings: 'Annualized over 10%, why does PayPal Stable Coin have such high returns on Kamino Finance?'

Similarly, for Stable Coin, Kamino recently launched a USDT-related incentive program, such as launching USDT lending in JLP Market and Main Market, and also launched the USDT JLP Multiply section in the paired market, with a yield close to 90%. It is well known that Solana has always been the main venue for USDC, but now the largest lending protocol on Solana has started to incentivize USDT, which can be considered as a positive signal.

Leveraged Strategies Boost Returns 'Double'

If you have idle USDT, a low-risk way to participate is to provide USDT in Kamino's lending market. Currently, the APY for USDT in the Main Market and JLP Market is 6% and 5% respectively. However, you can also choose to invest USDT in Kamino's flagship product, the Multiply module, with a maximum APY of up to 90%.

Compared to conventional lending products, Multiply combines liquidity mining, flash lending, and lending protocols to provide a leveraged strategy for further amplifying returns. After pledging a portion of their assets, users can automatically borrow more assets from the protocol and reinvest them back into the liquidity pool, thereby obtaining returns several times higher than the principal through a cyclical funding model. This process relies on two core mechanisms of K-Lend: eMode and flash lending.

For example, users choose the leverage multiplier they want to use and deposit assets, such as SOL or JitoSOL. At the protocol level, Kamino automatically converts the deposited SOL into JitoSOL. To further amplify the efficiency of users' funds, Kamino also borrows SOL through flash loans. Kamino converts the borrowed SOL into more JitoSOL, and then deposits these JitoSOL into Kamino's lending platform, K-Lend. Afterwards, Kamino borrows SOL from K-Lend to repay the previous flash loan.

However, for users, they only need to deposit assets with one click and select the leverage multiple. The ultimate result is that the user holds a leveraged position, and the profit exposure is amplified to the target multiple. The profit and cost of this position are as follows:

Staking Yield: As a liquidity staking token, JitoSOL continuously generates staking rewards in SOL, with a staking APY equal to JitoSOL's staking APY.

Borrowing cost: Users need to pay the borrowing APY of SOL, which is the cost of using leveraged funds.

Net income: As long as the staking APY of JitoSOL is higher than the borrowing APY of SOL, users can earn positive income. For example, if the staking APY of JitoSOL is 7%, and the borrowing APY of SOL is 6%, then the net income for users is 1%.

Currently, Kamino's Multiply product offers more than ten options, but the top-ranking ones in terms of annualized return are all related to Stable Coin, with USDT's maximum annualized return exceeding 90%.

Sustainability Behind Deep Ecology + Automation and High Returns

The yield and sustainability of DeFi projects have always been the core issues of concern for investors, but it is unsustainable to rely solely on short-term high yields to attract users. Especially in the current market environment, many platforms that rely mainly on subsidies or platform coins incentives can provide relatively high yields in the short term, but these yields are often unstable and difficult to maintain in the long term.

In contrast, Kamino demonstrates greater sustainability through its unique ecological depth and automated management mechanisms.

Kamino not only relies on short-term profit incentives, but also provides a more stable and long-term source of income through deep involvement in the Solana ecosystem. This model can not only attract more long-term investors, but also bring more stable liquidity to the platform. By deeply integrating with mainstream protocols in the Solana ecosystem, such as Jupiter and Jito, it has achieved more efficient asset management and income optimization.

For example, taking the JTO-JITOSOL Treasury as an example, starting from January 6th, 75,000 JTO tokens will be distributed to deposit users as incentives through Kamino, and these rewards will be allocated proportionally to the TVL in the same way as other Kamino farms. For example, if you occupy 10% of the Treasury in the next 30 days, you can receive a 10% JTO reward.

In addition, users can also receive MET points from the Solana ecosystem DEX Meteora and Warchest points from the Kyros staking protocol when depositing in the Vault, in order to participate in the airdrops of projects that have not yet undergone TGE in the Solana ecosystem.

Automation is another ace up Kamino's sleeve, in addition to the Multiply introduced earlier, there is also an automated liquidity vault. This is Kamino's first product launched in August 2022, which injects users' funds into the underlying DEX liquidity pool and optimizes returns through automated tools. Specifically, when users deposit funds into the Kamino vault, these funds will be allocated to a DEX liquidity pool composed of two types of tokens. Whenever a trader uses this liquidity pool to exchange tokens, a certain fee will be generated. As a depositor of Kamino, users can share in the profits from these trading fees.

Automation technology is reflected in Kamino's automatic adjustment of user positions, ensuring that funds are always in the optimal trading range, maximizing profits and reducing the risk of impermanent loss. Secondly, Kamino automatically reinvests transaction fees and additional incentives into user positions, eliminating the need for manual user operations and further improving the efficiency of fund utilization. Kamino also supports automatic conversion of unilateral deposits and withdrawals, simplifying the user's operation process.

To enhance user flexibility, Kamino also provides an interchangeable kToken as a deposit certificate. After depositing funds, users can freely use kToken for other operations within the DeFi ecosystem, further unlocking the value of the funds.

"Road to $10B": Kamino's future imagination

With the expansion of the Solana ecosystem, the number of projects, types of assets, and user base continue to rise, and the demand for the lending market is also increasing in sync. In July 2024, Kamino released a phased rise strategy plan 'Kamino: Road to $10B', which mentioned the development of 4 core pillars, including products, community, native Token, and revenue. The latter three are temporarily put aside. To compete in the fierce encryption market, having core products is the most powerful moat.

Currently, the credit market in the Solana ecosystem still relies mainly on large, centralized lending pool models, but there is still huge room for development, which can bring many new opportunities. As for Kamino, its most anticipated V2 update will introduce modular lending, further evolving Kamino Lend to make it a more powerful and open lending infrastructure. The launch of V2 will give birth to a series of innovative products and enable the protocol to cover entirely new application scenarios, such as:

RWA lending

P2P lending

Order Book Based Lending

More advanced risk management engine

In addition to modular lending, Kamino V2 will also launch spot leverage, improve liquidation engine and risk management, and provide functions such as automatic cancellation of collateral, target leverage, and stop loss/take profit.

V2 will further deepen its connection with Solana's ecosystem projects. Currently, Kamino is in deep discussions with multiple DeFi protocols, all of which will innovate and develop based on V2, exploring new application scenarios. Partners include existing Solana ecosystem projects as well as non-native projects migrating to Solana, all of which will launch core products on Kamino Lend V2.

According to the official documentation, Kamino is also incubating multiple V2 ecosystem projects internally and will invest significant resources in the following areas:

DeFi protocol integration (promoting more DeFi protocols to interconnect with V2)

Ecological Integration Funding Program (Integration Grants, supporting developers to build products based on V2)

Hackathon Sponsorships (Attract more developers to join the V2 ecosystem)

Currently, the DeFi landscape in the Solana ecosystem has a certain stability, and the stablecoin market capitalization has also risen by 112% this year. As a leader in lending, Kamino still has a high development ceiling in the future. Whether it can continue to expand steadily with its unique technology and ecological advantages is also worth close attention from the market. After all, in the ever-changing encryption industry, seizing the next rise point may have the opportunity to become a new "explosive engine".

Kamino Official Website | Official Announcement