Kamino

How Kamino works

When you supply an asset to Kamino Borrow, it joins a shared pool for that asset and you receive kTokens, such as kUSDC or kSOL.

Your kToken balance stays fixed while its exchange rate to the underlying asset rises as borrowers pay interest. Supply yield is roughly the borrow rate times utilization: the docs' example is an 8% borrow rate at 70% utilization, which gives lenders about 5.6% before the protocol spread.

Every position has three LTV values. Max LTV caps new borrowing, Liquidation LTV sits above it, and Current LTV is your live ratio. The docs show SOL collateral at 75% Max LTV and 80% Liquidation LTV. Borrow Factors cut capacity for riskier debt: with $100 of SOL at 80% Max LTV you can borrow $80 of USDC, factor 1, but only $40 of BONK, factor 2. Markets are isolated, and Cross Mode lets one position hold several collateral and debt assets.

Liquidation is partial. Each round can close up to 20% of a position's debt, and the whole position can go at once only when LTV passes the market's insolvency threshold, typically 95%. The liquidator bonus is dynamic: in the docs' example reserve it starts at 2% at the threshold, rises to an 8% cap as the breach deepens and shrinks again near 100% LTV so the bonus never pushes the position into bad debt.