Kamino's Q2 report shows Ethena Market hit $200M borrow cap on day one and $528.6M deposits by quarter-end, the fastest-scaling product launch in protocol history, with zero bad debt despite recent market stress.
DeFi & Yields ·
Kamino, Solana's largest lending protocol, reported $1.84M in total revenue during the second quarter, a decline of 10.6% from the prior three-month period, though the results highlighted accelerating adoption of a newly launched product. The Ethena Market, introduced in May, reached its $200M borrow cap on its first day and accumulated $528.6M in deposits by quarter-end, marking the fastest-scaling market launch in the protocol's history. The market represented 23% of total protocol deposits by the close of Q2 and held $239.4M in outstanding loans.
The quarter tested Kamino's risk infrastructure across two significant ecosystem disruptions. The protocol processed both the April Drift Protocol exploit and a June decline in SOL prices that triggered broad deleveraging without incurring any bad debt, preserving a zero-loss record since inception. Net interest margin remained stable at 11.3%, and end-of-quarter deposits reached $2.29B with an overall loan-to-deposit ratio of 41.0%.
The revenue decline reflected softer demand for crypto leverage during the June market stress, though deposits broadened across newly launched markets and asset classes. Kamino also expanded curator-managed markets during the quarter and advanced fixed-rate lending infrastructure toward production launch in Q3, though the durability of these products and their contribution to future revenue growth remain to be demonstrated.