Alea Research: Kamino Q3 Net Inflows Into Tokenized Asset Market Reach $147 Million, Fixed-Rate Lending Volume Surpasses $73.7 Million

Author: Alea Research

Compiled by: TechFlow

TechFlow Preview: Amid outflows and pressure on crypto-native assets and synthetic USD lending, Kamino’s tokenized asset market recorded a net inflow of $147 million in Q3 2026, standing as the only business segment across the protocol to achieve net capital growth for the entire quarter.

More notably, its 30-day fixed-rate credit product launched on September 21 surged to $73.7 million within just over a month. Leveraging real-world asset yields and leveraged carry trade demand, it is reshaping the competitive landscape of on-chain institutional credit on Solana.

Kamino plans to become the core infrastructure layer for institutional finance and tokenized assets within the Solana ecosystem. Following a $530 million net outflow in Q2, its tokenized asset market emerged as the platform’s sole market type recording net inflows in Q3 2026, while crypto assets and the synthetic USD market combined saw outflows of $215 million during the same period.

Additionally, Kamino officially launched Fixed Rates credit on September 21, allowing borrowers to lock in fixed borrowing rates for up to 30 days.

Chart: Net capital flows by market type in Q3 2026; asset price appreciation contributed an additional $410 million in scale

Key Takeaways

• Tokenized asset markets recorded net inflows of $147 million in Q3, with $134 million flowing into 10 newly launched markets this quarter; meanwhile, the two pools with the highest carry spreads achieved significant growth in the USD-collateralized markets that remained open throughout the quarter.

• The tokenized asset market accounted for 30.5% of Kamino’s lending interest income in Q3, significantly higher than the 2.5% YoY; although this proportion dipped from Q2’s 36.9% (dragged down by the contraction of the Figure PRIME market), it matched Q2 levels again in October.

• Following the launch of fixed-rate lending on September 21 online, outstanding loans reached $21.5 million by September 30; climbing to $73.7 million by October 28, with the initial $12 million in maturing loans successfully rolled over at the original rate for the next 30-day period.

• Former Yieldstreet founder Michael Weisz assumed the role of CEO on September 15; KMNO rose 133% in Q3, while SOL gained 60% and JUP increased by 56% during the same period.

• Excluding the impact of the Ethena market, Kamino’s total loan volume grew by $9 million in October, driven by $44 million in new additions to the AUTO market; conversely, the Ethena market shrank by $166 million due to arbitrage cycle liquidations.

Chart: Total borrowing interest by market type (calculated as daily reserve pool balances multiplied by interest rates); Kamino retained $1.61 million out of $14.28 million in Q2, and $1.55 million out of $13.56 million in Q3

Kamino Retains Approximately 11% of Interest Income

A year ago, the crypto-native asset market contributed $29.4 million out of Kamino’s $30.2 million in quarterly total interest income; however, in Q3 2026, SOL’s average price retraced from $192 to $90, leading to a corresponding contraction in SOL collateral lending demand.

In contrast, repayment cash flows from tokenized asset borrowers originate from auto loans, home equity, reinsurance premiums, and trade financing, showing no correlation with SOL’s price movements.

Similar to Morpho on Ethereum, Kamino operates approximately 50 risk-isolated markets, where most pools support only a single collateral asset and are capitalized through vaults by curators such as Sentora, Steakhouse, and Galaxy.

Galaxy officially joined as a strategy curator on September 17; frontend applications including Binance Wallet, Kraken, and Solflare have all redirected user traffic to Kamino.

Kamino’s core moat lies in the breadth of its tokenized collateral. Each newly integrated asset class features independent market parameters, risk controls, and a one-click leverage cycle (Multiply) mechanism. As of October 8, Kamino held up to 95.6% of the total network share of AUTO collateral.

Chart: Lenders provide liquidity to isolated markets, with Kamino retaining approximately 11% of the protocol revenue from borrowing interest; this metric includes only interest and excludes liquidation fees

Kamino retained $1.55 million in protocol interest income in Q3, remaining virtually flat compared to Q2’s $1.61 million despite a 5% decline in total network interest.

This revenue is currently undistributed to KMNO token holders; under Kamino’s incentive season mechanism, staking KMNO is used solely to boost users’ KMNO token rewards rather than provide dividends, though Michael Weisz recently promised to soon unveil more plans regarding KMNO value capture.

As long as the yield on collateral assets exceeds borrowing costs—meaning the net carry remains positive—the Multiply cycle lending strategy maintains consistent profit potential.

Q3 Growth Drivers: Deposits Chase Higher Carry Spreads

Kamino launched 10 new tokenized markets in Q3, covering Figure’s AUTO auto loans, Obligate trade financing, and even tokenized gold and British pound assets. Within the USD-collateralized markets operational throughout the quarter, new deposits clearly concentrated in markets with the widest spreads.

Specifically, deposits in the OnRe market grew by $92.5 million, and the Huma-backed PST market increased by $62.5 million; meanwhile, Figure’s PRIME market continued its outflow trend since Q2, shrinking by $125.5 million in a single quarter.

In contrast, PRIME deposits on the Morpho protocol exceeded $470 million as of October 28.

Chart: Deposit comparison across five major USD-collateralized markets operating throughout Q3 2026; spread equals Q3 average collateral yield minus weighted stablecoin borrowing rate; Solstice USX returns are undisclosed

The three USD markets launched before September also corroborated the same trend: the AUTO market attracted $64.9 million in deposits by September 30, boasting a net carry spread of 223 basis points. Even after OnRe’s 10x points incentive on Kamino cycle pools officially ended on September 21, this market successfully retained its incremental capital for Q3.

Channel expansion has been equally robust: Binance Wallet users deposited over $100 million into Kamino vaults within nine days; Kamino successfully entered Galaxy’s GOFR lending program as a core venue; and its institutional commodity yield vault surpassed the $50 million milestone on September 29 officially.

Direct Competition with Jupiter Lend: Captures 52% of Top Two Lenders’ Q3 Loan Volume

In Q3, Kamino’s average loan share among Solana’s top two lending protocols stood at 52%, down from 58% in Q2. If including Save’s main market and Loopscale in the calculation, Kamino’s quarterly average share dropped to 50%, sliding to 45% by October 28.

Competitors are rapidly catching up with similar collateral assets: both Jupiter Lend and Loopscale now support identical targets, with the former launching reUSD in August and adding an sUSDai cycle pool in September, while the latter already supports ONyc collateral lending.

Additionally, Jupiter integrated fixed-rate USD* cycle pools into its peer-to-peer lending order book, Offerbook; in contrast, Kamino natively implements fixed-rate mechanisms directly within its existing lending markets.

Chart: Outstanding loan balances for four major Solana lending protocols from July 1 to October 28; Q3 averages were $970 million for Kamino and $892 million for Jupiter Lend, with Save’s metrics covering only the main market

Jupiter Lend launched its v2 version on August 10 and surpassed Kamino in total borrowing scale on October 5. Its Smart Vaults mechanism converts borrowing positions into DEX liquidity to earn trading fees, driving a 17% Q3 quarterly loan increase, while Kamino declined by 6% during the same period.

However, looking at net deposits (retained liquidity) after deducting loans, Kamino maintained an advantage in Q3, with average daily net deposits reaching $1.17 billion, surpassing Jupiter Lend’s $1.02 billion.

Future Highlights: Five of Six Planned Products Already Launched

The Fixed Rates mechanism allows borrowers to lock in borrowing costs for a fixed duration. Upon maturity, provided no lenders request redemptions, the loan automatically rolls over to the next 30-day period at the same rate.

In the week of October 22, the initial $12 million in fixed-rate loans rolled over at the original rate precisely through this mechanism, with the next maturity date around November 21. The fixed-rate product exceeded $21.5 million in just nine days post-launch and accounted for 8.5% of Kamino’s total loan volume as of October 28.

Chart: Fixed-rate loan trends across markets from Sept 1 to Oct 28; AUTO comprises four tiers starting at 5.3% totaling $62.7 million, OnRe ranges from 7.0% to 8.0%, and Ethena floating rates rose to 4.57%

The OnRe market’s 8% fixed USDC rate, which went live on September 25, remained rock solid by late September, contrasting sharply with the market’s floating USDC rates that fluctuated wildly between 7.6% and 9.6% during the same period.

In the Ethena market, lacking cost-cap protections for floating-rate borrowers, the average borrowing rate skyrocketed to 4.57% in October—nearly double that of July and approaching USDe’s own base reward yield of approximately 4.75% base reward yield, directly causing the market’s loan volume to plummet by $166 million in October.

Currently, all four fixed-rate AUTO quotes site-wide are funded by the same capital vault, which lends out Figure’s yield-generating USD asset wYLDS externally, starting from the 5.3% base rate, with subsequent tiers increasing incrementally.

Chart: Kamino tokenized asset market deposit changes from July 1 to Oct 28, 2026, alongside key product launches and personnel milestones

Ecosystem expansion proceeds rapidly. Binance Wallet deployed an additional $150,000 in incentives for the Kamino RWA USDC vault, with the campaign running until December 1.

In October, Kamino announced the addition of two executives and the establishment of a New York headquarters, while Michael Weisz also revealed plans to offer secured lending against private equity fund LP shares at interest rates between 5% and 6%.

Additionally, the proactive renewal feature “Keep Alive,” released on September 22, supports manual extensions of fixed-rate loans prior to maturity; OnRe market added USDG fixed rates on October 21, and the Backpack market targeting tokenized US equities officially launched on October 28.

Looking back at the roadmap Kamino established in December 2025, five of the six core products have been implemented: Fixed Rates, off-chain collateral, developer toolkit BuildKit, private credit operated by Institutional Yield, and the Borrow Orders intent system; only the RWA DEX remains pending.

Scenario Analysis: Breakeven Point for Average AUTO Cycle Lending is 4.3%

Chart: Net return matrix for AUTO cycle lending based on leverage multiple and asset yield (borrowing rate calculated at 10-month average of 6.0%, excluding fees and price volatility)

As of October 28, the average leverage multiple for AUTO cycle lending positions stood at 3.5x. Based on a 6.0% fixed borrowing cost, the strategy’s breakeven yield requirement is 4.3%.

Using October’s average standalone AUTO yield of 10.2%, the net return for a 3.5x leverage cycle reaches 20.8%, nearly double the profit from simply holding AUTO without leverage.

While fixed rates lock in liability-side borrowing costs, they do not cap underlying asset-side yields (October average 10.2%, averaging 11.5% as of Oct 28). Should AUTO’s underlying yield fall below 6.0%, the net return from leveraged cycles would actually underperform simple spot holding.

During Q3, deposits flowed into tokenized markets chasing high carry spreads; today, fixed-rate tools enable borrowers to preemptively lock in carry-side costs.

Based on a 6.0% average rate and Kamino’s 10% fee cut, scaling fixed-rate loan volumes to $150 million, $250 million, and $400 million would contribute approximately $900,000, $1.5 million, and $2.4 million in incremental annual revenue for Kamino (compared to its Q3 annualized protocol total revenue of $6.2 million).

Important Links

• Kamino Platform Future Roadmap (December 12, 2025)

• Kamino Fixed Rate Product Documentation

• Kamino Lend Monthly Risk Insights Report (September 2026)

• Kamino Official Fixed Rate Launch Announcement

Disclosures

This research report on Kamino is not a paid promotion nor commissioned work. Members of the Alea Research team (including researchers directly involved in the above analysis) may hold relevant token positions discussed herein.

This content is for research and educational purposes only and does not constitute any financial or investment advice. Readers are advised to conduct their own due diligence (DYOR) and allocate only within their acceptable loss tolerance. Alea Research is an investment research platform, not a registered investment or financial advisor.