KM KMNO Kamino Loading... : Investor Sentiment and Bull/Bear Views

Kamino, previously the underdog relative to Jito, is now finding its niche and performing well by providing liquidity for tokenized stocks and DeFi, which should drive its token value higher.

Kamino has been basically untouched by the Aave/Kelp crisis on Solana, and Mike notes it is doing well with strong success in RWAs. This makes it a relative beneficiary and a protocol to monitor in Solana DeFi.

Current RWA demand on Kamino/Prime is driven by looping. Marius doubts users will permanently accept 2.5-3% low-risk DeFi yields, and Solana users especially want 11-12% yield if they understand the asset. In the Prime market, average looping multiple is about 5.6, so loopers take junior first-loss risk while senior lenders earn lower yield with protection; there is more senior demand. Unlike ETH/SOL, RWA looping requires accepting duration and using pricing/LTV/liquidation penalties to incentivize liquidation, but that duration risk is why the yield is attractive.

This cycle will be dominated by DeFi 2.0. Crypto is splitting into blue-chip, exchange-traded-like assets and penny-stock speculative assets; the blue-chip game will dwarf the penny-stock game. Boomer/RIA money via ETFs and traditional allocators will move into crypto and seek sensible DeFi compounders; names like Morpho, Sky, Maple, and Kamino are examples.

Kamino is a leading Solana borrow-lend platform that can use application-controlled execution to prioritize liquidators who buy and stake its token, improving liquidation efficiency without waiting on any single actor. That gives it a differentiated mechanism as Solana market microstructure evolves.