Current Platform Landscape (2025)
Solana’s lending market is dominated by five major protocols with distinct approaches:
By TVL ranking:
- Kamino Lend: $3.0B TVL – Largest money market with robust risk framework using “Borrow Factors,” supports LSTs and LP kTokens, plus 1-click “Multiply” leverage loops
- Jupiter Lend: $0.69B TVL – Fast-growing platform launched August 2025, hit ~$1B peak TVL with simple “Earn” vaults and clean borrowing UI
- Save (formerly Solend): $0.26B TVL – Original Solana lending protocol, battle-tested with clear dashboards
- marginfi: $0.17B TVL – Pooled markets plus “Arena” isolated banks, offers staked-collateral borrowing
- Loopscale: $0.06B TVL – Smaller specialized platform
Drift offers integrated borrow/lend that powers cross-margin perpetuals and spot trading, using multi-kink interest curves for tight trading integration.
Platform Deep Dive: Risk Models and Features
Kamino Lend – Market Leader
Risk approach: Borrow Factors + asset risk tiers that set Collateral Max LTV per asset Unique features:
- LST and LP kToken collateral support (JitoSOL vaults)
- 1-click “Multiply” leverage loops (borrow SOL → swap to JitoSOL → supply → repeat)
- Comprehensive risk framework with health factor monitoring
Best for: Advanced strategies, highest liquidity, LST lending
Jupiter Lend – Fast Growth
Risk approach: Isolated vault design with rapid TVL expansion since public beta Current rates: USDC ~7.9% earn, SOL ~3.7% supply APY Unique features: Clean “Earn” interface, strong Jupiter ecosystem integration
Best for: Simple passive yield, new users wanting higher USDC rates
marginfi – Pooled + Isolated
Risk approach: Main pooled market plus “Arena” permissionless isolated banks Unique features:
- Staked-collateral: borrow against staked SOL while keeping staking rewards
- E-mode tiers for correlated assets
- Per-asset isolation prevents tail risk contamination
Best for: Capital efficiency with staked assets, risk isolation
Drift – Trading Integration
Risk approach: Multi-kink interest curves integrated with perp trading Unique features: Borrow/lend powers cross-margin perps and spot margin Use case: Deposit SOL, trade perps – system borrows USDC behind the scenes
Best for: Active traders needing integrated borrow/lend with derivatives
Current Rates and Real Examples
What You Earn Lending $1,000 USDC:
- Jupiter Lend at 7.9%: ~$6.6 per month (1,000 × 0.079 ÷ 12)
- Kamino at 3.8%: ~$3.2 per month (1,000 × 0.038 ÷ 12)
What It Costs to Borrow $5,000 USDC:
Using Kamino’s July 2025 stablecoin average borrow rate of 11.27%:
- 30-day cost: ~$46 (5,000 × 0.1127 × 30 ÷ 365)
- Monthly carrying cost: Similar to credit card APR structure
Borrowing Against SOL – Safety Buffer Example:
Kamino allows SOL max LTV up to ~80% in documentation examples:
- Deposit: $10,000 of SOL
- Borrow: $6,000 USDC (60% LTV for safety buffer)
- If SOL drops 20%: Collateral becomes $8,000, LTV rises to 75% (6,000 ÷ 8,000), still under 80% liquidation threshold
This 20% buffer illustrates proper risk management for volatile collateral.
How Solana Interest Rates Work
Solana lending uses utilization-based variable rates. Higher borrowing demand increases rates for borrowers and yields for lenders. Most platforms use kinked curves that accelerate rate increases above 80-90% utilization.
Kamino stablecoin markets (July 2025 monthly average):
- Borrow APR: ~11.27%
- Supply APY: ~8.73%
- Utilization: ~87.5%
This high utilization drives the significant rate spread and shows active borrowing demand.
Rate risk: Variable APRs move quickly as utilization changes. Drift’s multi-kink curves illustrate how rates can spike at high utilization levels to prevent liquidity exhaustion.
Step-by-Step: Your First Position
1. Choose Your Platform Strategy
Want simple passive yield? Jupiter Lend “Earn” vaults (7.9% USDC) or Kamino USDC (3.8%) Need to borrow against SOL/LSTs? Kamino (rich LST support) or marginfi (staked-collateral options)
Trading with integrated borrow? Drift for perp/spot margin combination Prefer battle-tested? Save (Solend) for proven stability
2. Connect Wallet and Check Rates
Use Phantom, Solflare, or similar Solana wallet. Keep 0.1-0.5 SOL for transaction fees. Compare live APYs across platforms as rates fluctuate constantly.
3. Deposit Collateral Conservatively
Start with stable assets (USDC, SOL) over exotic tokens. Review platform-specific parameters:
- LTV limits: 60-80% typical maximum
- Liquidation thresholds: Usually 5-10% above max LTV
- Borrow factors: Kamino’s risk-adjusted borrowing capacity
4. Borrow with Safety Buffers
Conservative approach: Borrow 50-60% of maximum capacity, not 80% Volatile collateral: Use even lower ratios (40-50%) for SOL, LSTs Monitor tools: Set health factor alerts through platform dashboards
5. Ongoing Management
Track positions through DeFiLlama or platform interfaces. Key metrics: health factor, utilization rates, collateral price changes. Rates change frequently – be prepared to rebalance or repay during high utilization periods.
Advanced Strategies with Examples
Leverage Loops on Kamino Multiply
1-click process: borrow SOL → swap to JitoSOL → supply as collateral → borrow again Creates leveraged LST exposure while earning staking rewards. Monitor borrow/supply rate spreads as they determine profitability.
Staked Collateral on marginfi
Borrow against staked SOL without giving up ~5-7% staking yield. Capital efficient for SOL holders needing liquidity without selling positions.
Cross-Margin Trading on Drift
Deposit SOL, trade perpetuals – system automatically borrows USDC to settle trades. Integrated borrow/lend eliminates manual position management.
💡 Tip: Use platform simulators to model different price scenarios before executing leverage strategies. A 30% SOL drop significantly impacts health factors.
Risk Management Essentials
Liquidation risk: Overcollateralized positions face liquidation when LTV breaches thresholds. Always maintain buffers – if max LTV is 80%, keep actual usage below 70%.
Rate risk: Variable APRs can spike quickly during high utilization. Kamino’s July data shows 87.5% utilization driving 11.27% borrow rates – this can change rapidly.
Protocol risk: Stick to higher-TVL, audited protocols. Avoid shuttered platforms like Mango Markets (closed early 2025).
Network congestion: Maintain SOL balance for priority fees during volatility when urgent rebalancing becomes necessary.
Warning: A 10% collateral price drop can push a 75% LTV position to 83% LTV, triggering liquidation. Size conservatively and monitor actively.
Platform Selection Guide
For beginners: Jupiter Lend (simple interface, competitive rates) or Save (proven track record)
For LST holders: Kamino (extensive LST support, JitoSOL vaults) or marginfi (staked-collateral)
For active traders: Drift (integrated borrow/lend with derivatives)
For risk management: marginfi Arena (isolated pools) or Kamino (sophisticated risk framework)
For yield optimization: Compare live rates – Jupiter currently offers 7.9% USDC vs Kamino’s 3.8%, but rates fluctuate
Current Market Context
Solana lending has recovered strongly, with total protocol TVL reaching $4.3B across major platforms. Jupiter Lend’s rapid growth to $0.69B TVL since August 2025 launch demonstrates market expansion and user demand for competitive rates.
Platform concentration remains high – Kamino’s $3.0B represents ~70% of market share, followed by Jupiter’s growing presence. This concentration provides liquidity benefits but users should monitor governance and protocol risks.
Getting started safely:
- Test small: Start with $100-500 positions
- Established platforms: Kamino, Jupiter, or Save over newer protocols
- Conservative LTV: 50-60% of maximum, not 75-80%
- Monitor actively: Set price alerts and health factor notifications
- Emergency SOL: Keep 0.1+ SOL for urgent transactions
