Kamino Monthly Data Report (November)

Kamino Monthly Data Report (November)

Note: This article is not financial advice. Kamino Finance does not endorse any tokens or platforms mentioned in this article.

This is Kamino Finance’s first data report collecting key statistics relevant to the health and success of Kamino’s decentralized finance (DeFi) sector. Overall, the contagion stemming from FTX’s bankruptcy has reduced the total value locked (TVL) in Solana DeFi; however, the network’s projects and DeFi primitives remain poised for recovery.

Much of the data displayed in this report have been traunched to reflect two different periods. The effects of FTX’s announced insolvency have been a major influence on user activity and the crypto market in general, so the month preceding November 7th and the days following will be necessarily examined on separate terms.

Assessing DeFi TVL Across Multiple Blockchains (Pre-FTX)

During most of the month, DeFi TVL remained steady across most of the Top 10 blockchains. The largest differences between minimum and maximum TVL can be seen on Solana (33%) and BSC (16%), most likely due to the Mango Markets and BSC exploits.

Assessing DeFi TVL Across Multiple Blockchains (Post-FTX)

The total value locked in DeFi smart contracts decreased across the board for all blockchains following the bankruptcy of FTX. Solana experienced the sharpest decline in TVL as it dipped under $300 million at the beginning of November from over $1 billion a month earlier.

As users withdrew liquidity from Solana, the network’s native token, SOL, also fell in value by around half, further exacerbating the loss of TVL. From November 8, Solana’s DeFi TVL plummets and then stabilizes into a much less rapid decline.

Assessing Kamino Finance Pre and Post-FTX Crash

Kamino averaged 176.8 interactions a day from an average of 60.5 wallets before the FTX crash. Post-crash, Kamino experienced an average of 101.8 daily interactions from an average of 28.55 wallets.

Kamino suspended deposits on November 10 and resumed on November 23, first with stablecoin vaults and then opening all vaults on November 25.

Daily Active Wallets on Kamino Finance Solana DeFi Protocol Before and After FTX Bankruptcy
Courtesy of Flipside Crypto.

Across this same period, there was a major spike in withdrawals from Kamino on November 8-11, with a peak of 239 withdrawals on the 9th. Withdrawals began subsiding by the 12th, with at least 4 withdrawals per day and a maximum of 26 withdrawals.

Deposits and Withdrawals on Kamino Finance Solana DeFi Protocol Before and After FTX Bankruptcy
Courtesy of Flipside Crypto.

Kamino reached a peak TVL of around $6 million before the FTX crash. Post-crash, Kamino’s TVL dipped to below $1 million. Since deposits were reinstated on November 23, Kamino TVL has risen to around $1.7 million at the time of writing.

Kamino Finance - Solana DeFi CLMM Yield Protocol TVL Chart
Courtesy of DeFi Llama.

Compared with other yield protocols on Solana, Kamino has shown the strongest comeback at the time of writing, with an increase of 71.43% in TVL in one week. The next highest increase in yield protocol TVL stands at around 6%, with the low-end of the spectrum at a negative, or -13.16% for the week.

Solana Crypto DeFi Yield Farming Protocol TVL Rankings
Courtesy of DeFi Llama.

Comparing Kamino’s inflows with Solana DeFi overall, the protocol has attracted the third-highest rise in TVL over the week since reopening deposits.

Solana Crypto DeFi Protocol TVL Rankings and Biggest Increases
Courtesy of DeFi Llama.

Solana-native Stablecoins: Daily Active Users (DAU) and New Users (Oct 7 - Nov 7)

Observing that stable strategies account for the majority of users’ deposits on Kamino, Solana-native stablecoin projects will be examined more in-depth. Kamino Finance was incubated by core contributors to the stablecoin project, Hubble Protocol, whose USDH is the most represented stablecoin on Kamino.

Hubble’s daily active user (DAU) count reached an average of 63.4 users per day during the period between October 7 and November 7, accounting for over half (52.7%) of all DAU between the Solana-native stablecoin projects listed.

A total of 127 daily new users (DNU) borrowed USDH on Hubble, more than twice the DNU for all other stablecoin protocols mentioned in this report. Hubble’s DNU accounts for 47% of all DNU.

Solana DeFi Stablecoin Protocol rankings by active users
Pie chart of Solana DeFi Stablecoin Protocol rankings by active users before FTX Bankruptcy

Daily Average Stablecoin Supply and Volume Pre-FTX (Oct 7 - Nov 7)

During the month preceding crypto’s latest black swan, USDH had an average circulation of around 8.5 million with 4.8 million in daily transaction volume.

Daily Average Stablecoin Supply and Volume Post-FTX (Oct 8 - Oct 10)

The fallout from Alameda Labs has precipitated a 69% drop in USDH circulation from November 9 to 10. Over a 24-hour period, around 5.6 million USDH were returned to the protocol as loan repayments and burned.

Best Solana DeFi Native Stablecoin rankings by daily supply during FTX Crash

These three days attracted higher than normal volume compared with the preceding month. The 9th attracted 6x the volume of the previous monthly average.

At the time of writing, there are 5,104 unique wallets holding USDH. In comparison, UXD and USH are held by around 3x fewer wallets than USDH, and USDr is held by around 16x fewer wallets. Users holding USDH make up 60.6% of the wallets for reported Solana-native stablecoin.

Best Solana DeFi Native Stablecoin rankings by active holders and users

Total Solana-Native Stablecoin Holders

Best Pie Chart of Solana DeFi Native Stablecoin Protocols by current holder count

Summary of Solana DeFi and Kamino Finance

Overall, the bankruptcy of FTX and the resulting contagion has hit Solana DeFi the hardest out of all DeFi chains. This can possibly be attributed to several factors related to the perceived close relationship between SBF-related projects and Solana.

The TVL of all Solana projects saw sharp drops during the height of market volatility stemming from FTX, and liquidity continued leaving projects at a much slower rate in the days after the crash. Kamino Finance experienced a similar decline in TVL compared with the rest of the ecosystem.

Nearly three weeks after the crash, users are returning to Kamino and depositing their funds. Kamino has made one of the strongest comebacks in Solana DeFi, with the third-highest rise in Solana DeFi TVL with slightly over 70% growth since reopening its vaults.