Is Kamino Finance Safe?
Risk Grade: C+ (38/100)
Kamino Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — large shared lending pool creates contagion risk where one bad apple spoils the whole barrel
Solana's second-largest lending protocol, where you can deposit crypto to earn interest, borrow, or provide automated liquidity. It manages $1.6B in deposits with $6.1M in funding. Its C grade reflects the risk that one bad token listed in the shared lending pool could contaminate all depositors, plus a past bug that allowed users to withdraw more collateral than they should have.
TVL
$2.0B
Mechanisms
8
Interactions
5
Value Grade
C+
Key Risks for Kamino Finance Users
All lending happens in one shared pool. If a single listed token gets manipulated or goes to zero, every depositor in the pool can lose money.
A previous code bug let users withdraw excess collateral. While patched, similar precision errors could resurface as new features are added.
During volatile markets, the protocol can force-close your positions even if your individual loan is healthy, because it adjusts limits system-wide
Top Risk Factors
- •Unified liquidity market allows risk spillover from one toxic asset to contaminate all lending positions
- •Historical precision loss bug in exchange rate calculation allowed excess collateral redemption
- •Auto-deleverage mechanism can force unwinding of positions during volatile markets, creating cascade liquidations
Risk Score Breakdown
Kamino Finance's highest risk area is Scale Exposure (7/10). Here's how each dimension contributes to the overall 38/100 score:
Read the Full Kamino Finance Risk Report
This protocol has 2 collapse scenarios. 3 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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