kToken Collateral

Kamino Lend can take concentrated liquidity (CLMM) LP positions as collateral, making it the first protocol in DeFi that allows users to provide leverage CLMM liquidity across a wide range of strategies.

These LP tokens, called kTokens, are minted when depositing into Kamino's automated liquidity vaults.

LP yield is always auto-compounded When your kToken is deposited in Kamino Lend, it will continue to earn all the yield from the LP position. kTokens are built to be the ultimate yield-bearing collateral asset.

How it Works

  • When you deposit into any of Kamino's liquidity vaults, you receive a kToken in return, which represents the value of your liquidity position. All the fees & incentives you earn in the liquidity position (trading fees, DEX incentives, and Kamino incentives) are auto-compounded into your kTokens

  • kTokens can be deposited as collateral into Kamino Lend, just like any other token like SOL or USDC. While deposited, you continue to earn the yield from the liquidity

  • You can borrow assets against these kTokens to loop your liquidity, or even borrow assets to remain delta-neutral

kToken Lending Strategies

The ability to use kTokens as collateral creates a wide range of strategies for users. We'll cover some of these below:

This kToken strategy type will soon be automated in a one-click Multiply vault


Deposit a SOL or stablecoin kToken & borrow the underlying asset to loop yield with minimal liquidation risk

Applicable kTokens

Any with price exposure to a single asset (eg. mSOL-SOL, UXD-USDC, bSOL-JitoSOL etc.)

Example: mSOL-SOL

If you deposit into the mSOL-SOL vault on Kamino, you receive the kmSOL-SOL kToken. You can then deposit this kToken into Kamino Lend. If you borrow SOL, you maintain SOL-only exposure in the position.

The borrowed SOL can then be redeposited into the mSOL-SOL vault, which means you mint more kmSOL-SOL tokens. These kToken can once again be deposited into K-Lend to borrow more SOL.

As long as the liquidity vault yield remains higher than the borrow APY of SOL, your position earns positive Net APY.

Strategy Benefits

  • Minimal liquidation risk

  • Boosted yield

Strategy Risk

  • Asset depeg risk

Current LP tokens accepted as collateral:





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