Kamino Docs
Risk
Risk
  • Kamino Lend
  • Risk Dashboard
  • Oracles
    • LST Oracles
  • Risk Assessment Framework
  • Liquidity Risk
    • Introduction
    • Interest Rates
  • Insolvency Risk
    • Introduction
    • Asset Risk Framework
      • Oracle Pricing
      • Smart Contract Risk
      • Depeg Risk
      • Counterparty Risk
    • Market Risk
      • Token Volatility
      • Token Liquidity
      • Trading Volumes
      • Price Impact Analysis
      • Price Resilience Analysis
      • Market Capitalization
      • Relation to Other Tokens
  • Protocol Mechanisms
    • Automated Deleverage
    • Daily Caps
    • E-Mode Caps
  • Insurance Fund
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  1. Insolvency Risk
  2. Market Risk

Token Liquidity

PreviousToken VolatilityNextTrading Volumes

To ensure protocol solvency, the single most crucial metric is maintaining sufficient token liquidity to perform profitable liquidations of unhealthy loans. Token liquidity can come from multiple sources: natively on Solana, cross-chain (e.g. WETH on Ethereum), or via centralized exchanges.

Token liquidity is measured using the following metrics:

  • Hourly trading volumes (accounting for wash trading)

  • Immediate price impact of token swaps (across a range of USD-valued sizes)

  • Price resilience post-token swap

View Live Liquidity Dashboard
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