FalconX x Kamino: Expanding Institutional Credit on Solana
As institutions increasingly adopt on-chain credit, FalconX’s lending desk has integrated Kamino, a leading decentralized lending protocol on Solana, into its lending and structured product offerings. By utilizing Kamino’s non-custodial infrastructure and fixed-rate lending design, FalconX can access differentiated liquidity, maximize capital efficiency, and support the growing institutional demand for predictable on-chain credit on one of the world’s fastest blockchains.
For FalconX, Kamino is not simply another venue; it is a strategic component of how we manage our lending business and make our balance sheet more efficient as one of the largest sell-side dealers in the industry. FalconX is also proud to be a design partner for Kamino’s fixed rate lending product, which addresses one of the major limitations of decentralized lending for institutions.
Fixed Rate Lending: The Missing Prerequisite for Institutional Scale
For institutions, one barrier to scaling on-chain credit activity is the ability to fix interest rate exposures and achieve predictable funding costs. While some DeFi users may chase the highest yields, institutional participants have to focus more on their Asset-Liability Management, and the ability to access fixed duration funding is a core component of any institution’s balance sheet management.
Most DeFi lending pools offer variable rates that can swing significantly based on utilization and market conditions, making it difficult to hedge interest rate risk or plan cash flows, oftentimes limiting the amount of capital institutions can deploy on-chain.
Kamino’s fixed rate lending offering directly addresses this by allowing for duration matching and locking in fixed rates to hedge interest rate volatility. This supports capital planning for corporate treasuries, idle fund balances, and any strategy requiring week-over-week cash-flow certainty. The capability is particularly relevant to FalconX’s lending desk, where the ability to fix duration is a critical part of operationalizing strategies at an institutional scale.
Flexible Credit Facility
FalconX also leverages Kamino as a flexible, open-term credit facility. Its pool-based structure provides dynamic rates and immediate liquidity, which is particularly effective for managing variable operational flows. The transparency of Kamino’s risk engine makes it a practical complement for managing working capital.
Kamino Lend has evolved into a critical credit instrument for our desk. Now moving beyond short-term liquidity, Kamino is providing the term structure necessary to operationalize our Asset-Liability Management. By locking in fixed rates leveraging Kamino’s unique pool of liquidity and broad collateral support, we can minimize rate volatility and duration-match in a unique way within the DeFi ecosystem.
– Craig Birchall, Head of Lending, FalconX
How Kamino Fits Into FalconX’s Credit Stack
FalconX integrates Kamino across its workflows to better access Solana DeFi. Kamino provides:
- Risk Controls: A risk engine with automated limits and dynamic liquidation parameters.
- Security & Verification: An open-source codebase with 18+ audits and formal verification by Certora and OtterSec.
- Liquidity: Access to Solana’s most liquid lending markets and DEX vaults.
- Capital Efficiency: Innovations like eMode and single-sided liquidity provisioning.
- Institutional Compatibility: Support for varied collateral types, including emerging RWA (Real World Asset) integrations.
With over $8B in loan originations and a $1.5B+ loan book secured by a range of digital assets and secured collateral packages, FalconX operates one of the largest institutional lending desks in the industry. Integrating Kamino improves capital utilization, reduces funding volatility, and expands the ecosystem of venues through which we can serve institutional clients - while helping shape the next generation of on-chain credit infrastructure.
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