As institutions adopt on-chain credit, FalconX’s lending desk has integrated Kamino, a “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 liquidity, maximize capital efficiency, and support the institutional demand for “predictable on-chain credit on one of the world’s blockchains.”
For FalconX, Kamino is a strategic component of how they “manage their lending business and make their balance sheet more efficient as one of the largest sell-side dealers in the industry.”
FalconX is also pleased to be a design partner for Kamino’s fixed rate lending product, which reportedly addresses “one of the limitations of decentralized lending for institutions.”
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 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 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 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 relevant to FalconX’s desk, where the ability to ‘fix duration is a critical part of operationalizing strategies at an institutional scale.”
FalconX 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.”
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 (reported) $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 institutional lending desks in the industry.”
Integrating Kamino reportedly improves capital utilization, reduces funding volatility, and expands the ecosystem of venues “through which they can serve institutional clients – while helping shape the next generation of on-chain credit infrastructure.”