USD1 STABLECOIN Lends on Kamino: Solana Yield Incentives

Solana DeFi just gained a politically linked USD1 stablecoin option as Kamino adds the asset to its lending and borrowing markets with new rewards.

Kamino lists USD1 with WLFI and KMNO lending incentives

World Liberty Financial has launched USD1 on Kamino, calling it Solana’s first lending market for the token, complete with supplier incentives in WLFI and KMNO. The integration gives users new ways to lend and borrow on Solana while earning extra yield in governance and liquidity tokens.

Kamino emphasized that the stable asset is fully backed by U.S. government money market funds and cash equivalents. Moreover, the platform framed this structure as similar to traditional savings products, but delivered through on-chain infrastructure that settles in seconds.

The team promoted the launch with a concise message on X: “USD1 is now live on @kamino. Solana’s first lending market with supplier incentives in $WLFI and $KMNO. Supply. Borrow. Access incentives. USD1 szn is here.” That said, the long-term traction will depend on real demand for the new product.

What USD1 is and how the Kamino integration works

USD1 is a stablecoin pegged one to one to the U.S. dollar, with each token redeemable for exactly one dollar. Issued by World Liberty Financial, a DeFi venture tied to the Trump family, it relies on conservative assets such as Treasury-focused money market funds to maintain its peg.

In practice, users can deposit USD1 into Kamino, one of Solana’s leading lending protocols, to supply liquidity or to borrow other assets against their holdings. However, the distinctive element of this launch is the supplier reward program, which pays out additional yield in WLFI and KMNO to early participants.

This setup effectively turns Kamino into a yield gateway for the usd1 stablecoin, where lenders earn interest from borrowers plus extra token incentives. Moreover, the governance and liquidity roles of WLFI and KMNO within the ecosystem may help align users with the protocol’s longer-term growth.

A concrete use case highlights the appeal. Imagine a freelancer in Latin America who prefers dollar exposure over a volatile local currency. That user could hold USD1 to preserve value, lend it on Kamino at a 5% annual yield, and borrow SOL or another asset for trading, all with near-instant settlement on Solana.

DeFi growth on Solana and Kamino’s rising role

This integration arrives during an explosive phase for Solana DeFi. Total value locked on the network recently climbed above 10 billion dollars, supported by low transaction fees and high throughput that appeal to both retail traders and professional market makers.

Credible DeFi analytics show Kamino’s TVL has surpassed 2 billion dollars, making it Solana’s top lending hub by locked value. Moreover, that scale means newly listed assets such as USD1 can attract millions in deposits quickly, especially when combined with targeted WLFI and KMNO incentive programs.

Politically branded digital dollars have become a visible trend in 2024 as issuers seek differentiation. USD1 follows other real-world name offerings, such as PYUSD from PayPal, as projects try to merge established brands with on-chain utility. However, regulatory clarity and market trust will be decisive factors for long-term adoption.

Solana stablecoin adoption reaches new highs

The broader stablecoin backdrop on Solana continues to strengthen. Stablecoin users on the network have surged to a record 5 million wallets, an all-time high that underlines the chain’s rapid adoption curve across payments, trading, and DeFi.

This growth dynamic was captured in a recent community message: “$SOL stablecoin users had hit an all-time high at 5 MILLION wallets! That is 5M people actually using crypto for payments, not speculation.” Moreover, the message highlighted how Solana’s very low gas fees and fast transaction speeds make usage feel “like magic” for everyday users.

Stablecoins now power lending, borrowing, and swapping on major Solana platforms such as Kamino and Jupiter. With aggregate stablecoin supply on the network reaching $15 billion, up roughly 200% year over year, Solana is positioning itself as a core venue for on-chain finance beyond pure speculation.

That said, competition from Ethereum and other chains remains intense, and execution risk for newer issuers like World Liberty Financial is non-trivial. Still, Kamino’s support and incentive design give the usd1 stablecoin a strong starting point inside Solana’s expanding DeFi ecosystem.

So basically, the USD1 launch on Kamino combines dollar-pegged stability, WLFI and KMNO supplier rewards, and Solana’s fast, low-cost infrastructure, potentially drawing new users into on-chain lending and borrowing.