The isolated market lets users post Pax Gold as collateral and borrow USDG, while Kamino’s OnRe and Ethena markets continue expanding alongside broader Solana lending growth.
Kamino Finance has launched the PAXG Market on Solana, allowing users to supply Pax Gold as collateral and borrow USDG in a dedicated isolated lending market curated by Steakhouse Financial. Users can buy PAXG, deposit it into Kamino, and borrow USDG against their holdings at 1.9% APY, extending tokenized gold’s use as onchain collateral on the platform. Chainlink provides the market’s price feeds, while the setup uses separate risk parameters and oracle infrastructure from Kamino’s other markets. Pax Gold is backed by physical bullion, with each token representing 1 fine troy ounce of a London Good Delivery gold bar stored in LBMA vaults. Holders own the underlying gold through Paxos Trust Company, described here as an OCC-regulated custodian that conducts monthly audits of allocated reserves. The launch comes as Kamino’s real-world-asset lending activity grows. Its OnRe Market has climbed above $206 million in total market size after expanding nearly 70% over the past 90 days, with current figures showing $206.1 million in total supply, $127 million of ONyc used as collateral, $69.7 million borrowed, 24% growth over 30 days, and 66% growth over 90 days. Kamino’s Ethena Market, which launched on May 13, has reached $522.8 million 75 days later after becoming the platform’s fastest market to exceed $400 million in size on May 14. More broadly, Blockworks’ Solana Q2 Tokenholder Report said deposits across Kamino and Jupiter Lend reached $4.1 billion at quarter-end, with outstanding loans totaling $1.6 billion.