SOL Strategies CTO Max Kaplan recently hosted Viktor (DeusNero), Core Contributor at Kamino, for a discussion on Solana DeFi lending, protocol security, and how institutional constraints are reshaping liquidity access on-chain.

The conversation explored Kamino’s approach to risk management, why security culture matters at scale, and how new mechanisms like off-chain collateral and real-world assets (RWAs) are shaping the next phase of lending markets.

Date: March 5, 2026

Format: X Spaces Conversation Recap

Participants: Max Kaplan, CTO, SOL Strategies Inc. (CSE: HODL, NASDAQ: STKE) | Viktor (DeusNero), Core Contributor, Kamino

Why Kamino Has Earned Trust at Scale

Viktor noted that Kamino’s growth has been driven by a consistent philosophy: prioritizing security, even when it means slowing down.

“Kamino’s success today is the sum of all of the decisions we’ve made up to this point. Many times, those decisions were tradeoffs made to prioritize protocol security, even if it meant not taking the fastest route. We’ve never cut corners.”

He emphasized that those tradeoffs are not a one-time choice, but an operating mindset:

“For Kamino, security is part of the culture we embody, day in and day out.”

In practice, that means treating risk controls, audits, oracle integrity, and incident prevention and testing as foundational work, not optional layers.

Institutional Assets Sitting Idle and the Role of Off-Chain Collateral

Viktor pointed to a growing disconnect created by institutional participation: large pools of assets exist, but remain difficult to deploy into DeFi due to custody requirements.

“The institutional shift in crypto markets has left massive amounts of money sitting idle in qualified custodians, because that’s either where they feel safest or are legally required to keep assets custodied.”

He described off-chain collateral as a mechanism to bridge that gap:

“Off-chain collateral offers an exciting solution, enabling institutional players to borrow against their custodied assets without them ever having to leave custody. This will expand liquidity access through Kamino.”

The key point is that collateral can remain with a qualified custodian while still supporting borrowing activity, reducing operational and compliance friction for institutional users.

Why Overcollateralization Continues to Dominate DeFi Lending

Max and Viktor also discussed why undercollateralized lending remains difficult in crypto markets, and why DeFi has largely defaulted to overcollateralized credit models.

Viktor’s view was direct:

“Any attempts at under-collateralized lending has resulted in chaos. It’s much easier to do overcollateralized lending because it gives a buffer to enable liquidation while still maximizing the probability of the protocol not accruing bad debt and thus remaining solvent.”

In DeFi, enforceable liquidation is the core backstop that protects lenders and maintains solvency. Without predictable liquidation pathways, credit risk quickly becomes difficult to price and manage, particularly in volatile markets.

Bridging DeFi and Familiar TradFi Models

The conversation also touched on PRIME, a product designed with institutional participants in mind.

Viktor explained that certain financial models resonate more easily with traditional finance participants:

“For TradFi, an asset like Prime is more tangible than the ‘typical’ crypto asset. They understand people taking credit against their mortgages. It’s something they can calculate and are familiar with what they know from traditional systems.”

In this sense, DeFi products that mirror familiar lending structures may lower the barrier for traditional financial institutions entering the ecosystem.

Opportunity in a Bear Market

Despite the broader market cycle, Viktor noted that innovation within DeFi has remained active, particularly around yield-bearing assets and tokenized credit.

“Even though we’re in a bear market, it’s not boring at all. The current state of DeFi, and the importance of RWAs, present a lot of exciting opportunities for yield-bearing assets and tokenized assets in general.”

From Kamino’s perspective, RWAs and other structured yield products are not just narrative, they are increasingly integrated into on-chain markets, bringing new forms of collateral and demand into DeFi lending.

The Bigger Picture

The discussion underscored how DeFi lending is entering a new phase, one shaped by stronger risk frameworks, institutional participation and the integration of RWA’s.

For protocols like Kamino, success has not come from moving the fastest, but from maintaining discipline in areas that matter most: security, solvency, and liquidity access.

As the ecosystem matures, those design principles are becoming increasingly central to how on-chain credit markets operate.

Disclaimer

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