Key Points
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Project 0 partners with Kamino to unify DeFi liquidity and lending.
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Users can borrow using a single credit pool across platforms.
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Integration improves capital efficiency and risk management.
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DeFi users gain flexibility with a single margin account.
Project 0 is integrating Solana-based liquidity, marking a major step toward unified decentralized finance.
The partnership with Kamino allows users to access cross-margin lending through a single pool of credit. This move aims to simplify DeFi lending and improve capital efficiency across multiple platforms.
As I see it, this collaboration addresses a long-standing issue in decentralized finance — fragmented capital management. Many DeFi users face high collateral demands across different platforms, reducing liquidity and increasing the risk of liquidation. Project 0 and Kamino now bring a structure that offers flexibility, control, and better use of collateral.
Unified margin accounts redefine DeFi lending
Project 0 and Kamino’s integration allows users to manage all positions within one margin account. Borrowers can now use their Project 0 and Kamino deposits together, enabling borrowing and lending through a shared credit pool.
This system merges loan-to-value (LTV) ratios, borrow weights, and interest rate figures from both platforms in one interface. For the first time, users can get a full view of their risk exposure without manually tracking multiple wallets or dashboards.
MacBrennan Peet, founder of Project 0, stated that cross-margin lending across multiple venues gives users a complete overview of portfolio-wide risk. The integration also boosts overall liquidity within the Solana DeFi ecosystem. By connecting these systems, capital flows more freely and efficiently, creating a more stable environment for traders and lenders alike.
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A resilient response after the crypto flash crash
Project 0 is integrating Solana-based liquidity, which comes shortly after one of the largest liquidation events in crypto history. Nearly $10 billion in open interest was wiped out due to a sudden flash crash in prices. For many DeFi projects, the event exposed weaknesses in collateral and liquidation management.
Project 0 and Kamino, however, came through without issue. Kamino reported zero bad debt, while Project 0 successfully processed over 2,000 liquidations without losing solvency. Peet mentioned that both teams modeled such market crashes in advance, testing the solvency and resilience of their systems.
By integrating Kamino, Project 0 now operates under Kamino’s strict risk parameters. This means Project 0 inherits Kamino’s risk profile but does not modify it, ensuring additional stability. As Peet explained, all risk controls remain under Kamino’s management, protecting users against unintended exposure.
Improving liquidity and reducing collateral inefficiency
One of the biggest advantages of this move is how it changes collateral usage. Previously, users had to overcollateralize separately on each DeFi platform. This practice fragmented capital, forcing traders to lock up funds in multiple pools. Even when users held offsetting positions, they still faced liquidation risks.
The unified margin model now eliminates that inefficiency. Users can borrow, lend, and leverage assets from a shared pool without spreading collateral across platforms. This improves liquidity and lowers the overall cost of capital.
According to Project 0, the integration also includes partial liquidations. This means only the minimum necessary portion of a user’s assets will be sold to restore balance. This approach reduces loss impact and supports long-term stability.
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Phased rollout and user access
The rollout will begin with Project 0’s top 5,000 users. After that, the integration will open to the public in phases. This gradual release allows both teams to monitor performance and ensure system reliability.
Kamino’s spokesperson confirmed that the platform will maintain complete control over its own parameters. Project 0’s integration simply connects to Kamino’s existing structure, offering access without changing the underlying risk design.
This cooperation strengthens Solana DeFi as a whole. With improved liquidity and risk transparency, the integration may encourage institutional participation in decentralized finance, especially from funds that value efficiency and solvency.
From my standpoint, this is a significant milestone for DeFi. It reflects a new generation of platforms focusing on practical efficiency, rather than speculative gains. Project 0 and Kamino are setting an example for future DeFi projects that aim to balance innovation with reliability.