The ongoing debate between the founder of Aave and key figures in the Solana ecosystem has stirred up discussions about decentralized money markets. Alex Svanevik, the founder of Nansen, raised concerns about the absence of Aave on Solana, especially with Kamino emerging as the largest money market protocol on the platform.
Aave, a decentralized finance (DeFi) platform, is currently available on 13 blockchains and has a total value locked (TVL) of nearly $19.6 billion. In comparison, Kamino, Solana’s flagship money market protocol, has a TVL of over $2.3 billion.
Kyle Samani, a partner at Multicoin Capital, highlighted Kamino as a competitive money market protocol. However, Svanevik pointed out that Aave’s TVL is almost 10 times larger than Kamino’s, indicating that users would prefer to access Aave on Solana if given the opportunity.
Lily Liu, the president of the Solana Foundation, defended Kamino by stating that it is a superior product, adding that metrics can change over time. This statement sparked controversy among enthusiasts, with some questioning Liu’s impartiality due to her role within the Solana ecosystem.
Mats Olsen, co-founder of Dune, suggested that Solana should consider integrating Aave instead of engaging in comparisons with existing applications. Stani Kulechov, the founder of Aave’s parent group Avara, criticized Solana’s approach to DeFi, accusing Kamino of replicating Aave’s technology and imposing restrictions on certain users.
Anatoly Yakovenko, co-founder of Solana Labs, joined the discussion by emphasizing the importance of revenue generation over TVL. While Aave boasts a higher TVL than Kamino, the Solana-based money market has generated $52 million in annualized revenue compared to Aave’s $126.3 million.
Kulechov attributed the revenue disparity to Kamino’s higher fee structure, particularly in relation to the USD Coin (USDC) Reserve Factor. He suggested that Solana’s lack of competition may be impacting users who are paying a premium for using the platform.
Despite the ongoing debate, both Aave and Kamino continue to play significant roles in the DeFi space. Aave recently processed $210 million in liquidations following a market crash, while Kamino introduced new tools to enhance user borrowing experiences.
As the discussion around decentralized money markets on Solana evolves, it remains to be seen how Aave and Kamino will continue to shape the DeFi landscape on the platform.