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Crypto DeFi

Kamino pauses SOL/BTC borrowing, says unaffected by Binance incident

Solana lending protocol Kamino said it has paused borrowing in its SOL/BTC market as a precaution, though it has not been affected by the Binance incident. The move follows an apparent attack on a Binance hot wallet, with a linked address having used USDT collateral on Aave to borrow ETH. Kamino said it is monitoring the situation and coordinating with partners.

Original source

AI take

Kamino's precautionary pause is a telling signal about how DeFi lenders now treat cross-protocol contagion: even without direct exposure, a market tied to volatile collateral gets frozen while the wider incident is assessed. The action matters most for borrowers in that SOL/BTC pool, whose positions are now constrained by a risk decision made elsewhere in the stack, and for how other Solana lending venues calibrate their own exposure to the Binance fallout. The open question is whether the pause stays brief and localized, or becomes a template for preemptive halts across Solana lending markets as details of the incident emerge.

Generated by AI for reference only.

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