Borrowing of PayPal's stablecoin, PYUSD, on Kamino Finance surged by $24 million in a single week, a 60% increase that brings total borrows to an estimated $64 million. The rapid growth follows a strategic adjustment to the protocol's borrow curve, which made it significantly cheaper to borrow PYUSD against other assets.

This spike in demand is being met with deep liquidity, as over $100 million in PYUSD remains available for lending on the platform. Despite the increased borrowing activity, interest rates remain highly competitive, staying below 2.5% APY. The move highlights an aggressive strategy by the Solana-based protocol to embed PYUSD within its ecosystem, building on previous incentive campaigns that successfully attracted initial deposits.

This development comes as Kamino also rolls out a new feature for its native swap aggregator. Users can now see a real-time comparison of on-chain swap rates against prices on centralized exchanges (CEXs), factoring in variables like price impact and slippage. The move signals Kamino's dual focus on growing its lending markets while also improving its trading tools and user experience.