DeFi

Kamino Finance Integrates PayPal's PYUSD Stablecoin for Leveraged Yield Farming

DeFi users can now borrow PYUSD against PRIME collateral, which is backed by home-equity loans from Figure, amplifying yields up to 8.3x.

February 11, 2026

Companies mentioned:

Kamino Finance

PayPal

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Quick Take

• PayPal's PYUSD is now available for borrowing on Kamino Finance.
  

• Users can collateralize PRIME tokens, which are backed by Figure's home-equity loans, to borrow PYUSD.
  

• Kamino's Multiply feature allows for up to 8.3x leverage on the ~8% APY from PRIME.
  

Solana DeFi leader Kamino Finance has just activated PayPal USD (PYUSD) in its dedicated PRIME Market, opening a new pathway for users to borrow stablecoin liquidity against PRIME collateral and multiply exposure to one of the most attractive real-world asset (RWA) yields on-chain.

Key Details of the Integration

• PRIME — a yield-bearing token issued by Figure Technologies — is now usable as collateral in Kamino’s PRIME Market.

Users can deposit PRIME and borrow PYUSD via Kamino’s Multiply feature (leveraged looping).

The underlying PRIME yield (~8% APY) comes from U.S. home-equity lines of credit (HELOCs) originated and serviced by Figure.

With up to 8.3× leverage, depositors can theoretically amplify that base yield significantly while keeping liquidation risk within the market’s parameters.

How It Works (Simplified)

1. Deposit PRIME (backed by real U.S. home-equity loans).
2. Borrow PYUSD against it in the PRIME Market.
3. Use the borrowed PYUSD to buy more PRIME (or loop through Multiply vaults).
4. Earn the enhanced yield on the leveraged position while paying the prevailing PYUSD borrow rate.

This creates a clean, regulated RWA yield loop on Solana: real estate credit → tokenized yield → leveraged stablecoin borrow → more tokenized yield.