Kamino Finance Increases PYUSD Borrowing Limits

Kamino Finance has increased the global borrowing limit for PayPal’s stablecoin, PYUSD, to $20 million. This expansion allows users to borrow PYUSD using any collateral asset they hold on the platform. Notably, the PYUSD borrowing rate remains stable, even with an 80% utilization rate. This ensures a stable borrowing environment regardless of the loan amount.

The PYUSD borrowing limit on the Ethena Labs market has also been increased to $10 million, allowing users to leverage their positions with USDe and sUSDe. The current PYUSD borrowing rate on this market is 2.07%, making it an attractive option for those looking for yield and wanting to take advantage of low borrowing costs.

The borrowing capacity for PYUSD is divided into two main markets offering different collateral options. On the “Main” market, “Any Asset” has a borrowing capacity of $20 million, while SOL offers a larger capacity of $100 million.

In the Ethena market, sUSDe and USDe have a combined capacity of $10 million. The annual interest rate on loans is 4.06% for both Any Assets and SOL, while sUSDe and USDe offer 2.07%.

Source: Camino

Investors have had mixed reactions to these developments. In particular, on his X account, influencer Easy highlighted that PYUSD offers stablecoin holders an attractive opportunity to earn APY on platforms like Kamino Finance, ranging from 13.8% to 16.4%. Easy encouraged stablecoin holders, especially USDC and USDT “maxi,” to consider trading for PYUSD for higher returns.

According to Easy, the PYUSD-USDC pool offers an annualized return of 13.80%, while the PYUSD-USDT pool provides a slightly higher return of 14.70%. The highest return is seen in the PYUSD-USDE pool at 16.42%.

However, some community members have expressed concerns about security. Investor Orangie expressed concerns about potential security risks, emphasizing the need for a smooth withdrawal process in the event of an exploit. Easy acknowledged the risk, but expressed confidence in Kamino Finance due to its positive track record to date.