TLDR
- The KelpDAO rsETH hack on April 20 triggered a chain reaction across Solana’s DeFi ecosystem
- USDC lending utilization rates have surged to near-maximum levels across major Solana protocols
- Jupiter Lend hit 99% utilization with $340 million of its $421 million supply already lent out
- Kamino and Marginfi protocols are also under heavy strain, with rates climbing sharply
- Available liquidity across Solana’s lending markets is nearly exhausted
On April 20, 2026, a hack targeting KelpDAO’s rsETH product set off a chain reaction across decentralized finance protocols built on Solana.
DeFi Funds Outflow Spreads to Solana
Following the KelpDAO rsETH hack, the chain reaction has further spread from EVM networks to Solana. Several USDC markets on Solana’s leading lending protocol Kamino have seen sharp surges in deposit APY and utilization rates. The Prime… pic.twitter.com/mbAaEi31R4
— Wu Blockchain (@WuBlockchain) April 20, 2026
The fallout has been swift. Funds began flowing out of DeFi platforms, tightening liquidity across Solana’s stablecoin lending markets. Several major protocols are now operating at near-maximum capacity.
Jupiter Lend is among the hardest hit. The platform holds a total USDC supply of $421 million, with $340 million already lent out. After accounting for reserve liquidity, utilization has climbed to roughly 99%. The current lending rate sits at 4.36%.
Kamino Prime Market is also under pressure. It shows a total USDC supply of around $186.8 million, with $178.8 million borrowed. That puts utilization close to 96%, with the lending rate rising to 8.92%.
Kamino’s Main Market tells a similar story. Approximately $172 million in USDC is supplied, with $164 million lent out. Utilization there stands at around 95.75%, and the lending rate has reached 10.2%.
Smaller Protocols Feel the Strain Too
Marginfi reports a USDC lending utilization rate of 88.32%, with its lending rate currently at 7.65%. Save Finance, formerly known as Solend, has seen utilization rise above 70%, with a lending rate of 3.9%.
These numbers show that the stress is not limited to the largest platforms. It has spread across the Solana lending ecosystem.
High utilization rates mean there is very little USDC left to borrow. For users who need liquidity, this limits their options and pushes borrowing costs higher.
The tightening conditions have also affected prediction markets tied to Solana’s price. The market pricing Solana above $150 by April 13–19 sits at just 0.4% YES odds. No actual USDC volume has been traded in that market, which weakens the reliability of those odds.
What the Data Shows About Market Confidence
For April 16, one market prices Solana above $100 at 100% YES. But with zero actual volume behind that figure, it carries little real weight.
A YES share on Solana reaching $150 by mid-April costs just 0.4 cents and pays $1 if correct. That 250x return reflects deep skepticism in the market about a near-term price recovery.
The KelpDAO hack has not yet been fully contained in terms of its effect on liquidity. Lending rates continue to rise as utilization remains at elevated levels across Solana’s major protocols.
As of April 20, Kamino’s Main Market lending rate of 10.2% stands as the highest reported across the affected platforms.
