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Tutorial: How to borrow tokens on Solana

Updated: May 22, 2025
Published: May 20, 2025
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Learn how to borrow tokens on Solana: a step-by-step guide to using Kamino Finance, understanding loan-to-value ratios, and managing your borrowed assets.

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Video Tutorial

We’ll dive into how to borrow tokens on Solana.

How lending platforms work

Before we start, it's important to understand how lending platforms like Solend and Kamino Finance work and the risks involved in liquidation, which depend on the liquidation threshold. To learn more about this, you can check out our tutorial on how crypto lending works. If you borrow tokens, you will have to pay a certain interest for it, which varies depending on supply and demand.

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Set up a wallet and get funds

For this tutorial, you will need a Solana wallet. If you don’t have one, check out our tutorial on how to get started with Phantom wallet. You will also need SOL to pay for gas fees. To add funds, watch our tutorial on how to use Phantom wallet.

Using Kamino Finance

Now, let’s start! In this example, we will use Kamino Finance. To access it, tap on the explorer icon, type "Kamino" in the search bar, and access the website. You will see an interface where you can lend and borrow tokens. First, you will need to supply tokens to use as collateral. To learn how to supply tokens, you can check out our video on how to stake tokens on Solana. When supplying tokens, it’s important to check the LTV or Loan-to-Value ratio. This is the liquidation threshold we mentioned earlier. Once you have supplied tokens, you are ready to borrow. Search for the asset you want to borrow on the market. In this case, let’s borrow SOL. You can see the borrow annual percentage yield, which is the annual interest you will have to pay. This interest is automatically added to your borrowed amount over time. Now, you need to tap on “Borrow.” Type the amount of tokens you want to borrow, taking into account the LTV value of your supplied asset, and try to borrow a smaller percentage of your LTV value to reduce the risk of liquidation. Then tap “Borrow” again. Confirm the action in your wallet, and once the transaction is executed, you will see your borrowed balance. You can repay the debt whenever you want by tapping on “Repay” and typing the amount of tokens you want to repay.

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