Kamino has launched a new isolated lending market for Pax Gold, allowing users to borrow against tokenized gold on Solana.
The PAXG Market is curated by Steakhouse Financial and lets users supply PAXG as collateral to borrow USDG. USDG holders can also lend into the market and earn yield generated by borrower demand.
Pax Gold is a gold-backed digital asset issued by Paxos, with each PAXG token representing one fine troy ounce of a London Good Delivery gold bar held in LBMA vaults. PAXG holders own the underlying allocated gold, which is held in custody by Paxos Trust Company and audited monthly. With a market capitalization of approximately $1.7 billion, PAXG is one of the largest and most established tokenized real-world assets in crypto.
An Isolated Market With Dedicated Risk Parameters
The PAXG Market operates independently from Kamino’s other lending markets.
Its collateral, liquidity, oracle infrastructure and risk parameters are scoped specifically to PAXG and USDG. Activity within the market does not directly affect Kamino’s SOL, Bitcoin or other isolated markets, while changes elsewhere on the protocol do not alter the PAXG market’s risk profile.
The market launches with a maximum loan-to-value ratio of 75% and a liquidation threshold of 80%. That means users can initially borrow up to 75% of the value of their deposited PAXG. If the value of the debt rises to 80% of the collateral’s value, the position becomes eligible for liquidation.
Steakhouse Financial is responsible for ongoing market oversight and parameter management. The curator can adjust the market’s settings as liquidity, borrowing activity and broader market conditions evolve.
The PAXG Market also uses dedicated oracle infrastructure with pricing powered by Chainlink.
PAXG is priced through a checked PAXG/USD feed that is backstopped by a Chainlink time-weighted average price for gold. The design evaluates both the market price of the token and the reference price of the metal backing it. Staleness checks are applied to each feed, helping prevent the market from relying on outdated pricing during volatile or disrupted conditions.
Gold Finds a Credit Layer on Solana
The launch continues Kamino’s expansion beyond crypto-native collateral, with the protocol now supporting isolated credit markets for tokenized equities, private credit, Treasury-linked assets and gold. Each operates with dedicated liquidity, risk parameters and oracle infrastructure tailored to the underlying asset.
For gold, the shift is especially significant. Tokenization has already made PAXG transferable and divisible onchain, but the new market makes it productive collateral, allowing holders to borrow USDG without selling their exposure to allocated physical gold.
More broadly, the market shows how blockchains can connect assets and financial applications that remain separated across legacy systems. By pairing PAXG with USDG inside a dedicated market, Kamino gives tokenized gold a more active role within Solana’s onchain financial system and moves it beyond a passive store of value.
