If you've been following the wild ride of crypto markets, you know that October 10, 2025, was a day for the history books. The entire sector took a nosedive after President Donald Trump announced hefty new tariffs on China, leading to a flash crash that wiped out billions in value. Bitcoin plummeted below $110,000, while altcoins like Ethereum, Solana, and XRP saw drops of 15% to 30% in mere hours. Over $7 billion in positions were liquidated across exchanges, leaving many traders reeling.

Amid this chaos, one Solana-based DeFi protocol stood out: Kamino Finance. In a tweet that quickly gained traction, the Kamino team announced that their users experienced zero bad debt, and their liquidation engine worked flawlessly. For those not deep in DeFi lingo, bad debt refers to losses that occur when a protocol can't fully recover funds from liquidated positions—basically, when the system fails to sell off collateral fast enough during a price drop. Liquidation engines are the automated systems that handle this process, kicking in to sell assets when loans become undercollateralized to prevent bigger losses.

The tweet from @kamino on X (formerly Twitter) read: "Despite the unprecedented price action, we’re happy to confirm that Kamino users incurred a total of $0 bad debt, and that the liquidation engine performed exactly as expected." They went on to emphasize that their risk and liquidation systems are built to handle the worst-case scenarios, ending with a nod to the community: "Stay safe, degens." (Degens, short for degenerates, is a playful term for high-risk crypto traders who thrive on volatility.)

You can check out the full tweet here.

This is particularly relevant for meme token traders, who often leverage platforms like Kamino to amp up their positions on volatile assets. Meme coins on Solana—think tokens inspired by internet culture, animals, or viral trends—are notorious for their extreme price swings. During events like this crash, leveraged positions can get wiped out in seconds if the underlying protocol isn't robust. Kamino's performance shows how solid DeFi infrastructure can act as a safety net, even when the market feels like it's in freefall.

What makes Kamino tick? As a leading lending and borrowing platform on Solana, it allows users to deposit assets as collateral and borrow others, often to trade or farm yields. But in turbulent times, the real test is the risk engine. Kamino's setup includes advanced monitoring and rapid liquidation mechanisms that ensure positions are closed out before they turn into losses for the protocol or its users. This isn't just tech jargon—it's what keeps your funds safer when meme coin hype turns into a rug pull or broader market panic.

For blockchain practitioners and meme enthusiasts alike, this event underscores a key lesson: not all DeFi protocols are created equal. While the crash was painful, with Solana's ecosystem taking a hit alongside others, Kamino's zero bad debt outcome highlights the importance of choosing platforms with battle-tested systems. As the team promised, an in-depth liquidation report is coming soon, which could offer even more insights into how they pulled this off.

If you're diving into meme tokens, consider integrating tools like Kamino for leverage, but always remember to manage your risks—use stop-losses, avoid over-leveraging, and stay informed on global events that could trigger volatility. The crypto world moves fast, and staying safe is the ultimate degen strategy.

Looking ahead, as markets recover, keep an eye on Solana's DeFi space. Protocols like Kamino are paving the way for more resilient trading, helping turn painful lessons into smarter plays for the next bull run.