- Kamino was originally created to offer users the easiest possible way of providing liquidity and earning yield on-chain.
- It has two “one-click” products—the Multiply Vaults and the Long/Short Vaults, and two “core primitives”—the Automated Liquidity Vaults and the Kamino Lend.
- It is involved in two upcoming airdrops—the potential native token launch of the platform and its partnership stake pool provider SolBlaze.
As 2024 approaches, more and more airdrops are coming. But the platform that will be discussed in this article is involved in two upcoming airdrops.
Table of Contents
Kamino Finance Introduction
Kamino Finance is a Solana-based protocol that claims to successfully combine lending, liquidity, and leverage into a single product.
In its paper, the developers emphasized that Kamino was originally created to offer users the easiest possible way of providing liquidity and earning yield on-chain.
“The protocol’s one-click, auto-compounding concentrated liquidity strategies quickly became the most popular LP products on Solana, and laid the foundation for what Kamino is now. Today, Kamino is a first-of-its-kind DeFi protocol that unifies Lending, Liquidity, and Leverage into a single, secure DeFi product suite,” its website read.
Kamino Finance Features
Kamino Finance has two “one-click” products—the Multiply Vaults and the Long/Short Vaults.
The Multiply Vault is a product that lets its users open a leverage position where they can increase their exposure to a yield-bearing asset by borrowing the underlying asset. It is enabled by two mechanisms within the Kamino Lend project.
To open a position in the Multiply Vault:
Step 1: Select a vault in the “Multiply” feature.
Step 2: Choose a token.
Step 3: Type in the specific amount.
Step 4: Type in the “multiply” amount.
Step 5: Go to the “Overview” tab.
Step 6: Check the simulation of the position and the estimated yield.
Step 7: Once satisfied with the simulation, confirm the transaction.
Meanwhile, the Long/Short Vault is similar to the perpetual futures trading of other exchanges.
To take a leveraged position in the Long/Short Vault:
Step 1: Go to the “Long/Short” feature.
Step 2: Choose the target position, whether it is Long or Short.
Step 3: Choose the asset pair to be traded.
Step 4: Type in the desired amount.
Step 5: Adjust the leverage ratio.
Step 6: Review the details of the position.
Step 7: Confirm the transaction.
Moreover, there are also two “core primitives” of Kamino Finance—the Automated Liquidity Vaults and the Kamino Lend.
The Automated Liquidity Vaults is the first product of the platform and is the project that enables the issuance of kTokens, which are yield-bearing LP tokens that are accepted as collateral in the Kamino Lend project.
To provide liquidity to different pools:
Step 1: Go to “Liquidity” feature.
Step 2: Choose the desired vault.
Step 3: Choose the “Deposit” button.
Step 4: Type in the desired amount.
Step 5: Check the annual percentage yield.
Step 6: Confirm the transaction.
Solana Concentrated Liquidity Layer | Kamino Finance
The Kamino Lend, on the other hand, is a “peer-to-pool borrowing primitive designed as foundational infrastructure to power complex financial products with leverage and automation, and as a decentralized matchmaker between borrowers and lenders.”
It is the project that powers the Multiple and Long/Short Vaults and enables the platform’s lending and borrowing product. It can also be used as a stand-alone borrow/lend market, as per the team.
To Lend or Borrow asset:
Step 1: Go to the “Borrow/Lend” feature.
Step 2: Choose the asset or token.
Step 3: Choose “Supply” if lending and “Borrow” if borrowing.
Step 4: Type in the desired amount.
Step 5: Check for the annual percentage yield.
Step 6: Confirm the transaction.
Kamino Finance Airdrop Guide
Like what was mentioned earlier, Kamino Finance is involved in two upcoming airdrops.
The first one is about its upcoming token launch. The token launch is said to be in line with the launch of Kamino Lend, which the developers consider the “underpin of Kamino 2.0.”
In a report by CoinDesk, it is revealed that the platform is planning to launch a points system that is a direct hint of an upcoming airdrop:
“‘Kamino’s about to start a points program,’ a contributor to the project with the screen name Marky said in a Twitter Spaces Thursday. This ‘could well account towards a future token.’”
To qualify, points are expected to be earned by using the Borrow/Lend and Liquidity features.
The second one is its partnership with SolBlaze, a stake pool provider that distributes stakes to more than 200 validators on the Solana network.
To join in this confirmed airdrop:
Step 1: Open your Phantom Wallet in your browser.
Step 2: Go to https://stake.solblaze.org/.
Step 3: Connect your wallet and stake $SOL.
Step 4: Wait for your wallet to receive bSOL tokens.
Step 5: Deposit these bSOL tokens in the bSOL-SOL liquidity pool in Kamino’s Liquidity feature.
Step 6: Wait for your portfolio in Kamino to receive bSOL-SOL.
Step 7: Go to the Lend/Borrow feature.
Step 8: Choose the bSOL-SOL pair and “Supply” all the bSOL-SOL tokens.
Step 9: On the same page, choose USDC and “Borrow” 70% of the available USDC.
Step 10: Go to https://www.mfi.gg/refer/1daaa0a4-44b7-4817-9ee6-dc05b0e428ae and log in.
Step 11: Go to the lending feature, and select “Supply.”
Step 12: Lend the $USDC to receive bSOL tokens.
Step 13: Go back to Kamino’s Lend/Borrow feature.
Step 14: Lend the received bSOL tokens.
This article is published on BitPinas: What is Kamino Finance? A Protocol Involved in Two Airdrops
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