Kamino Liquidity

Yield Aggregator

Kamino is an automated liquidity protocol built for concentrated liquidity DEXs. Kamino actively manages LP positions to maximize capital efficiency and yield.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Kamino provides liquidity management services for concentrated liquidity market makers (CLMMs) to maximize capital efficiency and yield through automation and auto-compounding of fees/rewards.
What we like less
The protocol is centrally controlled by the Hubble team with new vaults chosen by a quantitative analyst. In the future, Kamino plans to launch permissionless vaults so users can provide any token pairs.
What it means for you
Allows you to passively earn yield via automated concentrated liquidity strategies without having to personally manage the position.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $120.2M (Rank #72)
  • TVL Ranking by Yield Aggregator: #0
  • Blockchain: Solana
  • Chain TVL
    • Solana: $120.19M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Smart State audited in August 2022
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over six months reduces technical risk as smart contracts are moderately battle-tested
  • Bottom 80% by total value locked increases risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Solid controls to prevent oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about Kamino Liquidity

How Kamino works

Kamino is an automated liquidity solution built on concentrated liquidity DEXs. Retail users currently experience several issues when market making in these types of pools including greater impermanent loss risk, inefficiently set price ranges, manually compounding fees/rewards, and time consuming. Kamino solves these problems by actively managing the user's LP positions for them through advanced market making strategies, automated position rebalancing (to stay within range and earn fees), auto-compounding rewards, and improved user experience. Kamino has four types of pools: stable, pegged, non-pegged, and non-pegged to stable. Stable pools (stable-stable pairs) rarely move out of range so Kamino aims to minimize the amount of rebalances or keep it close to 0. Pegged pools have pairs that grow at a known pace, so Kamino aims to rebalance only when necessary. Non-pegged pools are expected to experience price divergence over time. These pools will be rebalanced to maintain optimized ranges. Non-pegged to stable pools will similarly be rebalanced as needed to retain optimized ranges. When a user deposits into a Kamino vault, they receive a fungible kToken in return that reflects their share of that vault. Each Kamino vault has its own distinct kToken.

How Kamino makes money

Kamino collects three types of fees: deposit, withdrawal, and performance. Deposit fees are charged as a percentage of the total amount deposited into a vault (deducted at the time of deposit). Withdrawal fees are a percentage of the total amount withdrawn from a vault (deducted at the time of withdrawal). Performance fees are collected on any profits made in the vault. This is not an upfront fee and is only charged when a user earns a profit. This fee varies between vaults, with more complex strategies generally having a slightly higher fee.

How you make money on Kamino

You earn money by providing liquidity to Kamino vaults and letting the algorithm optimize trading fees and auto-compound rewards. After providing liquidity, you can then deposit your LP positions (represented by kTokens) on Hubble to leverage up to 20x with USDH. The first kToken integration on Hubble is the kUSDH-USDC token.