Cracking the code of Solana DeFi — @kamino

Paris, France
Joined April 2021
Solar ☀️ retweeted
META is now trading on Phoenix
METADAO perpetuals are first on Phoenix. @MetaDAOProject runs fundraising and governance on Solana through futarchy. Proposals pass or fail on market prices, not token votes. phoenix.trade/METADAO
5
4
73
3,506
Solar ☀️ retweeted
Come build the future of onchain finance with Kamino. We’re hiring across engineering, product, business development, marketing, legal, and operations. Explore open positions: jobs.ashbyhq.com/kamino
10
9
4
123
30,202
You may know that Kamino just brought on a fintech/Wall Street veteran as CEO. You may even know that Michael Weisz founded Yieldstreet, an early fintech winner, but you have no idea just how good he is until you spend an hour listening to him speak.
When I heard Kamino had brought on a fintech founder as CEO, I knew had to bring him on. @WeiszM did not disappoint. Great podcast about onchain collateral, Kamino, the $KMNO token, fintech vs crypto, tokens vs equity, his comp package, and more.
1
5
33
2,759
Solar ☀️ retweeted
Loop it on Kamino (soon)
Just opened a 6-figure position in $eHYUSD (@hylo_so's yield-bearing asset) 20%+ APY, and imo the best risk/reward on @solana right now. I spent hours reading the docs & talking to the team to understand the yield and what could go wrong. Here are my personal notes ⤵️ 1) Quick recap about Hylo Hylo is best known for its leveraged tokens: xSOL, xHYPE and xBTC. They give you roughly 2–3x exposure without liquidations. So if SOL goes up 10%, xSOL would gain around 20–30%, depending on its leverage at the time. That works both ways: losses are amplified too. 2) What's $eHYUSD and where does the yield come from? You can stake hyUSD, Hylo's stablecoin, and receive eHYUSD to earn a share of the yield generated by the protocol basically: • xSOL holders give up the staking rewards on the SOL backing their positions in exchange for leverage. • xBTC and xHYPE holders pay borrow charges for theirs. • xSOL holders might also pay extra borrow charges, specifically when liquidity is needed (which is the case right now) Those revenues are shared with eHYUSD holders and compound automatically. 3) APY was around 9%, why has it recently jumped to 20%+? As SOL and BTC went up, xSOL and xBTC holders made money, but the leverage on their positions came down. They're now at 2.20x and 2.48x, both below Hylo's 2.54x lower boundary. To bring that leverage back up, Hylo needs to buy more SOL and BTC, which means attracting more stablecoin deposits. So holders pay more for their leverage, and part of that goes to eHYUSD holders. For example, xSOL holders currently pay ~5% in borrow charges while also giving up the staking yield on the SOL behind their positions. Those staking rewards and extra borrow charges flow into the Earn Pool alongside revenue from the other markets, bringing the yield we receive on eHYUSD to ~21% APY. Once leverage is back in range, those extra charges come down. I'd expect APY to move closer to 10–15%, depending on deposits and market conditions. 4) What could go wrong? In V1, the Stability Pool could convert your hyUSD into xSOL during a selloff, leaving you exposed to further SOL losses. V2 instead starts selling collateral into USDC when leverage goes above ~3.86x, reducing exposure as the market falls. But if prices crash faster than the protocol can rebalance and a pool becomes under collateralized, the Earn Pool can be used to cover the shortfall. That means losing part of your deposit, even if hyUSD keeps its peg. There are also smart contract and oracle risks of course. 5) What to do with your $eHYUSD? - Hold it in your wallet and let the yield compound. $eHYUSD started at $1 and is now worth ~$1.48 as interest has built up. - Explore tranching markets on @ExponentFinance. I put a small amount into jrEHYUSD, currently yielding ~28%, but it takes losses first if eHYUSD drops, so the downside is much bigger too. - Loop it on @kamino (soon). Let me know if you have any questions, I'll be more than happy to answer Note: I'm a seed investor in @hylo_so
2
1
11
722
Solar ☀️ retweeted
Great read!
Just opened a 6-figure position in $eHYUSD (@hylo_so's yield-bearing asset) 20%+ APY, and imo the best risk/reward on @solana right now. I spent hours reading the docs & talking to the team to understand the yield and what could go wrong. Here are my personal notes ⤵️ 1) Quick recap about Hylo Hylo is best known for its leveraged tokens: xSOL, xHYPE and xBTC. They give you roughly 2–3x exposure without liquidations. So if SOL goes up 10%, xSOL would gain around 20–30%, depending on its leverage at the time. That works both ways: losses are amplified too. 2) What's $eHYUSD and where does the yield come from? You can stake hyUSD, Hylo's stablecoin, and receive eHYUSD to earn a share of the yield generated by the protocol basically: • xSOL holders give up the staking rewards on the SOL backing their positions in exchange for leverage. • xBTC and xHYPE holders pay borrow charges for theirs. • xSOL holders might also pay extra borrow charges, specifically when liquidity is needed (which is the case right now) Those revenues are shared with eHYUSD holders and compound automatically. 3) APY was around 9%, why has it recently jumped to 20%+? As SOL and BTC went up, xSOL and xBTC holders made money, but the leverage on their positions came down. They're now at 2.20x and 2.48x, both below Hylo's 2.54x lower boundary. To bring that leverage back up, Hylo needs to buy more SOL and BTC, which means attracting more stablecoin deposits. So holders pay more for their leverage, and part of that goes to eHYUSD holders. For example, xSOL holders currently pay ~5% in borrow charges while also giving up the staking yield on the SOL behind their positions. Those staking rewards and extra borrow charges flow into the Earn Pool alongside revenue from the other markets, bringing the yield we receive on eHYUSD to ~21% APY. Once leverage is back in range, those extra charges come down. I'd expect APY to move closer to 10–15%, depending on deposits and market conditions. 4) What could go wrong? In V1, the Stability Pool could convert your hyUSD into xSOL during a selloff, leaving you exposed to further SOL losses. V2 instead starts selling collateral into USDC when leverage goes above ~3.86x, reducing exposure as the market falls. But if prices crash faster than the protocol can rebalance and a pool becomes under collateralized, the Earn Pool can be used to cover the shortfall. That means losing part of your deposit, even if hyUSD keeps its peg. There are also smart contract and oracle risks of course. 5) What to do with your $eHYUSD? - Hold it in your wallet and let the yield compound. $eHYUSD started at $1 and is now worth ~$1.48 as interest has built up. - Explore tranching markets on @ExponentFinance. I put a small amount into jrEHYUSD, currently yielding ~28%, but it takes losses first if eHYUSD drops, so the downside is much bigger too. - Loop it on @kamino (soon). Let me know if you have any questions, I'll be more than happy to answer Note: I'm a seed investor in @hylo_so
1
23
1,359
Kamino will be one of the big winners in tokenized equities - not only this year (already a winner on core KPIs) but over the next 3 / 5 / 10 years. You don't believe me yet (based on price) so I am posting this to QT it when you do.
Kamino is going to melt your face this cycle
12
5
1
72
85,173
Solar ☀️ retweeted
$ONyc takes the top spot on Kamino Swap The @onrefinance market just passed $300M, now the largest isolated RWA market on Solana ZEC, HYPE & PUMP complete the top 5, all having their own markets, and usable as collateral Trade all five with Zero fees and Zero route bias
2
3
1
19
647
Solar ☀️ retweeted
Introducing xStocks Vaults on @krakenfx, powered by Kamino, @veda_labs, and @SentoraHQ. Holders can now deposit their xStocks into vaults on Kraken and earn yield denominated directly in that asset, growing their exposure over time. Now live for SPYx, QQQx, and NVDAx, powered by @chainlink CCIP & Data Streams.
34
38
15
283
76,813
Solar ☀️ retweeted
There has been an insane amount of growth for $ZEC on Solana. Total 7-day volume: $518.5M Current holder count: 68,300+ holders Total onchain market liquidity: ~$11M And now you can put it to work on the largest credit market on Solana.
Access ZEC-backed credit on Solana. The ZCASH Market on Kamino has grown to over $2M, giving ZEC holders access to USDC liquidity against $ZEC in a fully isolated market curated by @AllezLabs.
4
2
15
1,432
Solar ☀️ retweeted
Over $50M in deposits into Kamino Vaults through @BinanceWallet in less than 24 hours. Bringing Solana’s onchain markets to millions of users globally.
22
19
9
153
35,583
Solar ☀️ retweeted
When designing a fixed rates product for on chain finance, two initial questions you need to ask are: 1. Why none of the existing fixed rates product currently work? 2. Inversely: what makes floating rate work? The answers are: * Lenders do not want the extra decision complexity or management overhead - which is the same reason why one-click earn programs will remain popular * Lenders want immediate liquidity aka no or little duration - they don’t want to be trapped for 6 months - which is why the pooled utilisation model works - the unutilised funds are immediate exit liquidity — What solves this duration / liquidity / management complexity is the simple interface of a vault for the lenders. Curators will absorb all the fixed rates decisions and mix durations to give as much of the instant liquidity experience of open-term lending. And they should get paid for it. — (some of the existing models are outright flawed with no liquidation mechanism or 1d long fixed term, that are not even worth discussing - this is obviously a complex product so no wonder nobody got it right yet and many had such bad takes on it)
Introducing Kamino Fixed Rates The definitive architecture for fixed-term, fixed-rate credit on-chain. Now live in private beta. Public launch in Q3 2026 Read the light paper: kamino.com/fixed-rates-light…
3
11
2
60
14,164
Solar ☀️ retweeted
Introducing Kamino Fixed Rates The definitive architecture for fixed-term, fixed-rate credit on-chain. Now live in private beta. Public launch in Q3 2026 Read the light paper: kamino.com/fixed-rates-light…
30
47
39
375
196,778
Solar ☀️ retweeted
Plz. Report this indian
Replying to @Ellaxmf @veH0rny
C'est mon frère, mais malheureusement, il a le VIH
9
2
1
144
20,658
Solar ☀️ retweeted
The Institutional vault will keep growing because it achieves a very fine balance of risk and reward: * Mostly off chain so the negative discount usually applied to on chain stuff goes down significantly * Mostly delta neutral: the loan is collateralised by escrowed cash waiting for trade delivery, on an already insured deal * Mostly liquid: 10% on chain liquidity sleeve with the rest of the funds locked in 3m long deals. You get paid ~7.5% to take on, what in my opinion is, good risk. Also, an extremely cool thing that was shipped with this vault is the Withdrawal queue that is FIFO ordered - essentially if there is no exit liquidity, you can submit a ticket and you will be filled the moment some appears, automatically, without having to come and check daily.
Institutional Commodity Yield Vault has surpassed $5M in deposits. Real-world commodity trade financing continues to scale on Kamino.
2
8
27
2,318
Solar ☀️ retweeted
Everyone is too busy PvPing trading apps to see the real growth opportunity coming to Solana
Institutional Commodity Yield Vault has surpassed $5M in deposits. Real-world commodity trade financing continues to scale on Kamino.
5
1
18
1,514
Solar ☀️ retweeted
Titan Pro is coming Trading on @solana should feel like trading on a CEX. Spot execution is already there when routing via aggregators like @Titan_Exchange, but there is still a UI gap Titan Pro bridges that gap so it feels like you are trading on Binance while on chain Reply/dm for early testing access!
128
35
17
396
53,621
Solar ☀️ retweeted
Institutional Commodity Yield brings one of the world's largest institutional credit markets on-chain. Commodity traders require short-term working capital to move physical goods through global supply chains. Before financing is provided, the purchase and onward sale are already agreed at fixed prices. Both contracts are signed at fixed prices before financing is provided, so the trade is structured around the trader's commercial margin from the outset; the trader still needs capital to fund the purchase and complete the transaction. Institutional Commodity Yield provides that financing through commodity loans structured to be fully collateralized. As the trade settles, the borrower is contracted to repay the loan plus interest; the trader realizes the commercial profit, while the interest accrues to the vault as yield. As loans mature, principal is redeployed into new qualifying loans, creating a rolling cycle of financing backed by recurring demand for commodity trade.
17
9
3
96
6,098
Solar ☀️ retweeted
I want to work at MetaDAO It's the only opportunity I see in this industry, this cycle, that has a 100x outcome I will be working at MetaDAO in a year
28
7
4
189
34,428
Solar ☀️ retweeted
On chain infra, off chain yield. Most funds sit off chain, in custody, while only the liquidity sleeve stays on chain on the same Kamino smart contracts. Yield backed by commodities trade financing, earning around 8% with capacity to grow to 9 fig without yield dilution. Where the yield comes from: funds are lent to commodity traders to finance fully collateralized, insured commodity trades (e.g. buying physical copper), typically with 1:1 cash held in escrow, and repaid with interest once the buyer accepts delivery and settles. This is brand new for Solana, DeFi, and unique in its risk profile. Dig into the docs, shoot me a DM if questions.
Introducing Kamino Institutional Yield. Purpose-built on-chain vault infrastructure connecting real-world, institutional credit markets with on-chain users. Commodity Yield, the first vault built on this infrastructure, is now live. Initial deposit capacity: $25M USDC.
7
5
38
3,267
Solar ☀️ retweeted
Introducing Kamino Institutional Yield. Purpose-built on-chain vault infrastructure connecting real-world, institutional credit markets with on-chain users. Commodity Yield, the first vault built on this infrastructure, is now live. Initial deposit capacity: $25M USDC.
42
30
25
292
158,427