1/ Massively excited to launch two new blue-chip vaults🪙
Both vaults enable users to stack 2 blue chips simultaneously, auto-compounding all fees & rewards from @orca_so while auto-rebalancing ranges as needed
Here's a quick deep dive🧵
2/ Kamino Vaults deploy liquidity into CLMM pools, auto-rebalances the deposit ranges to ensure optimized fee & reward earnings, while auto-compounding these earnings back into user positions
With these two new vaults, the auto-compounding is a massive value-add👇
3/ Essentially, fees from CLMMs are earned in the deposit token itself, which means that, in an stSOL - BTC vault, your yield is earned directly in stSOL and BTC respectively
You might see where this is going. By depositing into a vault, you keep stacking the two tokens
4/ And Kamino auto-compounds these fees, as well as the emissions rewards from the underlying pool, making it a one-click strategy for concentrated liquidity.
You might have seen us mention 'auto rebalancing of ranges', which constitute the second part of Kamino's automation👇
5/ Concentrated liquidity allows you to select the range you provide liquidity into. This means you can select tight price ranges, provide deeper liquidity, & earn more fees. BUT if the price moves, your liquidity may no longer earn optimal returns
Kamino automates this process
6/ However, in pools with assets that have distinct price movements, divergence loss may still take place. And this is the beauty of the two new blue-chip vaults🔥
7/ Because the prices of assets like SOL and ETH are correlated in their movement, divergence loss is typically much less likely.
This means that rebalancing and impermanence loss occurs less frequently, and you as a depositor simply accumulate both blue-chips over time🤝
8/ And, on top of the auto-compounded yields, both the mSOL - ETH and mSOL - BTC vaults earn staking yields from @MarinadeFinance and @LidoFinance respectively, meaning that you continue to earn yield on top of your accumulating stSOL and mSOL
9/ These are two exciting additions to Kamino's vault collection, and opens up a new opportunity for depositors that want to HODL and accumulate
If you haven't dipped your toes into Kamino, here's an ELI5 guide on how to start using the automated vaults:
this twitter thread.