In the latter half of last year, after the original Marinade liquidity gauges started, we launched Kamino Finance. Kamino integrates with Orca and Raydium CLMM dexes to offer vaults to get exposure to strategies on various Solana ecosystem tokens, such as LP’ing a given trading pair, which earns the depositor trading fees.
Kamino has a variety of vaults featuring mSOL already (and MNDE!), currently contributing around $1m of Kamino’s +$8m TVL. We’d like to add a Kamino gauge, so that MNDE holders can vote to direct MNDE to depositors who deploy into Kamino mSOL strategies. We feel having a Kamino gauge will contribute to strengthening mSOL liquidity in Solana, and providing further opportunities for mSOL holders to use their mSOL in Solana defi.
Can you tell me about the effectiveness of your liquidity? I am afraid that our opinion may be completely different, mainly due to the liquidity range.
hey. Sorry not sure I fully understand your comment, but can give a broad comment on effectiveness of liquidity.
Currently the Kamino mSOL vaults deploys into concentrated liquidity dexes, which have a high level of capital efficiency compared to classic AMMs. Taking a few random examples from Solana defi with mSOL-SOL, a concentrated liquidity pool trades around 110-150% of its TVL in daily volume, vs a classic AMM trading a daily volume of around 20% of its TVL. Thus perhaps this gives some insight into the effectiveness of liquidity deployed into Kamino, which is deployed into CLMM strategies which trade at high volumes relative to their tvl vs other kinds of dex.
Hope this helps, obviously the gauges are great as there are a variety of protocols doing different things, and the community can vote on what they’re interested in supporting.
mSOL/SOL is around 1.105864 currently and the inverse ratio is 0.904270 and if the info on your website is true, that means over 1/3 of the liquidity your provide is sitting idle right now and that’s why I think it’s ineffective. Why not base the vault on Orca which gives more fine grained controls on the range (10bp ticks vs 1bp ticks)?
Also (unrelated to effectiveness), the vault charges a withdrawal fee which may be a deterrent to deposits.
Kamino has strategies for mSOL across both Orca and Raydium. If you’re so inclined you can check out our SDK and run your own strategy to maximize capital efficiency. Feel free to get in touch to productize it too.
Yeah the vault has a withdrawl fee and a performance fee. These are transparent and users or potential users can decide whether to use the protocol or not, given their judegement of value-add.