Kamino Finance x Raydium: Launch of new well-managed vaults

What can only be called one of the best developments, it has been learned that Kamino Finance and Raydium have extended their hands for a partnership to better provide trading experience on Solana DEX. The announcement was made by Kamino through an official Twitter handle and a blog post.

Per the announcement, a total of four Radydium vaults have gone live at the moment, giving users an opportunity to earn 64,000 RAY rewards over a period of four weeks.

The four vaults that have initially gone live are:-

  • $mSOL – $USDC
  • $mSOL – $SOL
  • $RAY – $SOL
  • $stSOL – $ETH

$RAY rewards that are planned to be rolled out will have an equal portion coming from both sides, namely Kamino and Raydium.

Some more elements coming on board with the partnership are auto-rebalancing, auto-compounding, and actively managed vaults. Raydium brings CLMM a chance to have larger capital efficiency. Plus, LPs will be able to choose from a wide deposit range to deliver higher yields on them. CLMM also comes with the capacity to give out the better capital concentration on a higher side rather.

Kamino’s partnership with Raydium enables the latter to automate the entire process. Until now, the manual process required LPS to actively manage the vault by monitoring the yield and choosing a reliable range. Kamino now brings advanced quantitative modeling to identify the optimal deposit range for the purpose of finding a perfect balance between passive range management and earning the maximum yield.

LPs on Raydium would now find it easy since the solution has transformed into a one-click model. They only have to click deposit, following which Kamino Finance comes into the picture and manages liquidity provisions. Kamino handles three tasks simultaneously – optimal yield, handling ranges, and rebalancing at the right time.

Auto-Compounding makes a more productive contribution to the partnership. Yields earned are automatically compounded in the position, meaning LPs are able to earn yield continuously without a break. Needless to say, there is no manual procedure involved following the partnership between Kamoni Finance and Raydium.

Kamino achieves auto-compounding in three simple steps that start with harvesting all yields from rewards and fees. This is followed by the second step, where tokens are automatically swapped, leading to the third & final step, where the tokens are deposited again into the position.

All LPs have to do is accumulate their rewards. The integration and the partnership between the two adds value to projects as well by assisting them at the time when they need to fuel liquidity into their digital assets.

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Setting up a pool is an open segment, courtesy of the permissionless nature of Raydium; however, they do need access to Raydium CLMM with their incentives. The partnership has been formed on Solana to build Kamino vaults on CLMM DEX of Raydium. Earning dual RAY rewards is available for a limited time, after which it would cease to roll out that specific benefit.

Kamino has expressed its excitement to work with Raydium DEX to ensure that the members of the DeFi community of Solana have access to the most efficient trading environment on the network.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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