Kamino LP Corner #7

BbyA...nMtW
14 Sept 2024
168

If you're unfamiliar with Kamino Finance see my explainer post here https://www.bulbapp.io/p/34c42de2-547e-47a8-b72d-9b8b61c6fde2/use-cases-for-kamino-finance?s_id=2936eabf-734f-4bf5-9069-4a3ef2173b8c


My process is pretty simple:

  • Look the analytics on Kamino for each LP
  • Look at the token prices on CoinGecko / CMC


Remember always: An LP IS a trade. It's a different type of trade as you're buying position on yield curve and you're collecting transaction fees, but it's still a trade so the normal assessments as goes price applies.

Generally we're looking over a 3 week time period in the LP. Each period we'll close out our positions entirely and start afresh with new ones. Obviously if you're doing this yourself you'd want to keep some positions much longer than that but we're looking to make this educational and as accessible as possible so we're coming from a start fresh approach each time.


Let's dive into the analysis!




How did we do from last time?

Not great. The market has gone sideways and down mostly. The lack of trading fees has exposed us more to the price action.
That said, price action is heading in the right direction of late.





The candidates

Our thesis from last time was Solana breakpoint would raise all boats Solana defi.
And... that's still our thesis TBH. It's just taken longer than we expected to see the news from that impact the market. Given Breakpoint is a still a week away, we're going to stick with Solana defi.

Both Zeta and Drift given both have teased significant announcements at Breakpoint.





And Jito's restaking products continue to build momentum.





KMNO-JUPSOL

https://app.kamino.finance/liquidity/2YPw4UMeys9eKL9FEabDn3D3LxFNAfJspHiH3n2Wpmc4



JUP-$WEN

https://app.kamino.finance/liquidity/8CsQpQrgmN68wxNRw1G9uejmAWYpAjCg9XBpr2KE7ESV



MNDE-mSOL

https://app.kamino.finance/liquidity/FAVSpnZsNWKTnPmn4qPttZjT6MiWyCQjUVzDuf6pLcTB


ZEX-JitoSOL

https://app.kamino.finance/liquidity/5CdjPu8AZtGW92q8eB3Mx52cAPReQsFJT5NmUQwMLga9


DRIFT-JitoSOL

https://app.kamino.finance/liquidity/AswrnRqNR4UXU93Bfgmjr313zf5snCNQwpSVT36HBJM6


JTO-JitoSOL

https://app.kamino.finance/liquidity/8DRToyNBUTR4MxqkKAP49s9z1JhotQWy3rMQKEw1HHdu




Token prices

As we run into Breakpoint we can see all the defi protocols are starting to pick up.
ZEX and DRIFT particularly given the expected announcements from both teams and their current roadmaps.
KMNO has seen strong growth of late as well.
Of the large defi players JTO, MNDE and RAY haven't seen as much of a reaction but given their product offerings are more mature compared to the others that is maybe to be expected going into a conference.
Though they all could still surprise us. Especially JTO given their recent foray into the restaking world.







To LP or not to LP

Here's the positions we went with.

KMNO has been on a tear of late due to their partnership with PayPal. There's a decent chance they announce something as big at Breakpoint

DRIFT and ZEX both are expected to announce new projects. In the case ZEX they've already revealed in the most recent community call they'll be demoing their L2 at Breakpoint during their presentation.

JTO already launched restaking a while ago but for a product like this it's all about who then builds with it and what they build. Given the Jito teams' track record you wouldn't bet against them announcing something big at Breakpoint. Maybe even in conjunction with one or more of the above protocols.



What's new at Kamino?

Let's check out what's been happening at Kamino. Don't forget to give them a follow, a like and share!













Over to you!

Where are you LP-ing at present? Kamino?
Got some insights to share? Let me know in the comments.

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