Navigating Kamino’s JLP-USDT and liquidity products

JLP Market and Stablecoin Rates

Kamino Finance manages over $2 billion in total value locked on Solana. The protocol provides two distinct USDT lending options through the JLP market. The JLP market USDT lending product provides a 5.87% base APY, while its 30-day average return reached 6.78%. This specific market has a $10 million deposit limit. In contrast, the Kamino major market USDT lending product has a $100 million limit and a 5.2% base APY. The JLP market APY exceeds the major market APY when borrowing utilization stays below 84% to 86%, which is a specific mechanism that allows smaller deposits to access higher yields before the liquidity spreads too thin across the pool. Other stablecoin rates on Kamino include 6.2% for USDC, 6.5% for PYUSD, 3.6% for USDS, and 3.25% for FDUSD. For comparison, the Ethereum protocol Aave provides a 5.08% USDT deposit APY, and the BSC protocol Venus provides 7.11% for USDT. Jupiter Lend has surpassed Kamino in total deposits, holding $2.6 billion compared to Kamino’s $2.57 billion. In the Solana ecosystem, Kamino is the largest lending protocol, while Save supports 136 assets across 29 pools. Centralized exchanges like Bitget provide 3.5% APY, but these bonuses limit deposits to 500 or 1000 USDT.

JLP Pool and Multiply Mechanics

The high yields in the JLP market stem from the JLP Pool, which holds $1.8 billion in assets. This pool contains 47% SOL, 10% ETH, 11% WBTC, 28% USDC, and 4% USDT. The JLP Pool generates revenue from 75% of Jupiter perpetual contract opening and closing fees, price impact, and trading fees. The pool also acts as the counterparty for Jupiter perpetual traders on the Solana network. Kamino also has the JLP-USDT Multiply product, which reaches a 116.1% APY at 3.2x leverage. This product uses flash loans and eMode to loop USDT and JLP. Users earn a net yield if the JLP staking APY of 44.41% exceeds the USDT borrowing rate of 12.74%. High leverage carries significant risk because a sudden market move can push positions to their liquidation price. Does the current JLP staking APY of 44.41% always stay higher than the USDT borrowing rate?

Creator Vaults and KMNO Points

Kamino users earn KMNO points through three main activities. Lending in the JLP market earns 2x points, while JLP Multiply rewards users with up to 8x multipliers based on leverage. The protocol assigns 1 point per dollar daily to lending and liquidity products, but Multiply earns 3 points per dollar. Users can also access Creator Vaults to automate strategies using Raydium or Orca. These vaults have SOL-only, stablecoin, and mixed strategies. The mixed category includes Volatile-Volatile pairs like SOL and ETH, and Volatile-Stable pairs like a volatile token with a stablecoin. You should understand these categories before you select a strategy. Users set up vaults by selecting two tokens, a fee tier, a DEX, and a range preset. Fixed Range strategies involve providing liquidity within a specified range without rebalancing. Tracker strategies use a bot to monitor the vault and trigger rebalancing when prices hit limits. For liquidity, the PYUSD-USDT pair yields 8.8% over 7 days, while USDT-USDC pairs yield 2.73% on Meteora, 2.05% on Raydium, and 1.96% on Orca. KMNO air-drops can add between 0.3% and 1.5% to principal returns. Kamino uses time-weighted TVL and collateral health to prevent empty Sybil wallets from gaming the distribution. Kamino is the premier destination for yield on Solana.