How to Earn Yield on Solana With Kamino Finance

What's up guys? Today we're talking about Salana Defi and we're going to focus on Camino Finance. How to earn more yield on your Salana and other

tokens like JLP or stable coins. Salana

DeFi has been heating up. So if you hold a ton of Salana and you are bullish on Salana for the next 6 to 12 months or the next 3 to four years, then it's a

great way to earn some yield on Salana to offset the high inflation rate that Salana has. And before I dive in, my

Salana has. And before I dive in, my name is Richard. This is currently my yield farming portfolio. I focus mainly on yield farming concentrated liquidity

pools. You can see I have a pretty good

pools. You can see I have a pretty good track record here. Up almost $12,000 compared to holding with my positions.

If you add my closed positions, I'm up roughly $43,000.

This channel is mainly about yield farming and earning passive income through crypto. So, this video is not

through crypto. So, this video is not really about concentrated liquidity pools, but it's about lending and borrowing. It's still a very important

borrowing. It's still a very important tool to learn as a DeFi investor. And

just a quick disclaimer, none of this is financial advice. Be sure to do your own

financial advice. Be sure to do your own research before you invest into these protocols. So, right off the bat here,

protocols. So, right off the bat here, if we click on this earn tab, you can see this lending section where you could deposit your tokens into a vault and

earn a nice APY. If we click Salana here, just by depositing your Salana into this vault, you can see you would be earning a roughly 8 to 9% supply APY

here. And you can see like the

here. And you can see like the historical APY, it fluctuates. And

basically for this type of vault, what it does is there is a fund manager here.

In this case, it's MEV Capital that is managing your lending positions across different markets over here. And you can see like the breakdown here to see where

they're getting their APY. And what's

really nice is there's zero management fee over here. So they're getting the best rate possible for you with very minimal management on your end. And

there's different managers here. For

example, this Alice Lab, right? They

lend out your soul in different markets.

And once again, 0% management fee. And

this one has a pretty high supply APY in its lifetime, but over the last 90 days, it's a little bit lower than what we were just looking at. So, that's the

first part. You could deposit into a

first part. You could deposit into a vault and earn a 5 to 10% APY on your Salana and roughly 5% on your stable coins as well. But one of the main

features I like about Camino Finance is this multiply feature. We can see here with the rewards, you could earn up to

25% APY. And on the lower end, you can

25% APY. And on the lower end, you can see this 15% APY. So if we click onto here, what this multiply function does

is it takes your M soul, which is a liquid staking token for Salana, use it as collateral. So you're lending it out

as collateral. So you're lending it out and then you're borrowing Salana as the debt and then looping it. Looping

meaning that I'm converting more Salana into M soul and then depositing again with the amount of Salana that I borrowed and repeating that process over

time. So you could basically loop it

time. So you could basically loop it once or do it, you know, up to 9.5 times over here. And the more you loop, the

over here. And the more you loop, the higher the APY you're going to be able to get. So if I go to this my position

to get. So if I go to this my position tab, if I deposit 100 m soul for example, you can see this APY here based

on the multiply tab. If I went for five loops, you can see the APY is 15%. If I

go for max loop, the APY is 24%. And

again, it's using this M soul, right? If

we pull up M soul on Gecko terminal, you can see MS soul is gaining its value against Salana. This is priced in

against Salana. This is priced in Salana. So if you bought Msoul with your

Salana. So if you bought Msoul with your Salana roughly 1 year ago compared to now you would make a gain of roughly 8 point something% on your Salana. Right?

This is why people buy liquid staking tokens is that you don't have to stake your Salana manually and the value acrru over time similar to tokens like wrap

stake ETH. So that's M soul and then

stake ETH. So that's M soul and then when you loop it you get additional return right cuz you're borrowing Salana and then getting more moul which is

which has like an implied APY of roughly 8.3% like what we were just looking at.

So if we zoom out all the way to as much as possible, this multiply function started in April 29th. And usually the return you generate is this blue area

here that is above this orange line. So

if the orange line is above the blue line, you're actually making a loss because if you look at the MO APY, it's lower than your Salana borrowing cost,

right? when the borrowing cost is more

right? when the borrowing cost is more than the yield you generate from the collateral then you would be at a net loss but if you believe that the supply

APY would stay under 8% then this position would be profitable over time and the higher the multiplier the the more gains you would make but also the

more loss you would make if the borrow APY spikes really hard and stays above 8% for a very long time. So there is that main risk here. If you click on

this info here, you can see you could get liquidated if the borrow interest rate is higher than the collateral token growth rate for a sustained period of

time. So exactly what I was explaining,

time. So exactly what I was explaining, right? And there's actually no DPEG risk

right? And there's actually no DPEG risk when it comes with Camino Finance.

That's why it's really really good. You

could see that Camino has its own oracle that uses the staking rate that the token is generating rather than the market price. Meaning that you would not

market price. Meaning that you would not be liquidated. If you see this huge wick

be liquidated. If you see this huge wick down here, normally you would be liquidated if the normal oracle that determines the price is based on the

actual price. But again, Camino Finance

actual price. But again, Camino Finance use the staking rate, the APY that the liquid staking protocol is able to generate rather than the market price.

So, it's much safer than a you know, normal market price loop. If you're

looping assets with oracles that are using market price, it could be very easily liquidated. You can see here it

easily liquidated. You can see here it removes the risk of liquidation due to price DPEGs. If a DPEG occurs, the LST

price DPEGs. If a DPEG occurs, the LST positions such as multiply for example would not be affected. But the key risk to keep in mind that if these LST

platform do suffer a smart contract exploit, these positions would still be a risk. So you have to do research on

a risk. So you have to do research on MSOL, right? In this case, it's the

MSOL, right? In this case, it's the Marinate stake soul to see if they're properly audited and if you trust them.

in case their protocol gets hacked, then you would lose your assets just as if you were holding MSOL. So, that's

something to keep in mind. And with

these vaults, you typically don't want to deposit everything in here. Like with

any other investment, you have to diversify, especially because the interest rate for each vault might be different. Right? If we go back here and

different. Right? If we go back here and just filter by the soul loop, this is on the marinade market. But if we go on to this M soul on the main market here, you

can see the APY is different from what we were just looking at over one year, you can see that the M soul APY has been historically greater than the sole

borrow APY. And then when there's a huge

borrow APY. And then when there's a huge difference here, that's where you can make a ton of APY with this multiply function. So really great here. And the

function. So really great here. And the

way you do it again is let's say you have like a 100 soul. You might put like 10 soul here, 10 soul there, right? And

then like spread them out over these markets and make sure you're researching like mol soul and the underlying assets.

You want to make sure that you're using legitimate underlying assets, right? So

that's the first way you guys could earn much more APY with your Salana. Very

simple and straightforward. You don't

have to manually do anything. Camino

Finance does it for you in one click.

And you could use lower leverage as well. Right? If we go back to the MSOL

well. Right? If we go back to the MSOL main market, if I go to this my position tab again, if I deposit, let's say 10 and then at 1% multiply is basically

8.36%.

Because we're not really borrowing any Salana, right? You could crank it up.

Salana, right? You could crank it up.

Let's say if you only want to have low leverage, it's 12% APY. So, still better than just purely holding those liquid staking tokens. But again, with this

staking tokens. But again, with this multiply function, as long as the Salana borrow rate doesn't spike too hard over a very long period of time, it should be

safe having higher leverage. And the

next thing I want to look at is the stable loops. You could do the same

stable loops. You could do the same exact thing like what you were doing with Salana, but now we're looping stable coins together. So if we look at syrup USDC here, you can see the

underlying APY which is really important right. So this is pretty new and

right. So this is pretty new and basically what we want to look at is the syrup USDC APY if it's going to be able

to sustain above the USDG borrow rate.

And you guys could close out of these positions at any time. Let's say the borrow rate just doesn't come down below this blue line. You could exit this vault and deposit into other vaults.

Syrup USDC is similar to MSOL where the yield automatically compounds into the token. And if we're looping this, then

token. And if we're looping this, then you could generate a roughly 21% APY.

And this is with incentives. So without

the incentives, maybe the APY would drop to 14%. Again, a little bit more

to 14%. Again, a little bit more interest rate risk. If this underlying assets spike up in interest rate, then you would be making less APY or be at a

loss even. So do keep that in mind. And

loss even. So do keep that in mind. And

again, we want to research the underlying assets. Make sure that it's

underlying assets. Make sure that it's something safe and you also want to diversify your portfolio. And the last thing I want to look at is this JLP loop. It works the same way. You're

loop. It works the same way. You're

depositing JLP and then you're borrowing these underlying assets. And as long as the JP APY is greater than the borrow assets, then you would be making money.

But with this, you got to be a little bit more careful and use less leverage because if we pull up the JP price, it actually fluctuates. It's absolutely not

actually fluctuates. It's absolutely not stable, right? So, what exactly is JLP?

stable, right? So, what exactly is JLP?

If we go to Jupiter Per, it's a per trading platform that you could trade stuff like Salana, Ethereum, and Wrap Bitcoin on chain. And we click on this

earn tab here. You would see this JLP pool. So this pool is made up of these

pool. So this pool is made up of these assets, right? Salana, Ethereum, rap,

assets, right? Salana, Ethereum, rap, Bitcoin, USDC, USDT. These assets are what the traders use to basically trade with. If those traders make a profit,

with. If those traders make a profit, then the assets will be paid out using this pool. And then if those traders

this pool. And then if those traders make a loss, then those assets would come into this pool. So that's the first thing to consider. And the other thing to think about is that these are the

underlying assets. Ethereum and Bitcoin

underlying assets. Ethereum and Bitcoin only comes up to roughly 21% of the pool. Almost half of it is in Salana and

pool. Almost half of it is in Salana and 31% of it is in USDC. So JLP price fluctuates with Salana price the most

because it's the main underlying asset.

But at the same time because it has a 31% allocation to USDC, it's much less volatile than Salana. If we look at the

huge draw down that we saw on Salana in the last few months compared to JLP JLP had a roughly 36% draw down right compared to Salana if we measure from

the high to low in the same time period here you can see the draw down is roughly 67%. So much more stable because

roughly 67%. So much more stable because again you have these other assets as well as stable coins and also you get 75% of the fees that is generated from

this per platform. It's used directly to buy into this JLP token and that's the APY here. This is purely based on the

APY here. This is purely based on the trading fee. It's not based on the

trading fee. It's not based on the trader profit and loss. And if you assume that traders either break even on average or make a net loss on average,

then you will see additional profits, right? But that's the minimum amount

right? But that's the minimum amount that you could expect. And if we pull up Dune Analytics here for Jupiter Per, you could scroll down and see the fees. The

weekly fees has been growing over time.

So that's really nice to see. So JLP is a pretty good investment in my opinion.

you earn roughly 16% APY and then you also get some asset appreciation. But

like investing into any crypto token, the best time to invest is when the prices are low, right? If JLP is trading all the way at $3.37,

for example, and I want to earn some nice yield, then I could basically invest into JLP with my stable coins.

And and let's hop back to the multiply function. So now that you know what the

function. So now that you know what the JP token is, we could look at this JP loop here. So let's click on one of

loop here. So let's click on one of them. For example, this USDT one.

them. For example, this USDT one.

Sometimes the data doesn't load, but that's okay. We can look at our yield by

that's okay. We can look at our yield by going to this my position tab. Let's say

you want to do 1,00 JLP. You multiply

that by, let's say, 2.5. Then your net APY would be 28.55%.

Again, this doesn't really account for like the price fluctuation of JLP. And

if you connect your wallet, you could see exactly where you would be liquidated. You could deposit with JP or

liquidated. You could deposit with JP or USDT. Let's say I deposit 1,000 USDT,

USDT. Let's say I deposit 1,000 USDT, right? I have exposure to this amount of

right? I have exposure to this amount of JLP, roughly 3K. If my leverage is at this amount, let's say it's 3x leverage,

right? Then my liquidation price is at

right? Then my liquidation price is at 3.6. So 3.6 6. If we look back at our

3.6. So 3.6 6. If we look back at our chart, you could definitely get liquidated, right? If the market

liquidated, right? If the market condition is really bad. So then that's a higher risk leverage. But if we dial that down to let's say like 1.5, then my

liquidation price is much lower. I would

be generating 20% APY on my capital. And

if I believe that Salana's price is going to appreciate over time, then JLP's price would most likely appreciate over time as well. And if I bump that

leverage up to two again, you can see the liquidation price 2x leverage on this is probably still safe. And you

could bump it basically up to 24% APY.

So it depends on if you want to worry about liquidation or not. If you don't use like 1.5 or just no leverage, right?

Just buy JP and hold if you think that's a solid asset. And again, if JLP's price appreciate over time, you're making those gains on top of this 20% APY. So,

that's really nice, especially if you buy JLP or deposit into this vault when the prices are really low. And since

this data doesn't load, we don't have to worry about this. We could go to this market section. And if we just CtrlF and

market section. And if we just CtrlF and then type JLP, it will pop down to this JLP market here. So once I have this, I

could take a look at the supply APY of the underlying assets, right? The JLP

multiply function has exposure to all of these tokens. For example, this PYUSD. I

these tokens. For example, this PYUSD. I

could go in and take a look over the last 30 days, supply APY has been fluctuating here, but the 30 days average is only 4.45%.

90day is only 4.69%.

But a longer time horizon is 7.1%. Zoom

out over one year here. Back here the supply APY was much greater. Let's

compare that to USDC for example over one year. So slightly lower supply APY.

one year. So slightly lower supply APY.

And over the last 180 days, it's lower as well. And let's look at USDT over one

as well. And let's look at USDT over one year. Even lower than the USDC and the

year. Even lower than the USDC and the PYUSD we looked at. Right. Lastly, the

USDG over one year also relatively low.

So, the strategy might be, let's say you have $10,000. Since the USDT and USDG

have $10,000. Since the USDT and USDG interest rate is lower on the longer time horizon, then I could go heavier on those two vaults, maybe 70 to 80% of my

capital there and the rest in the PYUSD and the USDC market. So with this vault, you still want to diversify once again to prevent like a spike of interest rate

in one of these tokens that could potentially put you at a loss, right?

And if you guys just want to lend out your tokens, you could go to this market tab and look at all of these assets, right? For example, you could earn 7% on

right? For example, you could earn 7% on your USDG, USDS. It even supports Eurocoin here. And you could borrow

Eurocoin here. And you could borrow assets as well, right? If you want to long Salana for example, you could deposit Salana, earn a nice APY and then

borrow some other tokens like Eurocoin and USDG which comes with like some rewards to offset the borrow APY and you could basically get paid to long Salana

rather than paying a funding fee in a per trading platform. So I hope that was helpful guys. If you guys want to learn

helpful guys. If you guys want to learn more about DeFi and yield farming, be sure to check out my other videos. I

talk a lot about concentrated liquidity pools. It's also another great way to

pools. It's also another great way to diversify your DeFi earnings and take a little bit more risk to make more return. If you want to know how to do it

return. If you want to know how to do it safely and make consistent gains, be sure to check out these videos and hit the notification bell if you want to be notified whenever I release a new video.

Thank you once again for taking the time to watch the video. I'll catch you guys next time.