Kamino LP Corner #8
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?
Whole lotta 'meh' pretty much sums up how we've done. Apart from a bigger dip from ZEX, everything else is pretty much at evens which means we've gone backwards considering we have been collecting yield.
Our Breakpoint thesis was correct.. to a point. We did see positive price action but it was short lived and overall market sentiment completely cancelled it out.
The best recent action? Memecoins are back. POPCAT just hit ATHs.
That's a wrap for Kamino LP Corner!
I've spent this series of posts walking through the simple yet powerful tools Kamino and the wider crypto ecosystem provide you to really dig into the data on chain.
LP-ing is a tricky thing. It's definitely a trade (not an investment) but a different sort of one. Whilst price appreciation helps, the presence of yield means you can profit from price volatility: in both directions.
I've taught you everything I know about the LP process but that's only just really scratching the surface. If you're keen to continue your education I highly recommend the following resources:
Good luck out there degen.
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!
If you've been following along with our series you'll know you have all the tools you need to to dive into LPs. Cautiously of course.
Take your time.
Size according to risk.
Have a clear thesis.
Continually reassess that thesis.
Stay safe out there degen.
