Kamino LP Corner #4

BbyA...nMtW

13 Jul 2024

191

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?

We didn't go as bad as the market has been, compared with last update our losses aren't anywhere near those. They're actually quite modest.
It appears we choose well as goes the yields as most have held up in the intervening time even if the token prices themselves have been quite volatile.
KMNO-jitoSOL actually turned a profit, even better when you factor in rewards.

Of course token prices are important to any position and we've seen seen some poor performance and some encouraging performance over the time. Overall though, this is still a down market and it appears it'll be that way for a while still.

The candidates

In a down market looking for bargains is the thing. We're going to look for tokens that we think are oversold, have good fees (i.e., APYs), and viable liquidity (over 20K TVL).

Let's see who's out there.

Kamino Vaults

Token prices

One thing you'll notice about the market right now is: It's down. A lot. Not bear market down, but a quick look at many solid tokens and the numbers are big. You can see that reflected in the Kamino analytics as well.
When we're looking to set up our LPs we are going to be looking for those which have solid fees PLUS a good potential upside over the next 3 weeks.

To LP or not to LP

Here's the positions we went with.

OKT

It's a gaming project that's been pulling in some impressive fees and has steadily been releasing small simple games but has been releasing them consistently.

https://octo-gaming.com/
https://x.com/Octo8gaming

https://coinmarketcap.com/currencies/octo-gaming/

ZEUS

Fees are crazy high like OKT, but they're good, and we've seen some big spikes. Zeus have some big releases coming up as goes their BTC infra and with the BTC price also down, this has a potential to see some really positive price action.

https://x.com/ZeusNetworkHQ
https://zeusnetwork.xyz/

https://coinmarketcap.com/currencies/zeus-network/

ZEX

High fees, high farming rewards. What's not to like right? Zeta Markets are a good project and the upcoming ZK powered Solana L2 (the first of it's type) is bullish. However that is a while away and in the shorter term there's a bunch of token reward unlocks coming. They'll start end of July and continue till October.
It's a measured bet that Zeta can keep interest in the project high enough and keep the rewards coming to offset the sell pressure.

https://www.zeta.markets/
https://x.com/ZetaMarkets

https://coinmarketcap.com/currencies/zeta/