A Deep Dive into Solana's Crypto Ecosystem w/ Kamino

Transcript

welcome back to the rollup High Roller Community as always nothing on the rollup is to be ConEd as Financial advice we are just an Educators in the defi space toss us a quick like give us a share a repost send it to a friend who may want to watch this and finally give us a sub or a follow it means the world to help support credibly neutral educational content in def5 we're here to educate Empower and enrich you and let's jump in what's going on guys welcome back to the rollup we're diving deep into to salana ecosystem because Santiago Sanz from Lock Works is saying salana is going to flip ethereum we got tooth fairy in the building too fairy when are we flipping ethereum come on when

sir it's not wi right let's say a q q425 all right so you are a core contributor at Camino how'd you get there uh well I started in Hub protocol and uh before that uh um I was uh more into nfts as a as a Pastime and uh got looked on on ethereum First and uh it was just too too D expensive uh to to transact there um got to salana and uh started working for for Hubble protocol and uh through Hubble we have bought uh commun Finance which we'll be taking a

look at today yeah let's dive into a demo kind of show the different features uh maybe do some live transactions since so quick and easy and um so yeah I'm a new user I'm coming on to salana because goto airdrop just happened and everyone's getting rich over there and I'm I've got foam out but I actually want to use a really solid battle tesed protocol to borrow and lend to to earn some yield um to go long or short um and with some optionality so I arrived to communo what am I doing all right so there's the this first thing two things that you can do right off the bat uh so over here we've got the the borrow end uh which has been live for about a month now and we just

hit 85 mil tvl as you can see uh so that's uh pretty pretty hyp at the moment um and you can you can come straight over here with your GTO um and click apply and uh jump straight in and if you want to get some deeper info you can head over to the uh AET Reserve page go and we're going to see few different uh Prett charts of there and um yeah that's the uh that's the short and the longer the borrow L side uh and so you would recommend definitely supplying a a variety of different assets and and

borrowing and and lending to get the most out of the uh out of the protocol uh yeah so the uh the Ling um is a is a termin that we just added and uh we've been buling it for about a year um and thought about taking it live quite a few month ago and decided you know let's uh let's B it longer let's um let's add some some uh richer features in here uh so you might have seen at the bottom of the of the B the the uh tokens starting with k so like K be so sold for example that's go about 9.7 mil um and essentially what these tokens are are

concentrated liquidity LP tokens uh I think uni B3 positions essentially um but tokenized and they um totally fible so uh that was the initial prog that we that we bought with Hubble uh are these one click liquidity bolts um and these are essentially Auto compounding uni V positions uh in in line with what you'll you'll find on GMA um you you probably know that one but these are on Orca these are these are on Orca and on uh on radium and we we're adding another one one soon

but uh I would share too much ala at so basically you can borrow against yield generating LP tokens which earn uh Dex trading fees from tokens or from swaps and and yield from from the LST uh you know the liquid Stak so under it and then you can come on to Cino and also borrow against those so it's kind of like an exotic exotic LP uh bar which is not super exotic it's just a soul soul so it's not you know there's not a lot of impermanent loss but you you get more yield plus then you get the uh apy on top um you know or or or research shown here as far as fees yeah yeah so uh this this apy is actually the p p trading fees um so this

is um yielding brother um so we this p&l number um looks very very simple at the surface but um we are as far as I know the only concentrated liquidity Market maker or at least you were the first to show P p&l numbers just cuz it's uh it's quite a hle to to figure that out uh over time um so this is like at a glance this uh pnl number looks nice and obviously it looks even sexier now than than usual uh but what what we've built on top of these automatic positions uh or or to

accompany them is a full analytic Suite uh where you can actually track your position value um and especially for these GE soul soul or like n Soul BS um the strategies that we we've bought we we've just uh been optimizing for about 18 months and uh you end up with with something like this like we can we can go ahead and select six month six month window um and you can get an idea of of just by how much um these VA up for holding uh your vanilla lxt token wow and so that's against that's that's outperformance of Sana by 4% in

the last six months yeah and up forming vanilla you you just St then you you earn about a percent less over six months so that's about a 2% API difference and then if you scroll down there you have the the fees what is the kind of fee structure work for for Camino and um yeah how how does that kind of look so uh kinao doesn't have any um upfront fees but it does have a performance fee uh so you can see it's the 99.5% and actually what that means is uh it's not 99.5% of um the deposit value it's 99.5%

of all the fees generated um by the lp so let's say your position generate $100 of fees um Cina would then take 9.5 off that $100 but if you don't generate fees uh if you don't generate fees in your position uh of your Vault and generate fees for you then you don't Comm doesn't take a fee essentially yeah exactly yeah good performance only and then when go sorry sorry I was going to say when you go to the analytics page and you show that the uh Improvement of the community strategy compared to the other hoto strategies um does that actually

account uh fees as well so after fees the strategy is a 4.07% or is that pre fees uh this is pre fees um so what that would essentially mean for the maap then you would uh take about point .4% of away that so you can call this 3 3 sish yeah still half a percent or more higher at least yeah yeah and then you can go every with sure with with B Nam that that's what makes it a pretty pretty exciting prospect for sure it's

like not just a boring con trated liquidity position you can't do anything with you get higher uh returns then you get more C efficiency you can go and loop that you can kind of do whatever you really want to do with it and then so so so definitely want to be using Camino for LP lending and just normal asset lending for sure yep um and if I'm made I'll uh I'll just show a quick a quick peek um at to product that we have in beta as well uh that's fine me do a few minutes brother we got all day brother us let go uh so we have uh this multiply product which

essentially um makes an automated tube with your MST uh where you supply uh an L into the Borland and then borrow so um and essentially how it works is commo uh Tex flash loan um opens up a position at Target l and uh then you s sit pretty ear yield um as long as the LST yield is above the um the so borrow rate uh it essentially means you're earning so uh we can we can go and click into into beel um so the beel base apy right now is something

like 7 let's call it 7.5 um and if you go to multiply and they say I want to drop in two forms Vault um by default I would earn 7.4% which is just the vanilla um staking API if I go ahead and drag this multiplier I can drag it I can drag it up to 5x let's be let's be a bit more risk ofers and go for it um only in crypto is Forex risk averse well well

well we can we can call it risk averse uh to a degree and the reason being both these assets are picked to so right yeah it would require a really severe dpeg you can see that here at at 4% 75 LTV and liquidation is at 90% so you you need a dpay of you know 15 plus percent um compared to the so price in order to get liquidated which I mean [ __ ] happens right so let's uh let's all act like the this position doesn't have risk but um to double your your staky apy um that's a that's a risk

I'm going to take uh person for sure so send it what finishes on so basically you can you can do oneclick looping here where you have to do well you have to do multiple transaction confirmations but you can deposit just plain old vanilla Sole and be instantly uh put into a uh a leverage position on a leverage loop on Bol by depositing Bol borrowing so deposi B so baring soul and that does it automatically through Meo for you yep and um the so so is actually one just that that initial one was a just a setup

which you need a few if you interact for the first time so we can we can go you can these the the bit of bit of slippage that's involved here hence the the minus just above one but um as you can see here you can see what your title exposure to be sold what your title de um the from Liquidation uh all the all the good stuff you know to uh wow that's really solid really juice the yields there yes sir we love to see that that's awesome and then what is the bottom there the simulation how does that impact users uh so this is essentially uh if

you've got an open position uh you you see so this takes you back to this um and uh basically if you want to adjust your with position uh you don't want to go in blind right so let's say I want to adjust my Lage I'm feeling a little a little frisky today so I'll take it up to to 4.5 um and then over here I can see a simulation of what my position is going to look like uh after I make this transaction so my net value um is more less the same uh apy pumping the apy by by another percent um increasing collateral increasing debt and make m a bit more risky you know um and this is

the same for uh for any of the transactions so let I want to add another s then uh simulation um should it might be slow all working beta boys to Beta yes sir but yeah that's that's what it is nice Ben um did you want to show that that last tab or is that one still a work in progress more or less we can uh we can definitely go have a look um so uh this is long short and the uh the tldd on this in we looking around the ecosystem and um basically the only way to get

leverage uh on chain at the moment is through perss right uh it's either perss uh or or you have to magly go Supply borrow swap Supply borrow swap um and the first one is pretty expensive because funding rate for expensive and the second one is just a paying d right um so what we've B is a uh leverage product where um you very simply can get leverage exposure uh to various assets uh this is not the 100 X's um this is more getting exposure um to an asset up to um our param or

conservative now because uh we take risk management extremely seriously and uh we uh are scaning it up very slowly but here all uh you can get up to 2.8x leverage but let's say 2x leverage and uh this position can just sit longterm you don't pay fighting rat the only um the only rate that you pay is um the usdc borrow rate uh which is offset by the so Supply rate right so here you can see your the borrow apy on this position so essentially the funding rate is 2.8% 2.89 yearly which is way lower you know

than on your average per platform so that that that was the behind this one so just one click easy leverage lowc cost long-term um looped by cam L and usdc yeah love that nice man I I appreciate the uh the the presentation and just kind of shown us around how do you think about the current uh state of Solana after the bare Market um a lot of hype after the goo air drop obviously we get have a ton of aird drop hunters and Farmers come along but you know generally where do you see the ecosystem flourishing what

are some things that system needs to work on what's the state of salana as from the inside yeah uh I mean it's been it's been a incredibly uh tough grind uh since about well about Luna from that time onwards basic and uh as as you probably saw in December and um we as a project or also had to very seriously ask ourselves you know how strong is our conviction in this ecosystem um do we believe in the people bilding here do we

believe in the Teck um which does matter right uh and the conclusion of the of the uh you know some some very serious uh introspection and conversations was yeah we're sticking with it um and uh it's been a crazy 20 2023 uh and as you say uh it's been pumping the last two months um massively uh so suddenly the tech got really good out there as as they said um and yeah sry you want to say the um so kind of that's the post be

Market by you know kind of what what is really flourishing in the ecosystem that you're seeing and you know where do you see some uh challenges or work need to be done still yeah so so I'll I'll start that by by answering the the question about what does it look like post cheeto a drop um which was just you know off off the chart huge um and uh as you say there's a lot of Ed forms coming in right now uh inevitably um but I do think that the stateus of Honor um I just the ux of as as you know I mean you are you you're pretty

familiar with it yourself it's just it's so good that people coming in from e or from other ecosystems generally all bound to stay not all of them but just Sal just too smooth and too good um so so I would say that the the outlook on our end is is really optimistic um not just because we person uh grew like 700 and something perent in the last month but um I would say the the up is really optimistic and uh you see you see a lot of projects that have been building for a year plus

and now you know getting more distribution um getting more eyes on it um and you know that that that's for for the good of for the good of everyone um you know Rising TI yeah man and then kind of to wrap us up what are some things that you're excited um that are being built now some uh some some Alphas for the community where can uh where can the rup Community get in there on salana and really make some uh make some interesting plays get our get our eyes onto to the right areas you know what's exciting you right now from the insides that maybe isn't so so

exciting or no um or or just kind of all the above like what what are you excited about and where is it happening and how people get involved yep uh well I have to show Kina um in a in a very much biased manner at the top of that list um we you know we did like for a month and uh it's been a it's been a long grind to get to where we are now and the product we that we have now has been has been like a year and a half in the making it um and we' got as you might you might have seen at the I'm not I'm not sharing screen anymore no no okay good so you you'll

see on the community F uh points are coming as well which uh may or may not be to may or may not something interesting yeah um so so we've got that coming and uh Beyond Cino um I mean jeto the the jto drop was just huge but J Project are doing some incredible uh things in the in the the ecosystem um so so definitely check out Jeter they uh they are they they make me bullish uh on Sala as well like true air drop recipient yeah yeah for sure and uh

then there's jup as well which uh you you probably know the jup air drop is is sh up as well yeah so high J jup is uh jup are top team know so that they've got J and they've got um Medora as well which uh which is which is a exciting product they been launching like a Trader Joe style um D coming coming soon soon TM yeah so I'd say that's a pretty pretty good overview for cheers man well thank you for coming on and uh really really excited to see how Cino uh

develops becomes more of a household name uh in Solano over the coming uh months and um yeah man let it rip sweet thanks for having you Jim thank for the community bye