$32,000 in Rewards Distributed in Month 1 of Kamino Airdrop Program
Note: This article is not financial advice. Kamino Finance does not endorse any tokens or platforms mentioned in this article.
Kamino has distributed over $32,000 in rewards, concluding the first month of its airdrop program.
In partnership with five different projects offering incentives on vaults, the Kamino airdrop program helps attract liquidity to vaults, rewarding users for serving a core function within the ecosystem: liquidity provision.
Kamino Brings a New Liquidity Solution to Solana
Kamino vaults have introduced an optimized liquidity solution to the Solana ecosystem. Leveraging the power of concentrated liquidity pools, Kamino vaults identify the optimal ranges to provide liquidity on concentrated liquidity (CLMM) DEXs like Orca Whirlpools.
In addition, the vault smart contracts automatically adjust these ranges to ensure continuous optimization, as well as auto-compounding fees and rewards from the concentrated liquidity pools back into the user’s position.
Concentrated liquidity DEXs are bringing unprecedented capital efficiency to DeFi, and Kamino builds on this innovation. The platform’s automated vaults change providing liquidity on CLMM DEXs from an often challenging and time-consuming process into a one-click, automated experience.
How the Airdrop Program Rewards Users
With liquidity incentives across 11 of Kamino’s 12 automated vaults, Kamino’s first month saw a total of 559 users benefit from the airdrop program, with over $34,000 in rewards distributed.
The success of the airdrop program can be measured first and foremost in the total liquidity that has flowed into Kamino vaults, and in turn, into Orca Whirlpools. By the end of its first month on mainnet, Kamino has now accumulated over $5.3M TVL, accounting for more than 15% of the total liquidity in Orca whirlpools at the time of writing.
Airdrops as the Tip of the Iceberg
Significantly, the airdrop program alone is not responsible for driving users to the platform, as Kamino’s deposit ranges enable its vaults to earn up to triple-digit APYs from fees and rewards on Orca alone.
These fees and rewards are then auto-compounded back into user positions, which in turn are tokenized as kTokens and can be used in Solana DeFi – with the first integration already live on Hubble Protocol.
Above and beyond this market-making APY that users receive for their liquidity provision, the airdrop program serves to further boost liquidity in the Solana DeFi ecosystem.
Beyond partnering up with projects to offer incentives and drive liquidity to the platform, Kamino has also teamed up with Zeta Markets to offer options as incentives on Kamino vaults. Options incentives are a way to elicit cooperation from the community, while also softening the downward pressure on the token price that incentives often entail.
Airdrop Program - Month 1 Summary
Taking into account the strike prices of the rewards options incentives, and calculating the incentive value based on exercising these options, the total value airdropped across all vaults amounts to $32,490 at current token prices.
Options rewards are an innovative way to provide incentives to users to provide liquidity as well as further their participation in DeFi. As Kamino helps users enter market making with automated vaults, it also proudly strives to increase DeFi knowledge in other areas of the ecosystem with Zeta.