Kamino and Samoyedcoin Partner to Offer Two SAMO Vaults
Kamino Finance and Samoyedcoin (SAMO) are collaborating to increase on-chain liquidity for SAMO. These two vaults will also enable traders to access more capital-efficient swaps with less slippage when trading the Samoyedcoin token.
Note: This article is not financial advice. Kamino Finance does not endorse any of the tokens or platforms mentioned in this article.
- Kamino has added two vaults that manage SAMO liquidity
- Samoyedcoin is one of the earliest meme tokens launched on Solana, with a focus on onboarding new Solana users
- The Samoyed Kamino vaults will receive 1 million SAMO tokens in rewards for 1 month
Kamino Finance is thrilled to announce a partnerships with Samoyedcoin by launching SOL-SAMO and USDH-SAMO strategy vaults. Samoyedcoin (SAMO) has been a catalyst for making Solana known to a wider audience, and the protocol believes this collaboration will help further the ecosystem and Samoyedcoin’s vision.
Kamino will help improve SAMO token liquidity with automated management vaults built on top of Orca’s Whirlpools. While concentrated liquid pools are known to be more capital efficient, their management is complex and requires expertise and time.
Kamino’s vaults aim to remove those drawbacks with the automated management of trading ranges, rebalancing, and autocompounding of fees & rewards for users providing SAMO liquidity.
For those wondering about each Kamino vault's differences and risks, this recent article covers several types of vaults to help users find suitable Kamino vaults according to their profile and market outlook.
Samoyedcoin Kamino Vaults Receive Additional Rewards
By depositing their tokens through Kamino's SAMO vaults, users help improve SAMO’s on-chain liquidity while acting as market makers. In return for their market-making efforts, users earn trading fees from traders, otherwise known as market takers, who swap tokens facilitated by SAMO liquidity pools.
In addition to the fees generated by swaps, users depositing liquidity in Samoyedcoin's Kamino vaults will receive 1,000,000 SAMO in rewards. These SAMO rewards will be distributed for 1 month.
About Samoyedcoin (SAMO) and Recent Community Activity
Following BONK’s recent popularity, SAMO gained increased attention in the following days. The SAMO community has shown renewed interest in DeFi participation, and this can be seen in social media as well as in several metrics for SAMO activity in recent weeks.
Samoyedcoin’s contributors also recently signed an agreement with the market maker Efficient Frontier. This market maker will help provide token liquidity to ensure capital-efficient swaps on exchanges where $SAMO is listed.
Moreover, Samoyed has started to redirect some focus toward burning SAMO with new initiatives to reduce its supply. Their new tool enables any Samoyedcoin community member to burn $SAMO, and SamoDAO is also considering using net proceeds from the Samo Validator to buy and burn $SAMO.
How Kamino Optimizes Liquidity for Project Tokens
When projects launch a Kamino vault and receive deposits from users, Kamino's actively managed concentrated liquidity positions can help increase the available depth of liquidity around the quoted value of that project's token. This means traders can swap with improved capital efficiency and minimized slippage.
A recent example of the effects managed concentrated liquidity can have on the liquidity of a project’s token is Bonk Inu (BONK). Concentrated liquidity has become one of the biggest sources of liquidity for the Bonk Inu token on Solana's DEXs, and Kamino's latest BONK vaults have accounted for a significant amount of BONK’s total liquidity on Orca at the time of writing.
While the Solana ecosystem grows and creates new market-making opportunities for users, Kamino will expand its automated vault offerings to meet the needs of the community. The addition of volatile assets such as BONK and SAMO to Kamino's vaults should help improve the on-chain liquidity of some of Solana's most actively swapped assets.