Solana-based liquidity management tool Kamino Finance launched the Jito Market within Kamino Lend. This isolated market is designed to facilitate the growth of JitoSOL and may pave the way for the integration of other assets from the Jito ecosystem, like VRTs, into Kamino Lend. Notably, the Jito Market is the foundation for Kamino’s first 10x Multiply vault. The market is now operational, with a $10 million cap on SOL deposits.
JitoSOL holds a dominant position in the SOL Liquid Staking Token (LST) market, commanding over 43% with more than 14 million SOL staked. Despite this, only a small fraction of JitoSOL is actively utilized within decentralized finance (DeFi). The Jito Market is specifically crafted to offer JitoSOL holders new, low-risk yield opportunities. Initially, the market features only JitoSOL and SOL, with JitoSOL assigned a 90% Loan-to-Value (LTV) ratio to facilitate capital-efficient looping between the two assets.
The market launch includes JitoSOL and SOL as the sole assets. A 90% LTV is set for JitoSOL, enabling up to a 10x leverage loop between JitoSOL and SOL, increasing exposure to the staking annual percentage yield (APY) of JitoSOL. To incentivize SOL contributions, JTO rewards will be distributed to SOL lenders, starting with 8,000 JTO per week.
In its initial phase, the primary goal of the Jito Market is to support efficient looping between JitoSOL and SOL. As the market evolves, it will potentially incorporate more tokens from the Jito ecosystem, such as VRTs, to unlock additional and distinctive yield opportunities.
1/ Introducing the Jito Market
— Kamino (@KaminoFinance) November 4, 2024
Built to scale JitoSOL on Kamino Lend, the Jito Market will also power Kamino's first-ever 10x Multiply Vault—already live in the app!
To fuel the launch, SOL depositors will receive 8,000 JTO incentives in the new market. Every. Single. Week. pic.twitter.com/wcGDsd0m7F
Kamino Finance Introduces JitoSOL Multiply
Further simplifying the process, Kamino Finance has introduced a 10x Multiply vault built on the new market. Kamino Multiply is a user-friendly, one-click yield product that enhances exposure to JitoSOL yields while maintaining full SOL price exposure. Users simply deposit JitoSOL, and Multiply automatically establishes a looped position, where JitoSOL is supplied and SOL is borrowed.
Since user positions are composed entirely of SOL-pegged assets—JitoSOL and SOL—users maintain complete exposure to SOL’s price without facing liquidation risks from price fluctuations. This design ensures that price movements of SOL do not lead to liquidation, providing an additional layer of security.
In order to further safeguard users, Kamino has implemented two crucial mechanisms. First, it has developed specialized LST price feeds that are resistant to temporary market depegs. Although JitoSOL has not faced depegging, this infrastructure protects Multiply users from potential impacts should such an event occur. Second, SOL borrowing within the Jito Market is capped at 87% utilization, with the borrow rate at approximately 6.5% at maximum utilization. This structure ensures that JitoSOL Multiply remains profitable even when the SOL borrowing cap is reached.
Kamino Finance is a decentralized finance (DeFi) protocol that combines lending, liquidity provision, and leverage into its platform. It enables users to engage in automated, one-click yield strategies, utilize concentrated liquidity positions as collateral, and create automated liquidity strategies for efficient and optimized returns.
The post Kamino Finance Launches New Jito Market In Kamino Lend To Accelerate JitoSOL Growth appeared first on Metaverse Post.
