Kamino's Solana Vault Offers 7-8% Yield for USDC Depositors

Kamino has launched its new product Kamino Institutional Yield on the Solana blockchain, offering a 7% to 8% yield vault for users who deposit USDC.

The Kamino Institutional Yield platform connects capital held on Solana with credit markets outside of crypto. Users who deposit USDC into the Commodity Yield vault will receive kicUSDC tokens, representing their proportional interest in the strategy and reflecting the yield generated by its underlying loans.

Kamino says that the capital is deployed through a fund structure regulated by the Cayman Islands Monetary Authority (CIMA). The fund finances short-duration commodity transactions, with repayment depending on the performance of these transactions. This means that depositors are exposed to the performance of a managed credit portfolio rather than a visible pool of crypto-backed loans controlled mainly by smart contracts.

The Commodity Yield vault has an initial $25 million deposit cap and is designed for users who want USDC exposure to private credit and can tolerate waiting for repayment during stressed conditions. The product is not suitable for money that may be needed immediately, as withdrawals may be delayed until outstanding loans mature or borrowers repay their loans.