Solana Users Can Now Earn 7-8% Yield on USDC Deposits via Kamino Institutional Yield

A new product called Kamino Institutional Yield has been launched on Solana, offering users a target yield of 7% to 8% on their USDC deposits. The vault is designed to connect capital held on Solana with credit markets outside crypto, and it uses a fund structure regulated by the Cayman Islands Monetary Authority (CIMA). Users deposit USDC into the Commodity Yield vault and receive kicUSDC tokens, which represent their proportional interest in the strategy.

The capital is deployed through the fund to finance short-duration commodity transactions. The loans are supported by physical commodities and/or cash held in 1:1 escrow accounts with tier-one banks. However, repayment may depend on various factors, including commodity traders and corporate borrowers, suppliers and end buyers, escrow agents and commercial banks, shipping companies, inspectors, and insurers.

Kamino notes that the vault will provide continuous portfolio transparency, but some details, such as loan maturities, borrower concentration, collateral location, repayment status, overdue balances, and completed recoveries, may not be immediately visible on-chain. The product is suitable for users who can leave their funds invested through the duration of the underlying loans and are comfortable evaluating risks that cannot be checked entirely through blockchain data.