All proposals have a deliberation process before officially tabled up to governance. This proposal has the following timeline:
- 7 days deliberation
- 3 days voting
INF has been one of the best SOL-based assets for a long time now. It just slightly underperforms the best available LST on the market but outperforms the two most popular LSTs on Solana, mSOL and jitoSOL.
Despite INF’s strong performance, the INF-SOL liquidity isn’t deep enough currently. This is a concern for large depositors who wish to exit INF in size. Additionally, If INF is to become the liquidity nexus of Solana for all LSTs, it will require a deep pool of SOL native liquidity. We therefore wish to grow SOL native liquidity by incentivising INF-SOL Kamino vaults.
Why Kamino vaults? More than 95% of existing xSOL-SOL liquidity on AMMs comes from Kamino managed vaults which suggests that users aren’t keen to provide liquidity unless their positions are managed by a third-party, and automatically rebalanced. See for example this Orca jitoSOL-SOL liquidity diagram:
The INF-SOL Kamino vault strategy has been a great place to park your INF. In fact, the INF-SOL vault has outperformed a 100% INF HODL strategy, most likely because of the very high capital velocity (high trading volume relative to TVL).
The industry standard is to offer LPs a 15% combined (fees + incentives combined) annual yield. To incentivise initial liquidity even more, we propose to offer LPs a 20% yield for the first month, then dropping to 15% henceforth. Depending on TVL increase/decrease and price of CLOUD, the Kamino team will be in charge of guaranteeing a 15% APY on up to $2.5M TVL, or until 2.5M CLOUD is exhausted, whichever comes first.
Assuming the $2.5M TVL cap is reached, incentives should last 6 months at least.
if I understand it correctly, this is like how the sanctum routerhas a pool of SOL so that regardless of the value of SOL, you can always convert back to SOL from any lst and regain your Solana?
If this is the case and the goal is to now act as a liquidity nexus for Solana. I am all in favor.
Yes, I like this proposal. INF is a great asset (sol-based) with a pretty good yield. Going to Kamino is a great strategy. More people will acknowledge the asset.
The proposal is well articulated. Other LST like jitoSOL have incentivised pool on Kamino. If they do it it must be for a reason. It gives CLOUD more visibility. 2.5M Cloud is fine compared to the 10M of previous proposition.
I think we should adopt JUPs grow the pie mentality. Make $CLOUD desirable asset, that transcends just being a token. That represents being a cloudmunity member
I would like to begin by stating that I am aware that a lack of liquidity can cause significant issues, including a lack of interest from major players such as institutional investors and whales. I agree that we should consider ways to bring more TVL incentives to the $INF and $CLOUD pools. However, we must be very careful about how we approach this. The proposal here involves minting tokens, which could lead to inflation of the $CLOUD token, which is already facing challenges in the current market conditions.
I want to express my genuine concern: this proposal could create sell pressure on the $CLOUD token, as 2.5M tokens correspond to 1.25% of the circulating supply that would be distributed to liquidity providers who are only exposed to $SOL, given that $INF is correlated. These 1.25% might seem small, but with the uncertainties in the macroeconomy and the current market situation, we might struggle to absorb this pressure.
The solution is not straightforward, but as I mentioned earlier, my idea is to include these pools in the scoring for the second airdrop campaign. I am not sure where we stand on this, but if the team is planning something along these lines, we could include the INF-SOL and CLOUD-SOL pools in the next airdrop campaign. This way, we could incentivize increased liquidity in these pairs without necessarily disclosing specific amounts and causing sell pressure. The airdrop could be executed during a more favorable market period, so the $CLOUD token does not suffer from this sell pressure. Additionally, if the token starts performing well, we could revisit this proposal (CLOUD-3) using fewer tokens, should we still wish to attract more TVL.
its a no for me, cuz as we talked and shown earlier (if im not wrong) INF has enough liq (USDC) to live like a organism. So this liq pool is just working for selling cloud against INF. Maybe we could add some buyback mech with gains on Kamino to the proposal for reversing the selling effect. And I also wanted to know what teams think about next Solana Proposal SIMD-228. If it passes there will be a change on staking infra I believe maybe INF effects positively but its not clear rn. So this one is no for me rn, I research more and will give feedback more.
Enhancing the inf-sol liquidity pool by incentivizing Kamino vaults makes a lot of sense, especially given the current challenges and the data you’ve presented. I appreciate the clarity on why ind-sol liquidity needs a boost large depositors needing confidence in exiting sizable positions is a fair concern, and positioning inf as the liquidity hub for Solanas LSTs is an ambitious but logical goal. Leaning on SOL native liquidity to get there feels like the right move.
The case for kamino vaults is compelling. If 95% of xsol-sol liquidity on AMMs is already flowing through their managed vaults, it’s clear that users prefer the hands-off, auto-rebalanced approach. The inf-sol vault’s outperformance over a pure inf HODL strategy is a strong selling point too high capital velocity seems to be working in its favor, and that’s hard to argue with when the numbers back it up (nice nod to the kamino inf-sol vault data, by the way).
Your incentive structure strikes a good balance between kickstarting growth and sustainability. A 20% yield for the first month is a solid hook to draw in early liquidity providers, and dialing it back to the industry-standard 15% afterward keeps it competitive without overextending. Tyin the 15% apy guarantee to a $2.5M TVL cap or 2.5M $CLOUD exhaustion gives a clear runway six months minimum if TVL maxes out is a reasonable horizon. Letting the Kamino adjust based on TVL and CLOUD price dynamics also shows smart flexibility.
st it might be worth digging into why users are so reliant on third-party management for liquidity provision could there be an opportunity to educate or onboard more hands-on LPs over time, or is this just the market’s natural tilt? nd, how do you see the interplay between INF’s strong fundamentals and this liquidity push? If INF keeps performing, will the need for such heavy incentives taper off as organic liquidity grows?
This feels like a pragmatic step to deepen inf-sol liquidity and cement its role on Solana. The Kamino vault focus leverages what’s already working, and the incentive plan is well-calibrated to spark interest without breaking the bank. Looking forward to seeing how it plays out!
Imo this proposal could create sell pressure on $CLOUD.
2.5M tokens it’s huuuuge and it’s corresponding to 1.25% of the total supply.
That would be distributed to liquidity providers who are only exposed to $SOL, given that $INF is correlated. 1.25% it’s something big (especially regarding the current market situation).
st it might be worth digging into why users are so reliant on third-party management for liquidity provision could there be an opportunity to educate or onboard more hands-on LPs over time, or is this just the market’s natural tilt?
nd, how do you see the interplay between INF’s strong fundamentals and this liquidity push? If INF keeps performing, will the need for such heavy incentives taper off as organic liquidity grows?
you