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.
2 Likes
Just one question⌠where would the proposed CLOUD incentive come from?
4 Likes
I would vote yes based on the information Iâve read here today. However, I would prefer to see two separate liquidity pools, each funded equally: one for $SOL/INF and one for $CLOUD/INF.
Additionally, I would like the $SOL/$INF liquidity pool locked and only accessible to verified $CLOUD holders. To participate in the pool, all investors must hold a small percentage of staked $CLOUD. This percentage could range from 1-10% with verification at the time of deposit.
I would love to see this strategy applied to Sanctum LSTâs as a whole. With a 0.5% rate across the board, $1 billion in total LST investments would result in $50 million in staked $CLOUD. This would help reduce inflation, stabilize/increase the price, and enhance the overall use case.
2 Likes
This proposal is long overdue but regardless itâs still a right step in a right direction, for INF to retain its position as LST of LSTs then its liquidity need to be reasonable to facilitate large size wind down without crazy price impact.
I would also like to suggest if we can consider incentivizing (INF - USDC), (INF - CLOUD) LP as well.
I will personally provide liquidity for INF - SOL LP. Letâs get this done this time around.
4 Likes
Cloud incentives might help boost liquidity in the short term, but long term I think it would be ideal to have more INF use cases in DeFi.
If there are more use cases demand for INF would naturally increase, and liquidity would be provided organically.
For example, why is INF not an option in Kamino Multiply?
As a DeFi user, why should I consider providing liquidity to the Kamino INF - SOL pool when I can potentially earn higher yield with PicoSOL, etc. in Kamino Multiply?
3 Likes
happy to work on a different proposal for CLOUD-INF, i think it makes a lot of sense
you can also give it a shot
3 Likes
coming soon 
if INF isnât yet on multiply itâs because it canât be on the main market (the program isnât lindy enough)
as to what someone may want to provide liquidity instead of having a multiply position, i would reply risk tolerance: providing liquidity is truly passive and there is no risk of liquidation
4 Likes
Thank you for the analysis - I think with the amount of cloud, itâs sufficient and the benefit is cross-marketing on KMNO. Everyone uses KMNO and in the past a few members really wanted an INF-SOL pool somewhere as wellâŚ
One thing I always keep in mind is how the pool will benefit CLOUD holders⌠and since we donât have fee switch yet⌠that still is a concern.
Nonetheless, I support this proposal to come thru and will anticipate the voting to occur!
4 Likes
No, Kamino reinvests the fees from the LP but the farm rewards are collected in a separate part where you can claim them manually.
Good question to ask though. I do know itâs been suggested to Kamino to allow people to select a âre-investâ option for farm rewards before but it never got off the ground.
5 Likes
Hopefully with more TVL in the LP and more attention due to farm rewards that might help make the case to include INF in Multiply
2 Likes
Itâs a big YES from me. Kamino is fast becoming the âfront pageâ of Solana for LP providers so anything that boosts Sanctum visibility is good.
Kamino will announce the rewards on their socials and in the discord so thatâs good promotion.
Getting more CLOUD into the hands of LP providers is also bullish as these are people who are active in defi and taking risks so you have a higher chance of them reinvesting that CLOUD back into the LP rather than just selling it (like airdrop recipients are more likely to do).
Itâs been mentioned before but anything that possibly helps INF get into Multiply is also very good for Sanctum and more exposure on Kamino is the first step in that direction.
4 Likes
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how is 15% APY being calculated in the proposal (sol or usd denominated)?
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Important comment on 15% APY if itâs denominated in SOL. From investment perspective I would compare proposed INF-SOL pool to APYs that you could alternatively obtain from other SOL denominated instruments:
- lending sol (Kamino 5-7%, Defituna 5-16% depending on market activity);
- different LSTs that achieve APY 10-15%.
There is currently solana protocol proposal in discussion stage about using market based approach for solana staking inflation.
Basic idea is that the inflation decreases if SOL stake grows higher than targeted. If this proposal is accepted it could push down inflation rewards, motivate people to rotate sol from staking into DEFI.
And the overall effect could push down all sol denominated APYs both in DEFI and from staking.
So it makes sense to take into account such probability and:
- either to wait for that solana proposal to pass and than recalculate targeted 15% APY if industry instruments effected
OR
- to add into proposal remark about reconsideration of targeted 15% APY if solana inflation proposal passes.
If we donât reconsider 15% which is good industry figure now, but that figure will drop in the future - we may end up overpaying extra APY.
Was looking at Kamino INF-SOL pool. Itâs Orca. Current TVL seems to be $166k, which is quite low, and certainly needs a boost.
Meteora INF-SOL has about $700k which is much better, but somehow there are currently only 410 INF / 4400 SOL in the pool. Itâs a little imbalancedâŚ
1 Like
imma be honest , imagine someone who doesnt have cloud
- buys inf
- want to get cloud
- sells cloud ~192,000k$ as of rn
even rn i think inf has more value in sanctum eyes
taking a share of pie
or
using a share of income (this doesnt effect any price)
facts , bonk has many defi integrations
we can take as example
inf gotta be ultimate asset for defi activityâs
I agree. I think itâs a good thing.
a very good point, you can find how kamino is calculating the APY below
it looks itâs denominated in dollars
1 Like
probably needs to be some footnote/provision for amendment for the incentive % if simd-0228 passes and the potential reduction in LST Staking rewards occurs , as the 2.5m cloud incentive could get used much quicker without something in place
3 Likes
Some great points. Makes a lot of sense to me!
1 Like
By giving $Cloud to only Inf-Sol LP pair, it becomes easy for Inf-sol Lp providers to dump on cloud holders. More cloud initiatives should be provided for Cloud-Inf LP providers, which pushes more cloud buy pressure.
1 Like