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Managed Vaults with VCHF and VEUR on Kamino are live
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VNX stablecoins, VCHF and VEUR, are seeing growing adoption among decentralized finance (DeFi) platforms. These stablecoins are referencing Swiss Franc and Euro respectively, bringing stable assets to the decentralized finance.
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We’re excited to see Kamino, an automated position manager on Solana for concentrated liquidity DEXs, has added new managed vaults for concentrated liquidity pools on Orca with VCHF and VEUR in pair with bSOL, a staked and liquid SOL token from SolBlaze:
Kamino allows users to earn optimized yields by providing liquidity to concentrated DEX pools in a hands-off, automated way. This contrasts with the effort required to manually manage liquidity positions and rebalance them over time.
With Kamino, users deposit their assets into managed vaults which are then used to provide liquidity on their behalf. Kamino’s algorithms dynamically rebalance positions to maximize fees earned from swap volume while minimizing impermanent loss.
For example, when providing liquidity to a bSOL/VEUR pool on Orca, Kamino will automatically shift the balance between the two assets based on price changes. This ensures your liquidity remains concentrated in the highest value asset.
Over time, this results in significantly higher yields compared to a basic 50/50 pool position. Kamino takes care of all the active position management, allowing users to passively earn yields without having to monitor the market and manually rebalance their liquidity.
Kamino’s integration with VNX stablecoins VCHF and VEUR represents an exciting development for the growing DeFi ecosystem on Solana. By automating concentrated liquidity positions on Orca, Kamino makes it simpler for users to earn yields while providing much-needed on-exchange liquidity.
However, these high APYs don’t come without risks. Impermanent loss remains a threat, especially during periods of market volatility. Users should carefully evaluate their risk tolerance and position sizes before committing funds. Proper diversification across multiple pools can help mitigate risks.