Kamino Finance: Withdrawing your Tokens & Seeing your Profit!
Welcome back to the world of Decentralised Finance (DeFi), where the possibilities of growth and control over your own investments are driving a new era of finance.
Today, we return to Kamino Finance after diving in and adding liquidity to our portfolio. What lies ahead is an informative journey on removing liquidity and analysing the profits garnered over this period. So, let us roll up our sleeves and dig into the processes and excitement surrounding Kamino Finance.
Understanding DeFi and Kamino Finance
For the uninitiated, DeFi is an umbrella term for financial services on public blockchains, primarily Ethereum. Running on the Solana blockchain, Kamino Finance stands out as a DeFi platform that builds on these decentralised concepts, offering users the chance to provide liquidity and earn from their cryptocurrency assets.
A Look at Our DeFi Wallet Portfolio
I personally recommend utilizing separate wallets for different transactional purposes due to the clarity they bring to your DeFi endeavours. Within our specific DeFi wallet, we tap into the ‘My Portfolio’ section, revealing various vaults where our assets are nestled. One of the most advantageous aspects of Kamino Finance is the user-friendly interface that displays critical data such as the annual percentage yield (APY) and transaction history.
Portfolio Performance: Assessing Our Yield
About a month ago, we took the plunge by providing liquidity with pairs such as COCO-NANA, SAMO-SOL, and HNT-SOL. These assets feature inherent fluctuating values as they contribute to the liquidity pool, allowing us to participate in fee yields. For instance, our COCO-NANA pair saw the highest return due to trading fees.
While a profit of a few dollars over a month might seem minimal, the principle of scalability applies. This means larger investments proportionally yield more significant returns — a stellar feature of liquidity provisions in DeFi.
Withdrawing Liquidity from Kamino Finance
Let’s roll out the mechanics behind withdrawing liquidity. The process is straightforward:
Select the vault from which you want to adjust or withdraw. To change the asset price range in which you provide liquidity, go to ‘Manage Strategy’, Select new range presets, and confirm the transaction update.
To withdraw, choose the asset pair, decide on the specific amount, select ‘half’ or ‘max’, and confirm your selection.
Step-by-step Withdrawal:
Click ‘Withdraw’ on your chosen vault.
Input the amount or opt for ‘half’/’max’ selections for either currency pair.
If withdrawing asymmetrical amounts of both assets, disable ‘auto swap uneven amounts.’
Adjust the slider to select the percentage of assets you wish to withdraw.
The Phantom interface graciously simulates the transaction, indicating the LP tokens to be removed and the assets you’ll receive.
Pro Tips
Keep an eye on the APY and PnL for informed decision-making.
Use Kamino’s smooth interface to tweak and optimize your investment strategies.
Understanding Kamino LP tokens are essential, as they represent your share in the liquidity pool.
Kamino Finance: Beyond Liquidity Provision
Kamino is shaping up to be the go-to DeFi application on Solana, with anticipation brewing over new features, such as margin trading and lending services. With the platform still in its beta phase, these advancements promise to make it even more compelling for DeFi enthusiasts.
The Road Ahead: Exploring Liquid Staking Tokens
Our journey continues beyond Kamino Finance. The growing world of liquid staking tokens awaits, and over the next posts, we’ll uncover its intricacies and opportunities. Stay tuned and ready to continue our exploration of the ever-evolving DeFi landscape.
Wrapping Up
DeFi can often seem like a labyrinth, but tools and platforms like Kamino Finance are carving a path for individuals to navigate with greater ease and opportunity. Remember to stay curious and open to learning as blockchain and decentralized finance evolve.
If this post piqued your interest in liquidity pools and DeFi, watch out for my upcoming posts.
Until next time, happy investing, and as always, keep an eagle eye on those APYs! Catch you in the next post!
Disclaimer: This is a helpful blog. Follow me on my socials, but remember this is NOT FINANCIAL ADVICE. I am making this content as a community member because it is great to learn crypto, playing on Solana is fun, and it is easy to onboard friends into the space with a game like this.
My opinions are my own; research more if you wish, and if you decide to degen, that is your decision!
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