The DeFi platform Kamino Finance, built on the Solana blockchain, is paying crazy returns to liquidity providers of the W-jitoSOL pool composed of the governance token of Wormhole and the liquid version of the Solana coin.
Lately the protocol has offered a yield of 999%, with about 3,300 W and 666 JTO paid out every day to LP token holders.
Attention, we are not talking about annualized returns but about 7-day returns!
All the details below.
Summary
Yield crazy paid on Solana: Kamino Finance offers 999% per week for the W-JitoSOL token pool
Attention of liquidity miners is currently focused on the DeFi Kamino Finance application, developed on top of the Solana blockchain, where very attractive economic incentives are currently available.
Let’s talk about the liquidity pool composed of W tokens from the Wormhole interoperability platform and jitoSOL, the liquid version of SOL staking managed by the Jito protocol.
Basically, anyone who decides to block the two cryptocurrencies on Kamino, feeding liquidity for traders’ exchanges on DEX, can benefit from a yield equal to 999% per week paid in W and JTO.
Overall, in the last week more than 23,330 W and 4,660 JTO have been paid in commissions, equivalent to just under 50 thousand dollars.
In the world of decentralized finance, yields like these are not new, in fact many projects in the past (especially on the BSC network) offered stellar annualized returns on highly inflationary tokens.
In this case the oddity is that the yields are not annualized but weekly, and at the same time the tokens in question have a potentially bullish price action.
As shown by the data on Kamino, the pool can accommodate a maximum of 7.5 million dollars and has locked up to now 5.09 million dollars.
Furthermore, in the last 24 hours it has acquired commissions for $17,000 on trading volumes of $6 million.
In order to take advantage of this opportunity, it is necessary to have a wallet that supports the Solana standard (Phantom, Solflare, Bitget Wallet) and have both the W and jitoSOL currencies available, both of which can be found on the decentralized market Orca Finance or on Raydium.
Furthermore, it is worth remembering that by having jitoSOL, you automatically enjoy another yield of 8.14%, paid by the liquid staking of the Solana coin directly on Jito.
It’s amazing how DeFi platforms are increasingly intertwining with each other, offering very interesting investment opportunities.
Analysis of the prices of crypto W from Wormhole and JTO from Jito
A good liquidity provider worth its salt tends to bet on pools where the tokens inside show a bullish price action in the short/medium term.
By doing so, the user gains on one side from the appreciation of the currency, and on the other from the yield offered by the protocol.
If the two cryptos fall, the yields of liquidity mining may not make up for the value lost in the markets.
In the case of the pool presented in the previous paragraph, composed of Womrhole W tokens and the liquid token jitoSOL, there are good hopes that both resources may increase in value in the coming days.
In particular, we see how the Wormhole coin, launched yesterday through an airdrop to early users of the cryptographic community, shows a good price support zone around the $1.1 level.
The overall outlook of a bullish market could lead W to seek new highs in the coming days, pushing traders to trade a token that had been highly anticipated for months.
Obviously, the price action of W could also lead to negative surprises, considering that the market capitalization of the currency is already above 2 billion dollars. Let’s expect a lot of volatility in the coming days for this crypto.
Analysing instead jitoSOL, which essentially replicates the trend of SOL, we notice the presence of a demand zone around $190 that could help support the price of the coin in the coming weeks.
With a strongly bullish trend behind it, jitoSOL could go in search of new highs if the Bitcoin market accompanies with positive trends.
Given the dynamics at play, it is possible that the upward trend of this crypto may temporarily stop within the trading range of 185-220 dollars, where an ideal strategy would be to go long on the lows and short on the highs.
However, the situation seems to be more towards a continuous appreciation of the currency based on Solana, unless prices were to fall below $180 in the short term, opening up still unexplored bearish scenarios.
