Today, we are excited to release further details on Kamino Season 4, as well as opening the Season 3 Allocation claims.
As before, Season 4 is aimed at driving usage across the Kamino product suite. Significantly, however, Season 4 will depart from “points” as the sole rewards mechanism.
Below, we link the Season 3 claim portal, while covering the Season 4 details, including the new rewards structure, KMNO staking boost system. Let’s dive in:
Season 4 Introduction
With over $4B assets deployed, Kamino has established itself as the most trusted, and largest DeFi platform on Solana (excl. staking). Since Kamino’s launch in September 2022, Solana itself has experienced astronomic growth—becoming the dominant ecosystem by user base and on-chain volume.
We believe that Solana, and Kamino itself, is entering its next phase of growth. With unprecedented demand from users, institutions, and asset issuers, Kamino is set for rapid product growth:
- Kamino Lend V2 has been live for one week, and V2 markets has gained over $130M supply and $50M borrows, with over $35M deployed into Lending Vaults (shown below)
- Kamino Swap is approaching $800M volume 8 weeks after launch
- Kamino will soon introduce its RWA/Institutional borrowing product line
With Season 4, the goal will be to encourage adoption across all these new product verticals, while continuing to reward productive usage of core activity such as borrowing and Multiply.
Kamino Season 4
Since the launch of Kamino Points in January 2023, Kamino has grown to dominate Solana Lending, with Kamino Points and KMNO staking playing a key part in this growth. Now, over 2 years later, we believe it’s time to revamp the rewards system, and most notably, to move on from Points as the sole rewards mechanism.
Kamino Season 4 will have a fixed duration, and fixed KMNO allocation. These will be announced at the Season 4 kick-off in the coming days.
Season 4 will pilot a completely new incentives structure, which we believe will enable more concentrated, and thus more effective growth for Kamino across specific product areas.
Monthly Rewards Structure
Each month in Season 4 will reward certain usage patterns on the app, with a fixed monthly KMNO allocation, distributed across specific products, announced at the start of each month—and subject to updates throughout the month.
As users deploy into rewarded products during Season 4, KMNO is added to their final Season 4 allocation in real-time. At the conclusion of Season 4, this allocation will be made claimable to users.
This monthly, real-time rewards structure has 2 key benefits:
1. Concentrated Rewards
Season 4 will be aimed at growing adoption and usage across new and existing products on Kamino. Kamino will collaborate with V2 vault curators, asset issuers and ecosystem teams to fuel product and feature launches throughout Season 4.
Via this new rewards structure, rewards not only become more dynamic from month-to-month, but can have far more impact on growth in key areas.
2. Rewards Transparency
As the KMNO allocation is fixed for each month, with specific reward avenues, users will see the direct impact of rewards on the APY of a product, and can see their real-time rewards accruing to their Season 4 allocation.
For example, if rewards worth 2% APY are active on a V2 Lending Vault with 10% APY, the user will see 12% APY in the UI—thereby providing full transparency on rewards earned.
KMNO Staking
Since the launch of KMNO Staking in Season 2, users have earned substantial boosts to their KMNO points via the staking mechanism. The system was simple: the more you stake, and the longer you stake, the more points you earn. As discussed in the Season 3 allocation article, users could boost their Season 3 points by up to 200% via KMNO staking (shown below).
As with previous seasons, Season 4 will continue to benefit users who stake their KMNO while using Kamino’s products. The structure will work as follows:
Season 4 KMNO Staking Structure
KMNO Staking in Season 4 will act as a USD value multiplier, with your boost factor determining how much your position value is multiplied.
We’ll cover in-depth examples below, but here’s a summary of how it works:
How to Earn Staking Boost
- Users start with a 0% boost on their position (except if you’ve already accrued staking boosts in previous Seasons—covered below)
- For each day you remain staked, you accrue 0.5% staking boost
- If you retain or increase your stake amount throughout an entire month, you receive an additional, permanent loyalty boost at the end of the month
How Staking Boosts Work
- Your boost % applies to the USD value you have in the protocol
- For each 1 KMNO you have staked, your boost % applies to $1 of your funds
- For example, if you have 100,000 KMNO staked, your boost % will apply to $100,000 of your portfolio value
If you have $100,000 deposited with a staking boost of 50%, your $100,000 is effectively worth $150,000 for the monthly rewards calculation.
Staking Boost Examples
Below we walk through 3 examples:
Example #1
- You have $100,000 in Kamino
- You have 100,000 KMNO staked
- You have a 50% staking boost
- Your entire $100,000 is deployed into a position with active monthly rewards
- Rewards APY = 5%
Base monthly reward: 5% APY * $100,000 / 12 = $416
Boosted monthly reward: 5% APY * $150,000 = $625
In this scenario, you earn the full boosted amount on your total position amount.
Example #2
- You have $100,000 in Kamino
- You have 100,000 KMNO staked
- You have a 50% staking boost
- $50,000 of your funds is deployed into a position with active monthly rewards
- Rewards APY = 5%
Base monthly reward: 5% APY * $50,000 / 12 = $208
Boosted monthly reward: 5% APY * $75,000 = $312.5
In this scenario, you earn the full boosted amount on the portion of your funds that is deployed into a position with an active monthly reward.
Example #3
- You have $100,000 in Kamino
- You have 50,000 KMNO staked
- You have a 50% staking boost
- $100,000 of your funds is deployed into a position with active monthly rewards
- Rewards APY = 5%
Base monthly reward: 5% APY * $100,000 / 12 = $416
In this scenario, you only have 50,000 KMNO staked, whereas you have $100,000 deployed into a position with an active monthly reward. Thus, in this case, your 50% staking boost applies to only $50,000 of your position.
In effect, your total position size is $50,000 + $75,000 = $125,000
Boosted monthly reward: 5% APY * $125,000 = $520.
Season 3 Claim
Users can claim their Season 3 allocations here.
Note that unstaking KMNO will fully forfeit your Season 4 staking boost