The post Kamino seeing benefits from liquidity incentives on PYUSD appeared on BitcoinEthereumNews.com.

Howdy!  Death, taxes, and the Kansas City Chiefs getting extremely lucky at the end of football games. When will it end? It’s day two of the NFL season and I’m already resigned to my Buffalo Bills bowing out to Patrick Mahomes in the playoffs yet again. At least I have all our newsletter subscribers to keep me company: Kamino is Solana’s home for liquidity incentives PayPal’s PYUSD stablecoin has recently seen rapid growth on Solana. Much of the growth has been driven by Kamino, a newer DeFi platform where the majority of this activity is happening. Kamino, a borrow-lend protocol on Solana that began gaining real traction in late 2023, onboarded PYUSD with generous liquidity incentives in early July. Today, some $344 million PYUSD is held on Kamino, according to onchain data. This equates to 62% of the total supply on Solana. It’s easy to see why PYUSD grew so quickly on Kamino — it was offering 18% APY on the stablecoin for a time. This boosted yield wasn’t cheap. $500,000 is being spent weekly on PYUSD incentives, and this figure was hundreds of thousands of dollars higher a couple weeks ago.  A source with knowledge of the matter told me that these incentives are doled out by Trident Digital, a little-known firm that the stablecoin’s issuer Paxos taps for liquidity boosting services. I could not determine for certain whether the funds incentivizing PYUSD adoption were ultimately being paid for by PayPal or by the Solana Foundation.  But taking a broader look, PYUSD is not alone in spending for adoption on Kamino. In fact, eight of Kamino’s 10 highest-volume liquidity vaults have “incentives farms,” which appear to let projects front their tokens and let Kamino disburse them to depositors. Tons of Solana projects have done this: Jito, Marinade, Blaze, and…

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Filed under: News - @ September 6, 2024 6:18 pm