15 hours ago
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Key Takeaways
- Commodity Yield targets approximately 7% to 8% and opened with a $25 million deposit cap.
- Depositors receive kicUSDC, representing their share of the vault and its accrued yield.
- Withdrawals depend partly on loans being repaid, so immediate access is not guaranteed at every size.
- The higher target return comes with offchain legal, operational and counterparty risks.
For users already moving USDC between DeFi lending markets in search of better returns, a target yield of 7% to 8% will immediately stand out.
Kamino’s new Commodity Yield vault offers that return by financing short-term commodity trades rather than lending against crypto collateral. Users keep an onchain position through Solana, but the money ultimately depends on commodity traders, banks, escrow agents, insurers and legal agreements operating outside the network.
That is the central trade-off. Depositors gain access to a form of institutional credit that is normally difficult for individuals to reach, while giving up some of the liquidity and transparency ass...
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