Introducing Kamino Institutional Yield. Purpose-built on-chain vault infrastructure connecting real-world, institutional credit markets with on-chain users. Commodity Yield, the first vault built on this infrastructure, is now live. Initial deposit capacity: $25M USDC.

Institutional Commodity Yield connects on-chain users with real-world demand for institutional commodity trade financing - an institutional credit market that has historically been inaccessible to retail - targeting ~7-8% returns. The vault services commodity trade with strict lending criteria, continuous portfolio transparency, and an off-chain lending operation implemented through an approved fund structure supervised by the Cayman Islands Monetary Authority (CIMA). Read the full announcement linked below for more detail.

To understand how the Commodity Yield vault works, there are two core concepts to understand. 1. The commodity trade financing flow, and how it generates a return 2. How funds move from vault into the trade, and how funds return to the vault We’ll illustrate this below using a copper trade as an example.

The financing flow: 1) A trader locks in both sides of a deal: A copper trader signs two contracts at the same time: he sells copper to his client for $10 million, and he buys that copper from a wholesaler for $9 million. Both prices are fixed before any money moves, so the trade is structured to lock in the trader's margin from day one, following through on the contractual relationship between both parties. 2) The settlement gap appears: The wholesaler will not ship millions of dollars of copper on a promise, and the end client will not pay until his copper has arrived and has been quality-checked. Someone has to fund the weeks in between. 3) The Commodity Yield vault provides the financing: Through an SPV and fund structure, funds are lent to the trader to finance the trade. The cash sits in a segregated escrow account where the wholesaler can see it, and that is what gives him the confidence to ship. > The goods travel insured. The copper crosses the ocean covered by all-risk cargo insurance. If the ship sinks, the insurance pays, with the financing entity named as loss payee - giving direct standing to claim if the shipment is lost or damaged in transit. 4) Delivery releases the money. When the copper arrives and passes independent inspection, the escrow releases the funds to the wholesaler, and the end client pays his contracted $10 million. 5) The loan is repaid. The trader repays the loan plus interest, and that interest is the yield that flows back to the vault.

The vault funds flow: 1) Deposit USDC and receive kicUSDC; these vault tokens track the depositor's share of the vault as it accrues interest. 2) Capital is deployed through an approved fund structure supervised by CIMA into short-term Commodity Loans. 3) Every loan is fully collateralized by physical commodities and/or 1:1 by cash escrowed with tier-1 banks. 4) As loans are repaid, yield accrues to the vault and user share value appreciates. Withdrawals are instant within the liquidity buffer, with larger requests settling as loans mature.

Read the full announcement: Disclaimer: Targeted yield is not guaranteed and depends on loan performance; deposited capital may be partially or fully lost. Not a bank deposit, not insured. Subject to Kamino's T&Cs and geo-blocking — not available in restricted jurisdictions. Informational only, not investment/legal/tax advice. Full risk disclosure:

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Big

@y2kappa Love to see it! More soon!

Cool

worth reading

Transparent infrastructure is exactly what institutional adoption needs

_great news Kamino!

The future of finance is here

🤯

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this is the kind of utility that actually moves the space forward.

Big Huge Massive

This is proper infrastructure. Bringing institutional commodity yield on-chain with real underlying assets is exactly the kind of step Solana needs. $25M initial capacity is a solid start. Watching closely.

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this is the kind of rwas that actually make sense onchain

always delivering, keep shipping guys

Nice to see real world credit come onchain like this

Awesomeness ! Long believed in DeFi Credit Scores becoming a thing, and this just makes something like that much more possible!

onchain credit finally starting to look like actual financial infrastructure instead of just another tokenized asset narrative

Yield is becoming a product, not just a protocol. That’s exactly the direction wealth is headed.

Bringing real-world credit markets on-chain is a major step for DeFi. Institutional adoption will be much stronger when transparency, reporting, and risk management are built in from day one. 📷

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Bringing institutional credit on-chain with an overcollateralized structure is a meaningful step for DeFi. Strong risk frameworks will be key to unlocking the next wave of adoption.

Gmino 🫶🏼

@LiquidiumFi is better

Is it protected/insured? What happens in case of hack?

finally some real yield with actual structure behind it not just another ponzi wrapped in code cima oversight and cargo insurance? now we're playing for real