Kamino (@kamino): PRIME on Kamino: Leveraging Home Equity Yields on Solana

PRIME on Kamino: Leveraging Home Equity Yields on Solana Kamino's PRIME Market by @HastraFi/@Figure has grown to over $380M in size since launch, with PRIME deposits approaching the $200M mark. This growth has been fueled primarily by the Multiply vaults for PRIME/CASH and PRIME/USDC respectively, which enables users to leverage their PRIME exposure up to 8x, in a single click. PRIME: Tokenized Home Equity Loans on Solana PRIME is a yield-bearing token developed in partnership with @HastraFi, @Figure, and @provenancefdn - consistently delivering ~8% APY . PRIME yield is generated through Figure’s Democratized Prime lending protocol, where lenders earn yield by lending against pools of tokenized Home Equity Lines of Credit (HELOCs), originated by Figure Figure is the largest non-bank HELOC provider in the US with over $19 billion in on-chain loan originations to date Via PRIME Multiply, you can increase your exposure to PRIME yields, while retaining 100% PRIME exposure. Ultimately, this can enable users to earn higher yields than they would by simply holding PRIME. Below, we dive into the data on how impactful PRIME Multiply can be for users, but here's a quick TL;DR: TL;DR PRIME/USDC Multiply: 8.00% → 12.05% (4x) / 17.45% (8x) Net APY (i.e. 48% boost at 4x, 110% boost at 8x vs base PRIME APY) PRIME/CASH Multiply: 8.00% → 14.60% (4x) / 23.40% (8x) Net APY (i.e. 78% boost at 4x, 175% boost at 8x vs base PRIME APY) Below, we cover 2 core topics: How PRIME Multiply enables boosted yields How much yield users can gain over time at different leverage levels, given current rates How PRIME Multiply Works Multiply is a one-click leverage product that boosts a user’s exposure to a yield-bearing asset. In the case of PRIME, this is enabled by supplying a yield-bearing asset (i.e. PRIME) as collateral, borrowing a stablecoin (eg. USDC or CASH), swapping the borrowed asset back into PRIME, and repeatedly looping this position. The larger the gap (delta) between the yield-bearing asset APY and the borrow APY, the more profitable the loop becomes for the user. Thus, leverage on PRIME allows users to increase exposure to this delta and amplify yield. PRIME Multiply Leverage Impact Below, we look at the APY and performance impact across the respective PRIME Multiply loops: 1. PRIME/USDC Multiply At present, PRIME/USDC Multiply has Net APY: At 4x Leverage: 12.05% Net APY At 8x Leverage: 17.45% Net APY Thus, 4x leverage in PRIME/USDC Multiply enables ~48% more yield vs simply holding PRIME at its 8.00% base APY Or, compared to simply holding PRIME, users earn ~110% more by leveraging 8x in PRIME/USDC Multiply. In the projected 30-day position value increase: 4x Leverage → 0.94% projected 30D gain 8x Leverage → 1.33% projected 30D gain 2. PRIME/CASH Multiply At present, PRIME/CASH Multiply has Net APY: At 4x Leverage: 14.60% Net APY At 8x Leverage: 23.40% Net APY Thus, 4x leverage in PRIME/CASH Multiply enables ~77.5% more yield vs simply holding PRIME at its 8.00% base APY Or, compared to simply holding PRIME, users earn ~175% more APY by leveraging 8x in PRIME/CASH Multiply. In the projected 30-day position value increase: 4x Leverage → 1.13% projected 30D gain 8x Leverage → 1.74% projected 30D gain Across both vaults, using PRIME Multiply to boost yields leads to a substantial boost on PRIME positions. Utilization Caps to Preserve Yields Significantly, utilization caps in the PRIME Market (on top of which PRIME Multiply vaults are built) are specifically set to ensure that borrow rates cannot spike to unprofitable rates by additional borrows. This serves as a built-in guardrail that prevents borrow demand from eating into PRIME Multiply yields.