Redeposit to earn

How it works

1. STEP 1
   Your stock

   AAPLx, SPYx or TSLAx supplied as collateral on Kamino.

2. ↓→
3. STEP 2
   Kamino (borrow USDC)

   You borrow USDC against it and pay the borrow rate (7.43% APY, as of the last check).

4. ↓→
5. STEP 3
   Kamino's stablecoin pool

   The borrowed USDC is supplied to Kamino's own USDC pool and earns the supply rate (6.03% APY).

6. ↓→
7. STEP 4
   Net carry

   Supply rate minus borrow rate: −1.41% a year on the redeposited amount.

Don't have the stock yet? Buy it here: AAPLx → · SPYx → · TSLAx →

Process & execution

1. 1
   Confirm your collateral position

   Provyn reads your real Kamino obligation per reserve, which asset is actually deposited, and its health factor, rather than trusting what anyone says is there.

2. 2
   Borrow USDC against it

   Sized against the asset's real loan-to-value limit, with a health factor of at least 1.5 as the conservative floor.

3. 3
   Supply USDC to Kamino's pool

   The borrowed USDC goes into Kamino's own stablecoin pool as a plain supply, earning the supply rate.

4. 4
   Monitor net carry

   The strategy only makes sense while supply APY is above borrow APY. Both are variable, so this is checked again, not assumed.

5. 5
   Withdraw and repay if carry turns negative

   When the carry is negative, as it is right now, the right move is to withdraw the supplied USDC and repay the loan, not to wait.

Risk overview

• Negative carryTRUE TODAY

  The borrow rate is above the supply rate right now (−1.41% net). You would pay to hold this position. Rates are variable and can move either way.

• Liquidation risk

  Your stock is collateral. If its price falls until your debt crosses the asset's liquidation threshold, Kamino can liquidate part of it, AAPLx 40% LTV / 50% liquidation, SPYx 73% LTV / 75% liquidation, TSLAx 55% LTV / 65% liquidation. Redepositing borrowed USDC does not add any collateral.

• Kamino smart-contract risk

  Both the borrow and the redeposit happen inside Kamino Lend. A bug, exploit or governance action there would affect this position, and Provyn cannot mitigate it.

• Pyth availability risk

  Provyn's own cross-check against Pyth is currently unavailable for equity and xStock feeds (our API key isn't entitled to them yet), so this is sized conservatively, and that's disclosed. Kamino's own oracle sets liquidation prices.

Your position

Contract addresses

Counterparties

• Kamino Lend ↗

  The lending market Provyn builds on: it holds your collateral, lends the USDC and liquidates positions that fall below their threshold. Provyn is a client of it, not a lender.

• Pyth Network ↗

  Oracle network Provyn cross-checks prices against whenever its feeds can answer. Kamino's own oracle sets the prices your position is actually liquidated against.

FAQ