# Rates & Boosts

Our points system is highly customizable, enabling us to reward productive protocol activity. Ultimately, the points system is geared towards users who use Kamino to service their DeFi needs.

## Default Rates

Default rates are:

Kamino Lend Supply: 1 point per dollar per day

Kamino Lend Borrow: 1 point per dollar per day

Kamino Liquidity Vaults: 1 point per dollar per day

## Boosts

Default boosts are shown in the Rates & Boosts tab in the Points Hub

Your `Avg Boost`

displays an overall value across your entire portfolio, calculated as a weighted average across all positions.

Boost = How many points you earn daily per dollar deposited.

#### Example

$500 USDC Supplied

$1,000 mSOL Supplied

mSOL Rate = 1 point per dollar per day

USDC Rate = 3 points per dollar per day

The system can accommodate boosts for virtually any action on the protocol, including different collateral/debt combinations. There can even be NFT or DeFi-related boosts from beyond the Kamino dApp, rewarding users for certain actions/NFTs across the Solana ecosystem.

We're getting everyone involved!

## OG Points

We wanted to find a solution that was fair to our OG users, the bear market brethren that walked through fire with us on Solana. The best way we could think of was to account for every drop of liquidity provided since launch.

Points were split into two eras: Pre and post-Kamino Lend Beta

All positions from the launch of Kamino in August 2022, up to the Kamino Lend beta launch in October 20th 2023, have been awarded **2x Points per day** for their deposits over that 400+ day period.

## Limitations on Farming

Just as we can reward certain actions, we can also limit the point-earning rates of other actions or asset combinations. Ultimately, the points program aims to attract new users who find value in using the product.

Here are the steps we've taken to ensure fairness:

### LST/LST or Stable/Stable Farming

We limit the points earned by positions with only LSTs on both the collateral & debt side, as well as positions with only stablecoins on both the collateral & debt side.

Positions like these will only earn points on the supply side, and only from the net dollar value, where `net_value = LST_collateral - LST_debt.`

**Example**

**Example**

$1,000 mSOL Supplied

$300 bSOL Borrowed

Typically this user would earn:

`Supplying: 1 * $1,000 = 1,000 points per day`

`Borrowing: 1 * $300 = 300 points per day`

Thus, at default rates, the user would earn `1,300 points per day`

.

With the farming limitation, the position earns:

`1,000 - 300 = 700 points per day`

**LST/LST or Stable/Stable Farming With Other Tokens**

**LST/LST or Stable/Stable Farming With Other Tokens**

The system also limits the points earned by supplying an LST/Stable alongside another collateral asset, and borrowing an LST/Stable against it. In this scenario, the LST/stable supply and borrows are netted out first.

Any remaining LST/stable collateral/debt amount then accrues the standard points per day rate:

**Scenario 1**

**Scenario 1**

If `LST_supplied > LST_borrowed`

, the position earns supply points according to the net difference. The position earns no borrow points for the LST debt.

#### Example #1

$500 mSOL Supplied

$500 USDC Supplied

$300 JitoSOL Borrowed

Typically this user would earn:

`Supplying mSOL: 1 * $500 = 500 points per day`

`Supplying USDC: 3 * $500 = 1,500 points per day`

`Borrowing JitoSOL: 1 * $300 = 300 points per day`

`= 2,300 points per day`

**With Limitation:**

Net difference of LSTs in the position is first calculated.

`net_value = LST_collateral - LST_debt = $500 (mSOL_supplied) - $300 (JitoSOL_borrowed) = $200 (net_value)`

Global Supply Rate: 1 point per dollar per day

Thus, net value of LSTs in the position earns

`1 * $200 = 200 supply points per day`

No borrow points are awarded for JitoSOL as it has been netted out.

**Total Position earns:** `1,500 + 200 = 1,700 points per day`

**Scenario 2**

**Scenario 2**

If `LST_supplied < LST_borrowed`

, the position earns borrow points according to the net difference. The position earns no LST supply points.

#### Example #2

$300 mSOL Supplied

$500 USDC Supplied

$500 JitoSOL Borrowed

Typically this user would earn:

`Supplying mSOL: 1 * $300 = 300 points per day`

`Supplying USDC: 3 * $500 = 1,500 points per day`

`Borrowing JitoSOL: 1 * $500 = 500 points per day`

`= 2,300 points per day`

**With Limitation:**

Net difference of LSTs in the position is first calculated.

`net_value = LST_debt - LST_collateral = $500 (JitoSOL_borrowed) - $300 (mSOL_supplied) = $200 (net_value)`

Global Borrow Rate = 1 points per dollar per day

Thus, net value of LSTs in the position earns

`1 * $200 = 200 borrow points per day`

Supply points are awarded only for USDC as the mSOL supply has been netted out: 3

`* $500 = 1,500 supply points per day`

**Total Position earns:** `1,500 + 200 = 1,700 points per day`

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