JTO Liquidity Program

JTO Liquidity Program Retrospective

The JTO-JitoSOL locked liquidity vault proved to be very popular, reaching over $8m TVL at times, and amassing over 1200 unique depositors. The liquidity program has also cemented JTO-JitoSOL as the flagship on-chain liquidity for Jito’s governance token JTO, and it is fully community bootstrapped.

This locked liquidity vault had a novel and unique model. It was non-dilutive, meaning that depositors earned a fixed amount of JTO relative to the JTO in their position (1 JTO earned for every 12 JTO staked). Given that the users were staking kTokens, and not JTO directly, their emissions were growing or shrinking as the JTO-JitoSOL asset ratio changed, as this fluctuation also affects the amount of JTO in the position.

As the 30-day period progressed, depositors earned more JTO daily because the price of JTO gradually dropped relative to JitoSOL, thus increasing the amount of JTO in the position.

This model achieves non-dilutive emissions, as the same amount of JTO is earned by each wallet per JTO in their position, no matter how many others deposited into the vault. The JTO rewards per wallet depends purely on a user's own deposits, instead of how much their share is relative to the entire pool.

Furthermore, while TVL estimations were met, they were achieved with a much higher than-expected price of JTO. Therefore, the max allocation of 600k JTO to be distributed was not reached, because there was considerably less JTO deployed into the vault than would have been the case had JTO traded at pre-launch price estimates given the same TVL.

Given the novel product, community feedback clearly expressed a need for more a more comprehensive explanation of the mechanism. We value this feedback and will provide extensive product explainers for future liquidity-locking vaults.

Overall we’re stoked to be continuing to support JTO and to collaborate with Jito to evolve this product going forward!

Thanks to our collaboration with Jito, we will continue to reward JTO-JitoSOL depositors, now using a "standard" incentive farm model:

Unlocked like any standard Kamino vault: users can deposit/withdraw as they please
75,000 JTO starting Jan 6th will be distributed via a Kamino farm as incentives to depositors
These will be distributed like in other Kamino farms, proportional to TVL. eg. If you are 10% of the vault for the next 30 days, you receive 10% of the JTO eg. 7.5k JTO

Vault Link

How It Works

Kamino Farms enables to users to earn incentives by providing liquidity. When depositing into a vault with an underlying farm, your LP tokens are automatically staked into the farm. Thus, by depositing into a farm, you become eligible for rewards.

In addition to rewards, you also earn auto-compounded trading fees from the underlying DEX. These trading fees are auto-compounded into your position, and do not need to be manually claimed.

When depositing into a Kamino Farm, you will not receive a kToken in your wallet, instead your kToken is automatically staked into the farms program.

1. How to Deposit

Go to the Vault page
Select JTO or JitoSOL Deposit amount
Click Deposit & Stake

This will auto-stake into the farms program and you will begin earning rewards.

2. How to Claim Rewards

Go to Vault page
Select My Positions tab
Click "Claim JTO"

3. How to Withdraw

Go to Vault page
Select "Unstake" in the dropdown menu on the top right, move slider to the desired withdrawal amount, then Unstake
Select "Withdraw" in the dropdown menu on the top right, then select desired withdrawal token, and withdrawal amount

JTO Locked Liquidity Program (CONCLUDED)

Overview

Kamino is a key liquidity venue for the JTO token launch by Jito. To reward users for contributing to JTO liquidity, depositors will be earning JTO rewards for locking their liquidity into a JTO-JitoSOL vault on Kamino.

This lock-up period will start when the JTO airdrop becomes claimable on the Jito Airdrop page, and will continue for 30 days from the moment that the airdrop is live. During the 30-day lock period, the JTO tokens will be distributed to all participants, instantly claimable in the vault page.

Throughout the lock period, deposited liquidity will earn auto-compounded trading fees via Kamino's automated market-making infrastructure. Once the 30-day lock period is over, liquidity will be unlocked, and users can opt to either continue earning fees, or withdraw their funds from the vault.

Kamino's Locked Liquidity smart contract is audited and open-source

Liquidity Lock Overview

Duration: 30 Days

Maximum Rewards: 600,000 JTO

Vault: JTO - JitoSOL

Rewards Schedule: Constant rate

Depositing Liquidity

After claiming their JTO on the Jito Airdrop page, users can deposit their liquidity in the JTO-JitoSOL vault. This will require the user to deposit both JTO and JitoSOL.

Once deposited, user liquidity will remain locked for the duration of the 30-day lock-up period. While deposited, users can claim their JTO rewards on an ongoing basis right on the vault page. Depositors will earn JTO rewards, as well as automated trading fees that will auto-compound into their positions (read more about how Kamino vaults work here).

How JTO Rewards Work

JTO will be awarded at a constant rate, proportional to JTO in the pool during the lockup period. A step function will also be used - meaning that earlier depositors will earn a larger amount of rewards as the rate of emission is stepped down during days 1 - 4 from a 5x boost on day 1. Depositors will be awarded JTO according to their share of the pool, thus larger LPs will earn a larger part of the reward.

Claiming Your JTO

JTO rewards will be claimable on the vault page.

Once the 30-day lock-up period is over, depositors can choose to keep their liquidity deposited in the vault, where it will continue to earn trading fees.

If you have any questions, join the Kamino Telegram

Note that depositing into the JTO-JitoSOL Vault means that you have price exposure to both JTO and JitoSOL. Please read through the liquidity vault risk section to familiarize yourself with the risks of liquidity provision.

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Last updated 4 months ago