Leveraged Loops on Solana: How to Maximize Returns Without Selling

追加: 2026-06-03

[00:00:00]In this video, we're diving into a strategy that lets you earn more yield on the same capital without needing to constantly manage a position. It's called leverage looping, and Camino makes it super simple with a product called multiply. It's like yield farming on autopilot, except with leverage.

[00:00:14]Welcome back to the DeFi 101 course.

[00:00:16]This course is made with support from the Solana Foundation and is designed to take you from a crypto investor to a crypto user. Let's break it down. So, what exactly is leverage looping?

[00:00:25]Leverage looping is a DeFi strategy where you borrow against a yield-bearing asset and use that borrowed asset to buy more of the original yield-bearing asset. You repeat this loop until you've maximized your exposure and hopefully your returns. Think of it like buying a rental property using a mortgage and refinancing it to buy another and another, except all of it is happening automatically in a single transaction on chain. Camino wraps this whole process into a single product called multiply.

[00:00:48]You choose a vault, deposit funds, select your leverage, and Camino does the rest. Behind the scenes, Camino uses flash loans to amplify your position. E mode allows for higher loan-to-value ratios up to 90%. Smart [snorts] routing and collateral swaps are all handled for you on the back end. The result, you get leveraged exposure to yield-bearing assets like Jito SOL, mSOL, or even GLP with just one deposit. By the way, check out our other video in this course to learn more about GLP and how you can use it to earn yield. So, where is the yield in leverage farming coming from exactly?

[00:01:18]There are two main sources. First, staking yield from assets like Jito SOL or mSOL. And then second, market-making yield from Camino's k tokens, which earn fees in liquidity pools. Some multiply vaults like k Jito SOL SOL even combine both. And since your position is leveraged, your yield is amplified as long as the asset's yield is higher than the interest you're paying on the borrowed funds. That difference in interest is your net APY, and that's the number you want to watch if you're monitoring these positions. Let's go through an example with leveraging Jito SOL. Say you deposit 10 SOL into the Jito SOL SOL [snorts] multiply vault, and you choose 8x leverage. Your total exposure becomes 80 SOL worth of collateral, mostly in Jito SOL, and you now have 70 SOL in debt borrowed against your leverage position. If the Jito SOL staking APY is 7% and you're paying 6% borrow interest, your net yield is 1% on 80 SOL or 14% return on your initial 10 SOL. That is the power of multiply.

[00:02:11]Next, let's talk about how to open a multiply position. Opening a position is straightforward. First, select a multiply vault on Kamino, choose your deposit token like SOL or Jito SOL, set your target leverage, for example, 4x, 6x, 8x. Kamino will handle the flash loan, swap your token if needed, loop the position to your selected leverage, display your net APY and estimated returns, display your net APY and estimated earnings, and just like that, you're done. Your loop position is live.

[00:02:38]Now, how about managing your position?

[00:02:40]Kamino gives you full control. Use the manage tab to adjust leverage or position size at any time. You can also view simulations in the overview and my position tabs. Track your loan-to-value or LTV and net APY over time. You can also unwind your position at any time with one-click leverage adjustment. You can repay with collateral to downsize or close your position, or you can go manual clicking withdraw, swap, repay.

[00:03:03]There are no fees from Kamino for unwinding. Like all leverage strategies, this comes with risk. If your borrow rate exceeds your staking yield for too long, or if the asset drops sharply in price like JLP in USD terms, your position could be liquidated. Some other risks include smart contract exploits and LSTs or socialized losses if Kamino's lending platform took a hit.

[00:03:23]Auto de-leveraging is another risk, which may reduce your position if things get risky. Remember that the more leverage you use, the higher all of these risks become. Kamino does have auto de-leveraging, which will reduce your position if things get risky, but it's not a cure-all for these risks.

[00:03:39]Additionally, Kamino uses oracles to protect against de-pegs, so that is one less thing you need to worry about. But, remember, higher leverage equals higher risk. Always keep an eye on your LTV and net APY. That's it for Kamino's leveraged yield pools. You now know how to use farm leverage loops on Camino's multiply vaults. If the risk is within your comfort zone, this strategy can be a powerful way to maximize your on-chain yield.