This page explains the structural and economic concepts that shape how a curator should think about fixed-rate reserves. If you’re new to fixed rates, read this before Allocations.Documentation Index
Fetch the complete documentation index at: https://kamino.com/docs/llms.txt
Use this file to discover all available pages before exploring further.
The rate grid
A single market now serves each debt token through multiple reserves:- One floating-rate reserve — rate fluctuates with utilization (existing behaviour)
- Zero or more fixed-rate reserves — each with a constant borrow rate and a fixed term, e.g.
USDC 5.0% 1M,USDC 5.5% 3M,USDC 6.0% 6M
| Rate | 1 month | 3 months | 6 months | 12 months |
|---|---|---|---|---|
| 5.0% | USDC 5.0% 1M | USDC 5.0% 3M | — | — |
| 5.5% | — | USDC 5.5% 3M | USDC 5.5% 6M | — |
| 6.0% | — | USDC 6.0% 3M | USDC 6.0% 6M | USDC 6.0% 12M |
| 7.0% | — | — | USDC 7.0% 6M | USDC 7.0% 12M |
USDC 5.5% 3M has no interaction with USDC 6.0% 6M. A large repayment or withdrawal in one reserve does not affect liquidity in adjacent ones.
The allocations UI shows reserve type, rate, term, supply APY, TVL, and utilization for each reserve. Use those as your primary allocation signals.
Term premium and the emerging yield curve
The rate grid creates a visible, on-chain term structure: what the market currently prices for 1-month, 3-month, 6-month, and 12-month USDC lending. This is the yield curve for that debt token. The term premium is the additional yield lenders require to commit capital for a longer duration. If 3-month USDC clears at 5.0% and 6-month clears at 5.5%, the term premium for the additional 3 months is 50 bps — compensation for reduced liquidity and increased uncertainty over the longer horizon. For curators, the practical implication: the longer cells of the grid tend to clear at higher rates. If your depositor profile tolerates duration, the marginal yield is there. Reading the grid across maturities (1M → 3M → 6M → 12M) shows where the market currently prices duration. To act on a signal — add or expand an FR allocation — see Allocations and Configure allocations.How borrowers take fixed-rate liquidity
Two independent paths bring borrow demand into a fixed-rate reserve. Your allocation responds the same way to either.Direct borrow
A borrower with sufficient collateral sees available liquidity in the fixed-rate reserve and borrows it in a single atomic transaction. This is the same flow as borrowing from any reserve — there is no “order” sitting on-chain, no standing intent. The borrower acts now: collateral posted, debt taken, transaction lands in one slot. For a curator, this means:- A Standard allocation is immediately usable by direct borrows from the moment it lands.
- A Conditional allocation can also satisfy a direct borrow — the vault’s atomic-fill path triggers as part of the borrow transaction, moving capital from a floating source into the FR reserve and serving the borrow in one shot.
Borrow order
A borrower posts a standing intent: “I want to borrow X tokens at a max rate of Y for at least Z duration, fillable until T.” The order doesn’t borrow anything yet — it sits on-chain until matching reserve liquidity is available, at which point a fill bot (or anyone, since the fill instruction is permissionless) executes the borrow on the borrower’s behalf. Borrow order parameters:| Field | Meaning |
|---|---|
debtLiquidityMint | Token the borrower wants |
requestedDebtAmount | Originally requested size |
remainingDebtAmount | Still unfilled |
maxBorrowRateBps | Ceiling rate the borrower accepts |
minDebtTermSeconds | Minimum acceptable term (0 = open-term only) |
fillableUntilTimestamp | Expiry |
filledDebtDestination | Borrower-owned token account where filled funds land |
5.5% / 6M is the market telling you there’s appetite at that cell. Adding capacity there (Conditional or Standard) lets your vault capture the fill — see Allocations for the FR-specific allocation guidance, and Configure allocations for the workflow.
Why FR yields can be higher
The general yield formulaSupply APY ≈ Borrow Rate × Utilization × (1 − Protocol Take Rate) is covered in Concepts → Yield & fees. The FR-specific observation:
Fixed-rate reserves can run at high utilization when matched with active borrow demand. At 100% utilization, the × utilization factor disappears and lenders earn the borrow rate net of the protocol take for the full term:
- A floating reserve at 70% utilization paying a 6% borrow rate passes roughly 4.2% to lenders before protocol take.
- A fixed reserve at 100% utilization paying 5.5% passes 5.5% × (1 − take rate) for the locked duration.
What’s next
Allocations
Standard vs. Conditional in the FR context, fill mechanics, priority, setup.
Lifecycle
What your capital experiences from fill through exits.