> ## 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. # Liquidity Vaults > Automated liquidity solution for earning yield on concentrated liquidity DEXes ## Introduction Kamino's liquidity vaults are an automated liquidity solution that allows users to earn yield on their crypto assets by providing liquidity to concentrated liquidity market makers (CLMMs). ## How do you earn yield in Kamino vaults? A Kamino vault deploys liquidity into an underlying DEX pool, consisting of 2 tokens. When you deposit into a vault, you earn fees from trading volume. In other words, if you deposit into a pool with Asset X and Asset Y, any token swaps that utilize that pool will incur a small cost to the swapper. As a Kamino depositor, you earn from that swap fee. ## Automating Concentrated Liquidity (CLMM) DEXes CLMMs are exponentially more capital-efficient than traditional automated market makers (AMMs). However, this efficiency also adds complexity and users can rarely harness the full potential of providing concentrated liquidity due to: * Price volatility and increased risk of impermanent loss (IL) * Inefficiently set ranges * Manual range management * Manually harvesting and redepositing fees/rewards All of the above ultimately comes at the cost of effectiveness and convenience. ## How Kamino solves the Liquidity Dilemma Kamino automates the entire LP process and optimizes capital efficiency & yields through: * **Automated position rebalancing** - Continuously adjusts liquidity ranges for optimal performance * **Auto-compounding trading fees & additional incentives** - Reinvests earnings back into your position * **Auto-swap for single-sided deposits & withdrawals** - Deposit or withdraw with any token balance Additionally, Kamino gives you a fungible kToken as a receipt for your deposit. This means that, after depositing into a Kamino vault, you can use your kToken in DeFi. To fully appreciate the evolution that Kamino brings, you need to understand the value of concentrated liquidity market makers (CLMMs).