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Kamino Liquidity Vaults automate the three main tasks that make concentrated liquidity management burdensome: single-token deposits and withdrawals (auto-swap), fee reinvestment (auto-compound), and range adjustment (auto-rebalance).

Auto-Swap

Concentrated liquidity positions require assets in a specific ratio matching the pool’s composition. When a user deposits a single token, Kamino automatically swaps the portion needed to create the correct ratio before deploying capital. The same process applies on withdrawal — users can receive the full position value in a single token rather than being forced to handle both assets separately.
  • No manual token management required for single-sided deposits or withdrawals
  • Swap costs (slippage, DEX fees) apply — visible before confirmation
  • Powered by Kamino Swap for best execution

Auto-Compound

CLMM positions accumulate trading fees and reward tokens continuously. Manually harvesting and redepositing these would require frequent transactions and actively managed timing. Kamino auto-compounds all earned fees and rewards back into the position at regular intervals. Compounding:
  • Increases the total capital deployed in the vault
  • Directly increases the kToken exchange rate over time (more underlying assets per kToken)
  • Eliminates the need for manual harvest transactions and their associated gas costs

Auto-Rebalance

When the market price moves outside a vault’s current range, the position earns no fees. Kamino monitors positions continuously and rebalances when the price exits the configured range — moving the position to a new range centered around the current price. Rebalancing events:
  • Trigger when price exits the vault’s range
  • Involve closing the current position and reopening at a new range
  • May incur a small cost from slippage on the conversion between assets at the rebalance ratio
  • Are executed by Kamino’s automated bots — no user action required
The frequency and cost of rebalancing depends on price volatility and range width. Tighter ranges earn higher fees when in-range but rebalance more often; wider ranges rebalance less frequently at the cost of lower capital efficiency.