---
type: claim
claim_id: internet-finance-kamino-vaults-95-percent-lst-sol
title: Kamino vaults captured 95% of Solana LST-SOL liquidity as of March 2025 because users require automated position management
description: As of March 2025, Kamino's automated liquidity vaults held 95% of all LST-SOL liquidity on Solana, attributed to users' need for automated concentrated liquidity position management rather than manual rebalancing.
domains:
  - internet-finance
tags:
  - solana
  - kamino
  - liquidity-vaults
  - concentrated-liquidity
  - lst
confidence: experimental
status: active
created: 2025-03-12
modified: 2025-03-12
---

# Claim

Kamino vaults captured 95% of Solana LST-SOL liquidity as of March 2025 because users require automated position management.

# Context

This claim originates from a Sanctum governance proposal advocating for liquidity incentives. As a governance proposal, this is an advocacy document designed to justify spending decisions rather than neutral research.

This represents a point-in-time market observation from early March 2025 that could change rapidly as market conditions and competing products evolve. The 95% figure should be understood as a market snapshot rather than a stable equilibrium.

The causal explanation (users require automation → vaults dominate) could also run in reverse: vaults dominating the market may prevent users from developing manual LP skills, creating path dependency rather than revealing fundamental user preferences.

# Evidence

From the Sanctum governance proposal:

> "95% of all LST-SOL liquidity is in Kamino vaults. This is because users require automated position management for concentrated liquidity pools rather than manual rebalancing."

The proposal uses this observation to argue that incentives should be directed toward Kamino vaults rather than direct liquidity pools.

# Limitations

- Single source (governance proposal/advocacy document) rather than independent verification
- Point-in-time observation from March 2025; market share could shift rapidly
- Causal attribution (users require automation) is inferred rather than demonstrated
- No data on user preferences or comparison with manual LP performance
- Alternative explanation (market dominance creates path dependency) not ruled out
- No breakdown of which specific LST-SOL pairs or protocols are included

# Relevant Notes

- [[sanctum-claims-15-percent-apy-is-industry-standard-for-incentivized-liquidity-provision-on-solana]]
- [[inf-sol-kamino-vault-outperformed-inf-hodl-through-high-trading-volume-relative-to-tvl]]

# Topics

- [[solana]]