Kamino launches Auto Rollover feature allowing fixed-rate borrowers to renew loans at same/lower rates, switch to variable rates, or enter gradual auto-repay.
DeFi & Yields ·
Kamino has rolled out Auto Rollover, a feature for fixed-rate borrowers on Solana that handles loan renewal automatically when terms expire. The mechanism offers three pathways: renewal at the same or lower rate if liquidity exists in matching reserves, conversion to variable rates if fixed-rate options dry up, or automatic repayment from collateral if neither option remains viable. Borrowers can disable this default behavior through position settings and must act before the end date, as a keeper bot executes the rollover during a per-market window that closes once the term concludes.
The rollover sequence prioritizes rate renewal first, resetting the term clock atomically if the current reserve has funds and no pending lender withdrawals. If that fails, the position moves to a variable-rate reserve for the same asset where available—a scenario where rates may exceed the original fixed rate. Should both options unavailable and the loan unpaid at term end, auto-repay activates, making the position increasingly liquidatable via a tiered mechanism that accelerates liquidator rewards over time. Borrowers can avoid auto-repay entirely by paying early.
Kamino is now applying this framework to additional markets and strategies. The first implementation uses the AUTO/wYLDS Fixed Rate Multiply vault, which loops HastraFi's AUTO token at a 5.3 percent fixed borrow rate on 30-day terms, with a 3-day rollover window preceding each expiration. Details on the mechanics, rollover failure modes, eMode restrictions, and early repayment penalties remain available in full documentation.