Press Release LONDON, UK | AUGUST 30, 2022 – Kamino Finance is the first concentrated liquidity market maker (CLMM) optimizer built on the Solana blockchain, and it was released by Hubble Protocol, the company behind the USDH stablecoin.
Initially available on the next-generation decentralized exchange (DEX) Orca, Kamino Finance will enable customers to automatically earn better yields by storing their cryptocurrency in vaults connected to the DEX’s liquidity “whirlpools.”
Kamino Finance improves upon the benefits of CLMMs by restricting the price band in which users contribute liquidity, hence reducing slippage and enabling larger trades.
Common problems for CLMM liquidity providers are eliminated by Kamino’s ability to automatically modify positions to the optimal range, hence maximizing fee capture and liquidity depth (LPs). Kamino also reinvests CLMM fees and rewards into customers’ LP investments automatically, increasing returns as positions expand.
Hubble Protocol’s co-founder, Marius Ciubotariu, states, “Managing lucrative LP positions has been notoriously tough because to the complications provided by CLMMs and the higher danger of temporary loss when prices go the opposite way, as well as front-running by bots, frequent on Ethereum.”
Higher returns for LPs and superior capital efficiency are made possible by Kamino because of the Solana blockchain’s lightning-fast throughput. In doing so, the entire potential of CLMMs is realized. By releasing Kamino, we anticipate laying the groundwork for the next phase of rapid expansion of the Solana DeFi ecosystem.
Kamino will issue LPs with a fungible LP token as a receipt of deposit rather than the more common CLMM NFT. Hubble’s USDH censorship-resistant stablecoin can be borrowed against LP tokens, allowing for their use in Solana DeFi for transactions or yield.
At the center of Orca’s focused liquidity whirlpools is where Hubble will construct the first Kamino vaults. Stable asset and pegged asset pairs will have their own vaults at launch, with more vaults added later.
By expanding upon Whirlpools, Hubble has made it easy for liquidity providers to have access to the advantages of concentrated liquidity without the need for constant rebalancing,” explains Milan Patel, Head of Business Development at Orca. Hubble’s Kamino project is an example of how centralized liquidity on Orca may be easily tapped by any and all users and protocols.
Brief Description of the Hubble Space Telescope Protocol
Borrowing USDH, a censorship-resistant and crypto-backed stablecoin, is made possible via the Hubble Protocol for the Solana DeFi community. Users can mint USDH at up to 80% LTV by depositing a variety of bluechip crypto tokens like SOL, BTC, ETH, liquid staking tokens like mSOL, stSOL, and daoSOL, and an increasing number of assets.
In the Solana DeFi ecosystem, USDH can be utilized across several protocols for making purchases and receiving interest. The Hubble team is nearly finished with a roadmap that will see the introduction of additional goods and services, such as Kamino, that will provide substantial and lasting value to DeFi.
Brief History of Kamino Finance
Based on decentralized exchanges (DEXs) and utilizing concentrated liquidity, Kamino Finance automates the market-making process. By automatically rebalancing user positions and compounding fees and rewards, the protocol maximizes CLMM liquidity while taking advantage of Solana’s superior speed and low costs.
The goal of Kamino, an automated product led by quantitative analysis and modeling, is to give consumers a market-making tool that doesn’t demand a high level of skill to operate. While offering liquidity using Kamino, LPs can “set it and forget it” to maximize earned fees and decrease IL.
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