Press Release
PRESS RELEASE. August 30, 2020 -| August 30, 2022 – Hubble Protocol has created Kamino Finance. It is the first CLMM optimizer for concentrated liquidity on the Solana network.
Kamino Finance, launching initially on next-generation decentralized exchange (DEX) Orca, will allow users to earn higher yields in a fully automated way simply by depositing their crypto into vaults linked to Orca’s liquidity “whirlpools.”
Kamino Finance builds on the advantages of CLMM’s, which reduce slippage and facilitate larger trades by narrowing the price range at which users provide liquidity.
Kamino automates position adjustments to make sure they’re in the best range for capturing the highest fees and providing the deepest liquidity. In addition, Kamino automatically compounds CLMM fees and rewards back into users’ LP positions, boosting yields as position sizes grow.
Marius Ciubotariu, the co-founder of Hubble Protocol, says: “Managing profitable LP positions has been notoriously difficult due to the complexities posed by CLMMs and the increased risk of impermanent loss when prices swing the wrong way, as well as front-running by bots – common on Ethereum.
“Thanks to the lightning-speed throughput of the Solana blockchain, Kamino is able to provide LPs with higher yields and maximum capital efficiency. This fully realizes CLMMs potential. With Kamino, we hope to be paving the way for DeFi’s next explosive period of growth on the Solana DeFi ecosystem.”
Kamino, instead of the regular CLMM NFT will issue LPs with an LP token that can be used as a receipt. This LP token can be used as collateral to borrow USDH, Hubble’s censorship-resistant stablecoin, which can then be used to transact or earn further yield in Solana DeFi.
Hubble will build the first Kamino vaults on top of Orca’s concentrated liquidity whirlpools. Vaults for stable-asset or pegged-asset pairs will be available at launch. Future vaults may include additional vaults.
Milan Patel, Head of Business Development at Orca, says: “By building upon Whirlpools, Hubble has created a simple way for liquidity providers to access the benefits of concentrated liquidity without continuous rebalancing. Hubble’s Kamino project demonstrates how concentrated liquidity on Orca can be easily harnessed by all users and protocols.”
Hubble Protocol
Hubble Protocol is a way for the Solana DeFi to borrow USDH. It’s a crypto-backed, censorship-resistant stablecoin that can be borrowed by Solana DeFi members. Users can create USDH by depositing a variety of bluechip crypto tokens, such as SOL and BTC and ETH.
USDH can be used across multiple protocols in the Solana DeFi ecosystem for transacting and earning yield. Hubble’s team is working to develop a roadmap, which includes enhancements to the USDH borrowing platform, as well as new products, such as Kamino. These will add real, long-term value for DeFi.
Kamino Finance
Kamino Finance, an automated market-making system, is built upon DEXs that are powered by concentrated liquidity. This protocol maximizes CLMM liquidity through the use of Solana’s superior speed and cost to rebalance and pay auto-compound and rewards fees on behalf of its users.
Kamino, an automated product that is guided by modeling and quantitative analysis, aims to give users a tool to help them make market decisions. LPs can “set it and forget it” to maximize their earned fees and minimize IL when providing liquidity via Kamino.
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