Hubble Protocol has recently announced the launch of Kamino Finance. According to Hubble Protocol, the newly launched service will act as a very significant liquidity market maker (CLMM) optimizer.
According to the officials at the Hubble Protocol, Kamino Finance will act as the first ever concentrated CLMM and it has been launched on the Solana blockchain.
Hubble Protocol is also very prominently known for the issuance of a stablecoin that is known as USDH.
Initially, Kamino Finance was launched through Orca, which is a next-generation decentralized exchange. The purpose of the protocol is to let the users generate stronger yields.
The users can do this by interacting in a completely automated way. All the users have to do is deposit crypto funds into the vaults. These vaults are linked with whirlpools that are liquidity pools on Orca.
Benefits of Kamino Finance
The major benefit of Kamino Finance is that it derives all of its resources from the CLMM. With the help of LMM, it is able to facilitate larger trades and reduce slippage possibilities.
The technology used by the platform allows the user to add smaller funds to the liquidity pools. The funds they are able to add are of narrow ranges.
The system also supports automation, which causes the positions to adjust automatically. This helps set the prices of the liquidity between the optimum ranges. This allows the system to capture as many fees as possible and gains from the liquidity pools increase tremendously as well.
Provisioning of Kamino Vaults
Hubble has announced that the first batch of vaults of Kamino will be built on top of the liquidity whirlpools of Orca. At the time of the launch, the assets supported by the vaults would be pairs of stablecoins and pegged coins.
Following the success and adoption rate of the vaults, Hubble will decide how many vaults it needs to add to the community.
As of now, the decentralized finance communities on the Solana blockchain are able to borrow USDH through the Hubble Protocol.
USDH is a stablecoin that is not pegged by any fiat currency but with a cryptocurrency. One of the major benefits that USDH has to offer is that it is censorship-resistant.
Some of the major cryptocurrencies that are currently supported by the Hubble Protocols include ETH, BTC, and SOL. The users can deposit such cryptocurrencies for staking purposes.
On the liquidity staking pools, these tokens are available as daoSOL, stSOL, and mSOL.
Over time, the protocol has continued increasing the number of assets that are available for the users for staking purposes.
By staking cryptocurrencies, the users can mint USDH and they can do it up to 80% LTV.