Kamino Finance Session AMA with BeInCrypto

Hi all! Welcome to another BeInCrypto AMA session!

Today we welcome Marius (@y2kappa) who is the co-founder of Hubble Protocol, which has just launched Kamino Finance: a brand new automated liquidity provider optimizer on Solana.

(This SA has been edited for clarity)

COMMUNITY: Here’s how things will work. I will have 10 questions for Marius. After that our chat will be open for you to drop your questions so they can answer 3 of all the questions you asked. Good luck to all of you!

Let’s start >>

BeInCrypto: I would like to ask you something general to kick things off, so please provide some personal information as well as information about the Hubble Protocol and its USDH stablecoin.

Marius: I started my crypto/DeFi journey at the Solana Seasons Hackathon in June 2021. I loved the Rust language and was excited about the Solana infrastructure and what it enabled for decentralized finance. The idea for Hubble and USDH was born there, and fast forward 7 months, Hubble was launched in January 2022. So Hubble has been online for exactly 7 months.

BeInCrypto: I know Kamino was incubated by the Hubble Protocol “to turn liquidity on Solana”. Can you tell us what you watched before creating Kamino?

Marius: As a stablecoin issuer, we were constantly looking to improve the liquidity of USDH and we realized over time that concentrated liquidity was better suited than a normal AMM, as it gives lower slippage and volume much higher for much less TVL. It was then that we decided to create a tool for Hubble to improve its stable liquidity. This is how Kamino was born.

BeInCrypto: Great, thanks for that explanation. In fact, we all know that there are “competing” platforms. However, Kamino is truly different from all of them. What sets you apart? In short, how do you maximize capital efficiency and optimize returns?

Marius: We actually hired a quantitative analyst to research the best way to maximize capital efficiency. Currently, users wishing to provide liquidity to liquidity-focused market makers must deposit manually and must balance the yield with safe ranges. It can be a difficult balance to strike, and what Kamino does is pick those ranges for you. It also automatically adjusts ranges based on what our quantitative modeling indicates is the optimal range. This keeps your deposit in the ideal range and accumulates returns within that range.

BeInCrypto: I see. The CLMM (concentrated liquid market maker) design was first introduced by Uniswap v3 but has some issues. What are some of these issues and how does Kamino offer a solution?

Marius: If users want to manually deposit in CLMMs, which has been the case so far, they should have a good idea of ​​what a safe range is, as well as an idea of ​​how their range will impact their performance. This can be quite a challenge, especially for new users who don’t have strong DeFi knowledge.

Additionally, users typically experience an impermanent loss faster in a CLMM than in a typical automated market maker (AMM), and it can be quite scary to suddenly have all your funds in one token, and no funds in the other. token you originally deposited. .

All of these elements constitute a barrier to adoption that CLMMs currently face. Despite its massively increased capital efficiency, people don’t seem to be adopting them as quickly.

Kamino aims to simplify this, automating every step of the process, allowing users to deposit their funds, and Kamino chooses the ideal range, as well as automatically adjusting deposits to stay in the optimum range. On top of that, Kamino also auto-compounds fee and reward returns, redepositing them into the position. This makes the use of CLMMs much more user-friendly, which benefits everyone; users and DEX.

BeInCrypto: Incredible, thank you very much for this explanation. I always ask for media (images, videos, etc…) in order to better present the projects to our community. Would you mind sharing Kamino visuals?

BeInCrypto: Cool. We also note that the USDH stablecoin has a relevant role within your ecosystem. Could you please tell us how it is connected to the Kamino structure? What benefits can users expect by using it?

Marius: Kamino will have quite a few advantages for the USDH! First, Kamino will have a variety of Orca USDH Chests, the first of which is already live (and has hit its cap twice!), and more are coming very, very soon. Second, and this is a big deal, Kamino will tokenize all of its positions, and these will be accepted as collateral for Hubble.

This means users can mint USDH with Kamino kTokens and use that USDH to deposit back into Kamino. This has the potential to bring large amounts of liquidity to USDH, which has a variety of advantages such as peg stability and overall reliability as a stablecoin.

BeInCrypto: Logic! I think not all members here are used to dealing with platforms/apps like yours, so let’s take an educational approach to this. Is there a tutorial on how to start gaining yield with Kamino?

Marius: We’ve put a lot of effort into making the Kamino app (app.kamino.finance) as user-friendly and simple as possible, with explanations and walkthroughs for every step of your journey through the app.

If you have any other questions, a good start would be to go straight to our Discord, where top Kamino contributors have already helped users with all their questions: Discord.

Our launch article also reviews the basics of Kamino, and its purpose, very well:

BeInCrypto: Well, it’s time to ask yourself a risk and safety question. How does Kamino deal with and try to protect users against impermanent loss? How safe are all funds? Any external links from audits or similar processes are welcome!

Marius: From launch, Kamino users will experience very little impermanent loss, as Kamino will only have stable vaults and pegged vaults (like SOL-stSOL). Once Kamino has volatile pairs on the app, it will limit impermanent losses as much as possible by rebalancing positions based on quantitative patterns. And the best part is that this process is completely automated (of course).

And yes, we take security EXTREMELY seriously, and already have a full audit completed, with two more in the works. here is the audit link.

BeInCrypto: Good! I guess your roadmap is full of activities. What can Hubble and Kamino enthusiasts/users expect regarding future plans? What do you have in mind for Kamino in the next weeks or months?

Marius: We will pursue two objectives at once:

1. We want to optimize Kamino to ensure vaults perform as well as possible and give users the best returns while maximizing capital efficiency.

2. We will work aggressively to build partnerships, get kToken integrations, and grow Kamino as much as possible.

We have a very strong group of technical contributors to do number 1 and a very strong group of growth contributors for number 2

BeInCrypto: Great, that’s it. I’m sure we’ve covered all the main topics today. Could you please share all the links to your social media channels so that our community can learn more about Hubble Protocol and Kamino Finance?

Marius: For sure!
Twitter

Kamino Discord

HubbleTwitter

HubbleTwitter

COMMUNITY ISSUES

Community: As a new small investor in the cryptocurrency market and projects, I would like to know if your project is only for elite investors or is it for almost everyone??

Marius: It’s for everyone, no barrier to entry, that’s the cool thing about defi, openfi, but of course you have to do your own research.

Community: Could you tell us a bit more about your roadmap and your upcoming events? What are your priorities this year and where do you see your project in the next 5 years?

Marius: Improving the liquidity of different tokens is a huge effort and it will result in multiple deliveries, watch our Twitter.

Community: How safe and secure is your platform and how do you maintain security? Do you have audit plans?

Marius: One audit completed, two in progress

Community: What are your plans to increase and ensure global adoption of your project? How do you intend to attract institutional and individual investor-users?

Marius: By providing sustainable performance and a product that meets their needs. Many people are looking for stable return strategies.

Community: Have you created ambassador programs for people in different places around the world?

Marius: Please check out our Discord. we invite people to apply for positions.

Other SM Channels:

Twitter | Kamino Discord | HubbleTwitter | HubbleTwitter

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