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The most recent breakthrough in the collaboration between Lido Finance and Kamino will enable users to earn a yield on their yield while also increasing the amount of SOL staked on the network to further promote the decentralization of the blockchain.

Earn yield by staking SOL through Lido and depositing a token in DeFi

Positions in stSOL, which now earn 5.5% APY through staking incentives, can now earn an extra return thanks to automated focused liquidity vaults on Kamino. Users can passively earn APY from exposure to stSOL and earning commissions from trades using Kamino, which offers liquidity for stSOL-SOL concentrated liquidity market makers (CLMMs).

Users can instantly stake their SOL with Solana through Kamino and Lido when they deposit SOL into Kamino’s stSOL-SOL vault thanks to a brilliant piece of decentralized finance (DeFi) innovation. With this technique, more SOL will be staked to decentralize Solana in addition to generating more yield on stSOL.

How Does Staking SOL Through Kamino and Lido Work?

Single asset deposits of SOL placed into the stSOL-SOL vault were previously automatically split using Jupiter Aggregator, which has grown to be one of the most capital-efficient liquidity aggregators in DeFi. This is all changed with the most recent integration between Kamino and Lido.

Earn APY from LDO rewards and real yield from trade fees.

However, establishing a liquidity position by exchanging SOL for stSOL that is currently in circulation on the market does not contribute to raising the SOL staked with Solana validators. Finding a mechanism to enhance SOL staking has therefore become a top goal. On the other side, raising the number of SOL staked on Solana is one of the main reasons that stSOL exists.

After this update, Kamino deposits of single asset SOL will be divided into stSOL by introducing fresh stSOL into the ecosystem through Lido. As a result, Lido’s efforts to spread SOL among a larger number of Solana’s validators will aid by the SOL put on Kamino into the stSOL-SOL vault.

DeFi Liquidity Solutions Team Up to Decentralize Solana

Users can rely on the protocol to help protect the future of their positions in addition to using Kamino to optimize their stSOL yield. This can be accomplish by contributing to the rise of Solana’s Nakamoto Coefficient, a crucial figure for guaranteeing the long-term viability of every blockchain through more decentralization.

When a variety of validators earn SOL from other users to enhance their capacity to efficiently complete transactions, the Nakamoto Coefficient for Solana—which calculates the minimal number of participants that would need to band together to conquer a blockchain network—increases. Users may not always make decisions that effectively increase Solana’s Nakamoto Coefficient, though.

The Nakamoto Coefficient for PoS blockchains at the time of writing.

The SOL staked with Lido ultimately ends up in the hands of the most deserving validators who could further raise the Nakamoto Coefficient on Solana, according to Lido’s specialization in this area. Currently at 31, Solana has one of the highest Nakamoto Coefficients among proof-of-stake (PoS) blockchains, and raising this value is a key objective for enhancing network security.

In order to balance concentrated liquidity holdings, Kamino is now contributing to Lido’s attempts to decentralize the network by staking SOL for stSOL rather than exchanging it for it. Thanks to Lido, a significant quantity of SOL is being stake on the network in a very effective manner.

Mark Another Win for DeFi Composability on Solana 

DeFi on Solana enables some fantastic protocol integrations thanks to its great composability. Solana’s decentralization through stSOL can be increase, deep liquidity can be achieve, novel yield methods may be foster, and the composability of Kamino and Lido can aid in creating sustained flywheel effects.

The stSOL liquid staking token from Lido on Solana is an effective tool for boosting DeFi liquidity and protecting Solana through PoS consensus. Users can support the network’s continued decentralization by putting SOL into Kamino’s stSOL-SOL vault and receiving real income from trading fees.

It will be intriguing to watch what the collaboration between Lido and Kamino creates next. In order to provide value for consumers and the future of Solana DeFi, they are figuring out fresh and innovative ways to combine their services. As we advance the concept of composability, concentrating on this value ought to lead to some fantastic inventions.

About Kamino

Kamino automatically manages your concentrated liquidity positions. When depositing your tokens, Kamino opens a liquidity pool position on a DEX and does everything for you. Rebalancing, auto-compounding, and finding the optimum range for capturing the most trading fees while avoiding impermanent loss (IL).

Website | Twitter

About Lido Finance

Lido is the leader in liquid staking (when measured by TVL) with a priority on contributing to ecosystem improvement, increasing blockchain decentralization, and making staking beneficial for all the participants on every chain it has launched.

Twitter |  Website

SOURCE

https://blog.kamino.finance/earn-yield-and-decentralize-solana-stake-sol-with-lido-finance-on-kamino

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Kamino Finance partnership with Solend aims to provide consumers with additional value in exchange for providing liquidity on Kamino.

Partnership Highlights

Solend will start taking kTokens from Kamino as collateral for borrowing various crypto assets from the USDH Pool.

Kamino aspires to be the ultimate liquidity destination on Solana, and Solend is helping to make it happen. Users can participate in one of the most intriguing use cases offered by this cooperation by borrowing stablecoins against kTokens on Solend: leveraging liquidity holdings several times on Kamino.

New Assets Added to Solend’s USDH Pool

The USDH Pool has provided highly attractive rates to both borrowers and lenders, and it has risen to the top of the isolated pools in terms of overall supply. The USDH Pool on Solend already housed five main crypto assets for borrowing and lending, and it will soon include kTokens for even more borrowing options.

Along with the first two kTokens, USDC will be put to the pool. This will increase users’ borrowing flexibility as well as their ability to use stablecoin vaults on Kamino that do not manage USDH pairings.

The first kTokens to be added to the USDH Pool are:

• kUSDH-USDC (Orca)
• kUSDC-USDT (Orca)

Users will be able to borrow up to 75% of the value of their kToken deposits, with a liquidation threshold of 85%. Borrowing assets with kTokens as collateral will also incur a 0.1% cost.

How to Leverage Kamino Positions with kTokens on Solend

With such a liberal LTV, incredibly low rates, and kTokens representing underlying holdings in stablecoin liquidity, it’s almost like an invitation to experiment with composability. What’s more, kTokens are yield-bearing assets that appreciate in value over time, making them ideal for use as collateral.

Users may now loop their borrowed USDC back into Kamino and leverage their position thanks to the addition of kTokens on Solend. To enhance exposure to the costs and incentives associated with providing stablecoin liquidity on Kamino.

Here’s an example of how users can use kTokens and Solend to leverage a USDH-USDC position on Kamino:

• Deposit liquidity into the USDH-USDC vault on Kamino.
• Deposit kUSDH-USDCo on Solend.
• Borrow USDC or USDH.
• Repeat Steps 1-3 to increase leverage

Because Kamino’s automated services support single asset deposits, customers don’t even have to divide their borrowed USDC into USDH or vice versa. The same procedure may be used for each stablecoin vault represented by kToken collateral until the maximum caps on Kamino and Solend are achieved.

Kamino and Solend Work Wonders for Liquidity on Solana

Borrowing from Solend with kTokens as collateral, a huge step for Solana’s DeFi composability. They are ecstatic to collaborate with Solend to give users with several options to increase their liquidity on Solana.

Given how quickly the maximum cap limits were achieved when kTokens were added as collateral for borrowing USDH on Hubble Protocol, it would not be shocking if Solend’s limitations were surpass in a similar time frame.

About Solend

Solend is an algorithmic, decentralized protocol for lending and borrowing on Solana. Lending and borrowing have proven themselves to be key in a DeFi ecosystem.

 Website | Twitter

About Kamino

Kamino automatically manages your concentrated liquidity positions. When depositing your tokens, Kamino opens a liquidity pool position on a DEX and does everything for you. Rebalancing, auto-compounding, and finding the optimum range for capturing the most trading fees while avoiding impermanent loss (IL).

Website | Twitter

SOURCE

https://blog.kamino.finance/solend-adds-ktokens-as-collateral-for-borrowing/?utm_source=twitter&utm_medium=article&utm_campaign=blog_internal

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Kamino Finance launches UXD stablecoin strategy vault. With the UXD vault included, Kamino will now be an automated concentrated liquidity solution or liquid assets. Supporting all significant Solana-native DeFi stablecoins, such as USDH, USDr, and USH.

Plans by Kamino

All coins offered on Solana will have automatic concentrated liquidity management provided by Kamino. As obtaining deep liquidity is one of the most crucial components of preserving the health of dollar-pegged stable asset/stablecoins assets on decentralized exchanges, this service will become especially crucial for the ecosystem’s stablecoins (DEXs).

The fiat-backed stablecoin USDC will be linked with the token in the UXD vault because of its stability and liquidity when combined with other stablecoins in Decentralized Finance (DeFi) applications. Users that deposit either UXD or USDC into the UXD vault. Can benefit from Kamino’s automated rebalancing and auto-compounding, which maximizes actual profit from trading fees.

About UXD and Recent Protocol Innovations

With almost $15 million in circulation, UXD is one of the biggest circulating Solana-native stablecoins. To optimize capital efficiency, the project has placed a high priority on developing innovative stablecoin designs. To that end, UXD introduces the first stablecoin on the market, supported by delta neutral positions on Mango Markets.

The Asset Liability Management Module has emerged as the project’s new direction. For preserving UXD’s backing and scalability, this new architecture adds lending, overcollateralized loans, real-world assets (RWAs), and other techniques on top of delta-neutral positions.

Additionally, UXD intends to turn its governance token, UXP, into a cash-flow token that generates income from these different other businesses. UXD will be made accessible on Optimism, the Ethereum Layer 2 solution, along with these updates, transforming the platform into a cross-chain stablecoin provider.

UXD reduced its maximum issuance ceiling from an all-time high (ATH) of $40 million to its current level of $15 million as a result of the market slowing down and declining open interest on Mango. As UXD tries to reclaim its prior ATH and beyond through a variety of tactics across several networks, Kamino intends to assist UXD in developing steady and deep liquidity.

Kamino is Spearheading Stablecoin Growth on Solana

For generating deep liquidity for tokens on Solana’s focused liquidity DEXs, Kamino is a potent tool. Stablecoins may further stabilize their pegs with deep liquidity by utilizing Kamino’s capabilities. And they can also lessen any price effect on their tokens during trade, particularly during times of turbulence.

Kamino contributes to the improvement of the Solana stablecoin environment by introducing a new stablecoin to its automated vault solutions. Additionally, with the opening of the UXD vault, Multicoin Capital and Kamino will work together to promote the development of two types of stablecoin projects—Hubble Protocol and UXD—in order to strengthen the DeFi ecosystem on the network.

Nine automated vaults have gone online with over $5M in TVL placed by Solana’s DeFi customers since Hubble Protocol assisted in the incubation of the debut of Kamino Finance. Kamino intends to keep constructing more vaults to support Solana initiatives and native programs and create deep liquidity options for everyone.

About Kamino

Kamino automatically manages your concentrated liquidity positions. When depositing your tokens, Kamino opens a liquidity pool position on a DEX and does everything for you. Rebalancing, auto-compounding, and finding the optimum range for capturing the most trading fees while avoiding impermanent loss (IL).

Website | Twitter

About UXD Protocol

Algorithmic stablecoin backed 100% by a delta neutral position using derivatives.

Website | Twitter

SOURCE

https://blog.kamino.finance/kamino-launches-uxd-vault/?utm_source=twitter&utm_medium=social&utm_campaign=blog_internal

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Kamino Finance is on a mission to become Solana’s ultimate liquidity destination. A corner of the DeFi universe where capital efficiency reigns supreme.

Introducing Kamino

Kamino is a tool that automatically rebalances concentrated liquidity (CLMM) positions, auto-compounds rewards, and utilizes advanced proprietary quantitative modeling to fine-tune the protocol’s strategies for capturing value.

Though initially built on Orca’s CLMM Whirlpools, Kamino’s easy-to-use vaults are designed to manage liquidity across multiple next-generation DEXs. Kamino makes it possible for any user to provide liquidity and earn fees from trading with the click of a button.

Why We Need Kamino

Orca’s CLMM Whirlpools currently attract multiple times the 24-hour trade volume. As their counterparts, liquidity pools reliant on the traditional AMM structure.

Orca Traditional AMM pools have $2.7M daily volume, with $61M in TVL.

Whirlpools attract 7x the volume as Orca’s classic AMM pools – with half the liquidity deployed by users ($61M versus $27M).

In contrast, Orca CLMM pools (Whirlpools) are making 7x more daily volume, $14.8M, with half of the LTV of Orca Traditional AMM pools.

This difference in volume demonstrates a massive increase in capital efficiency, but the complexity of setting and managing concentrated liquidity positions has been a barrier to increased adoption.

Furthermore, studies have shown that the impermanent loss (IL) from concentrated liquidity positions often outweighs fees earned by a significant margin, leading to a large proportion of loss-making positions.

Kamino’s strategies aim to protect users from IL and optimize yields earned from fees when providing concentrated liquidity. The image below demonstrates a historical model of Kamino’s performance over a one-month period. Managing the USDC-USDT Whirlpool, and as you can see, Kamino outperforms the estimated APY advertised by Orca.

Concentrated liquidity is an incredibly powerful tool that could propel DEXs to the center stage of global crypto trading. As the decentralized trading environment improves, and as more users are attracted to concentrated liquidity. Kamino will help optimize the fees users can capture while minimizing the risk of Impermanent Loss.

Why Hubble Protocol Incubated Kamino

Hubble Protocol has been building DeFi solutions on Solana for over a year. Incubating Kamino Finance is an extension of Hubble’s mission to improve the capital efficiency and liquidity of the DeFi landscape on Solana, especially for USDH.

Kamino will be doing much more than simplifying life for LPs. Kamino will help provide deep liquidity for USDH. And it will create additional collateral that can be deposited on Hubble via kTokens (Kamino LP tokens). By helping further composability in Solana DeFi. Kamino will also increase opportunities for users to mint USDH and use kTokens independently.

Hubble has always prioritized security above all, and Kamino will be held to the same rigorous standards. By the time Kamino goes live, the protocol’s code will have been submitted to three independent audits on top of multiple tests performed throughout Kamino’s development.

About Kamino

Kamino automatically manages your concentrated liquidity positions. When depositing your tokens, Kamino opens a liquidity pool position on a DEX and does everything for you: rebalancing, auto-compounding, and finding the optimum range for capturing the most trading fees while avoiding impermanent loss (IL).

Website | Twitter

SOURCE

https://blog.kamino.finance/introducing-kamino-finance/?utm_source=twitter&utm_medium=social&utm_campaign=blog_internal

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