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).

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About UXD Protocol

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

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SOURCE

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UXD on Optimism is integrated with Perpetual Protocols to create the delta-neutral position. Below are the steps to mint/redeem UXD.

UXD is issued on Solana, an incredibly fast, cheap, and permissionless blockchain. In addition, UXD is a next-generation decentralize stablecoin that integrates with top derivative trading exchanges on Solana in order to create a “delta-neutral” position that collateralizes the stablecoin.

Its first derivative dex is Mango Markets. Through UXD’s construct, they are able to solve the “stablecoin trilemma“, allowing UXD to be stable, capital efficient, and decentralized. Moreover, the stablecoin has native yield from the “funding rate” of the perpetual futures position it puts on, allowing UXD stakeholders to generate yield as a result.

How does UXD differ from “algorithmic” stablecoins?

• Stable: The goal of a stablecoin is to keep a direct peg to a non-crypto asset like US Dollars. If a stablecoin wildly fluctuates above or below this peg, it is fundamentally not very useful.
• Decentralized: The issuance, trading, and flow of the stablecoin should not rely on any centralized entity. Minting and redeeming the stablecoin should be permissionless and decentralized, and the community of stablecoin users should own the platform that creates the stablecoin.
• Capital Efficient: Anyone should be able to mint the stablecoin with $1 of assets. Requiring more than $1 to mint a stablecoin, such as a case with DAI, is extremely inefficient for users.

Optimism builds according to a strong design philosophy that stands on four main pillars. These are simplicity, pragmatism, sustainability, and, of course, optimism. It’s important to understand these pillars as they heavily influence the design of Optimism as a whole.

Optimism designs as simple as possible for the feature set it provides. Ideally, Optimism is compose of the minimum number of moving parts required for a secure, scalable, and flexible L2 system. This simplicity gives Optimism’s design a number of significant advantages over other more complex L2 constructions.

ABOUT UXD Protocol

UXD Protocol is a fully collateralize and decentralize stablecoin backed by a delta-neutral position using derivatives.

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RESOURCES

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