Hubble Protocol Launches Kamino Finance to Optimize Yields for Liquidity Providers on Solana

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LONDON | August 30, 2022 - Hubble Protocol, home of the USDH stablecoin, has launched Kamino Finance: the first concentrated liquidity market maker (CLMM) optimizer of its kind on the Solana blockchain. 

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. 

By automatically adjusting positions so they are set in an optimum range to capture the most fees and provide the deepest liquidity, Kamino removes common pain points for CLMM liquidity providers (LPs). 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 the potential of CLMMs. With Kamino, we hope to be paving the way for DeFi’s next explosive period of growth on the Solana DeFi ecosystem.”

Instead of the usual CLMM NFT, Kamino will provide LPs with a fungible LP token as a receipt of