Kamino is an automated liquidity protocol built for concentrated liquidity DEXs. Kamino actively manages LP positions to maximize capital efficiency and yield.
Kamino is an automated liquidity solution built on concentrated liquidity DEXs. Retail users currently experience several issues when market making in these types of pools including greater impermanent loss risk, inefficiently set price ranges, manually compounding fees/rewards, and time consuming. Kamino solves these problems by actively managing the user's LP positions for them through advanced market making strategies, automated position rebalancing (to stay within range and earn fees), auto-compounding rewards, and improved user experience. Kamino has four types of pools: stable, pegged, non-pegged, and non-pegged to stable. Stable pools (stable-stable pairs) rarely move out of range so Kamino aims to minimize the amount of rebalances or keep it close to 0. Pegged pools have pairs that grow at a known pace, so Kamino aims to rebalance only when necessary. Non-pegged pools are expected to experience price divergence over time. These pools will be rebalanced to maintain optimized ranges. Non-pegged to stable pools will similarly be rebalanced as needed to retain optimized ranges. When a user deposits into a Kamino vault, they receive a fungible kToken in return that reflects their share of that vault. Each Kamino vault has its own distinct kToken.
Kamino collects three types of fees: deposit, withdrawal, and performance. Deposit fees are charged as a percentage of the total amount deposited into a vault (deducted at the time of deposit). Withdrawal fees are a percentage of the total amount withdrawn from a vault (deducted at the time of withdrawal). Performance fees are collected on any profits made in the vault. This is not an upfront fee and is only charged when a user earns a profit. This fee varies between vaults, with more complex strategies generally having a slightly higher fee.
You earn money by providing liquidity to Kamino vaults and letting the algorithm optimize trading fees and auto-compound rewards. After providing liquidity, you can then deposit your LP positions (represented by kTokens) on Hubble to leverage up to 20x with USDH. The first kToken integration on Hubble is the kUSDH-USDC token.