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Kamino Finance is a decentralized finance (DeFi) protocol built on the Solana blockchain. It aims to be an “all-in-one DeFi hub” by offering lending, borrowing, trading and yield farming capabilities on a single platform.

What is Kamino Finance ?

Kamino Finance is a decentralized finance (DeFi) protocol built on the Solana blockchain. It aims to be an “all-in-one DeFi hub” by offering lending, borrowing, trading and yield farming capabilities on a single platform.

Key features of Kamino Finance include:

Lending/Borrowing

Users can deposit cryptocurrencies as collateral and borrow against them, similar to Compound. Supported assets include SOL, USDC, wSOL.
Borrowing is overcollateralized to mitigate risk of liquidation. Users can borrow up to 50% of collateral value.

Perp Trading

An integrated perpetual trading platform allows users to trade with up to 100x leverage using Kamino’s native KAM token as collateral.
Supported perp markets currently include BTC/USD, ETH/USD, SOL/USD. Margin funding also earns interest.

Yield Farming

Liquidity providers can deposit token pairs into liquidity pools on Kamino to earn trading fees and KAM rewards.
Pools currently support SOL/USDC, wSOL/USDC and more trading pairs. Rewards are paid out in KMNO tokens.

What is $KMNO Token

$KMNO is Kamino’s governance and utility token. It is used to pay trading fees on the platform and as collateral for leveraged perpetual trading.
$KMNO can also be staked to earn additional rewards from trading volume fees. This provides an incentive for users to hold the token.
Kamino aims to provide a one-stop DeFi ecosystem on Solana combining lending/borrowing, trading and yield opportunities in a single interface. Low fees and high throughput of Solana also allow it to provide services like liquidity mining and leveraged perpetuals that are difficult on other platforms. Over time it plans to support additional crypto assets, introduce new products and features, as well as expand to other blockchains.

Possible Upcoming airdrop?

• The airdrop will reward users who have interacted with Kamino by providing liquidity, borrowing, lending or trading on the platform.
• The airdrop amount will be based on the total value locked (TVL) provided by each user to various pools and activities on Kamino during this snapshot period.
• Users do not need to take any special actions to qualify other than normally using Kamino services as usual during the snapshot window.
• The airdrop aims to reward active liquidity providers and incentivize ongoing participation in Kamino’s protocols.

Disclaimer: This is just writer’s sentiment and does not mean that it is true or it is the confirmed airdrop criteria. This article is just to provide valuable info on Kamino finance and how to use the protocol.

How to interact with Kamino Finance

I wrote a comprehensive thread on X explaining various ways of interacting with Kamino finance. Link below ;

Additional Features on Kamino Finance

Governance

$KMNO holders can participate in governance to vote on platform upgrades and features. This enables community input into the protocol’s direction.
Budgets are determined through governance to allocate funds for development incentives, marketing and operations.

Risk Management

Borrowing utilizes a liquidation engine to monitor collateral ratios. If a user’s collateral falls below maintenance levels, some collateral is liquidated to repay their loan.
Perpetual contracts have automated margin calling to ensure sufficient collateral is maintained and close positions if needed. This helps protect the protocol.

Fees

Lending and borrowing yield modest interest rates for depositors/borrowers on the order of 5–10% annually.
Trading fees on the perpetual DEX range from 0.04–0.075% depending on trade type and volume tiers. This is significantly lower than centralized exchanges.
Yield farming incentives provide liquidity providers 200–500% APY initially, with rewards decreasing over time as the pools mature.

Technology Partners

Kamino integrates with other projects like Serum for its DEX, Tarot for oracles, and uses Solana’s robust API to offer withdrawal/deposit functionality.
Its developer-centric design allows it to easily incorporate new assets, markets and integrations as the ecosystem grows.

Roadmap

Future plans include adding new capital efficiency pools, additional leveraged tokens, NFT trading/lending and integration with Layer 2 solutions to expand capabilities.
International fiat on/off ramps, derivatives like options/futures and community initiatives are also under consideration.
By providing a wide range of DeFi services, Kamino aims to become a one-stop hub for all on-chain financial needs on Solana’s high-speed, low-cost blockchain. Its community governance also allows for ongoing innovation.