This topic will serve as a discussion for the role of HBB within Kamino, and how Kamino can deliver value for HBB. Please read through the post and leave your thoughts.
Kamino Finance recently launched on Solana mainnet. Kamino offers automated vaults that manage concentrated liquidity positions, such as Orca Whirlpools.
This has been in large part possible by the help of Hubble, through which Kamino was incubated earlier this year. Kamino’s close relation with Hubble also feeds into the role of HBB within Kamino. There are a few aspects to the proposed role of HBB within Kamino. At present, these are as follows:
- HBB as incentives
- Rewards to HBB stakers
- HBB buybacks via Kamino fees
Initially, HBB will be used as an incentive to bootstrap TVL for Kamino. HBB will be rewarded across all vaults, and users will immediately start earning HBB once they deposit into Kamino.
HBB incentives will be awarded as HBB Call Options, facilitated by Zeta Flex. Call options will be airdropped just as any other incentives. After receipt, users can choose if they want to exercise their options on the Zeta Flex portal (Zeta Flex 💪).
The first phase is to draw liquidity for Kamino, though this will not be the only impact that Kamino has on HBB. To recognize the contribution that Hubble has made to Kamino, it’s desirable that inflows to Kamino’s revenue are also used to return value to HBB. Kamino’s revenue grows via fees, for example consisting of:
- Deposit Fees
- Withdrawal Fees
- Performance Fees
There are a range of measures that could be employed to utilize these fees to benefit the HBB ecosystem, such as the following;
- A portion of these fees can be distributed directly to HBB stakers as yield, thus incentivizing deposits into Hubble’s HBB Vault, and adding buy-pressure on HBB itself.
- The fees earned by Kamino could be used to buy back HBB on the market. This has the potential to positively impact HBB price, as it reduces circulating supply.
- HBB stakers could be incentivized to lock their HBB for a period of time, in order to receive Kamino fees
We would like to invite the Hubble community to voice their own opinion and provide feedback on the above ideas, as well as provide any additional input.
We want to be as open as possible regarding what you, the holders of HBB, would like to see for the role of HBB within Kamino. Please share your thoughts below.