Kamino Launches the First in a Range of Vaults Supporting Helium’s Migration to Solana

Overview

• Kamino has launched an HNT vault now that Helium has joined Solana.
• Helium's users can earn yield by providing HNT liquidity.

Kamino is proud to announce the launch of a range of vaults for Helium ecosystem tokens. Helium, one of the largest decentralized physical infrastructure networks (DePIN) in the world, has deprecated its blockchain in favor of operating on Solana, and Kamino will provide opportunities for token holders to provide liquidity for HNT and earn trading fees via Solana’s concentrated liquidity decentralized exchanges (DEXs).

The first Helium vault to launch on Kamino will be HNT-SOL, providing liquidity solutions for Helium’s flagship token. In addition to an HNT vault, there will also be vaults launched for IOT and MOBILE, the Helium ecosystem tokens that support the network’s decentralized wireless LoRaWAN and 5G hotspots .

A Brief Introduction to Helium Explained and Decentralized Physical Infrastructure Networks (DePIN)

The Helium Network is on a mission to decentralize connectivity around the world. Users can host Wi-Fi or cellular 5G hotspots that anyone can use to connect to the internet via their computer or mobile device. For participating in the upkeep of the network, Helium’s providers can earn HNT.

The project boasts close to one million LoRaWAN hotspots and 7,000 5G radio transmitters that provide Helium network coverage around the world. In early 2022, the New York Times quipped of Helium that “maybe there’s a use for crypto after all,” as the HNT token drives participation in the network.

Helium is one of several DePIN projects that provide a real-world utility supported by blockchain technology. Through tokenization, these projects incentivize users to participate in the decentralization of services and technologies that are most often supported by centralized entities, and the decentralized Helium community has voted to move its operations onto Solana.

What Helium’s Move to Solana Means for Users

Moving onto Solana will provide a Helium network upgrade as it operates on one of the fastest and most cost-effective public blockchains. The Helium Solana connection will also introduce Helium’s users to a world of DeFi, NFTs, and other Web3 applications that are easily accessed through a shared Layer 1 blockchain.

For example, users who want to convert their Helium miner HNT into another token to participate in other crypto protocols or buy NFTs can do so with ease. The Helium wallet will become native to Solana, and HNT will be an asset that can be held on any Solana wallet after the “People Network” makes its move.

The Solana community will also benefit from the addition of a new and exciting asset with HNT on board. Helium mining won’t be the only way to acquire HNT once Helium goes live on Solana, and the active trading community on Solana will be able to participate in the protocol’s success by swapping for HNT on one of Solana’s several DEXs.

How Kamino Finance Supports Deep Liquidity for Helium’s Tokens on Solana

Solana isn’t just one of the most decentralized Layer 1 blockchains available; it also hosts one of the most robust decentralized trading communities in DeFi. Exchanges like Orca and Raydium help users swap their tokens in a decentralized manner while accessing deep liquidity and minimized slippage on trades due to advancements in concentrated liquidity.

Kamino Finance acts as a liquidity management layer that makes it easier than ever for users to participate as market makers providing liquidity to these DEXs. Users who act as concentrated liquidity providers earn fees from trades, but maintaining concentrated liquidity positions has been historically difficult for many, raising the barrier to entry for this DeFi yield opportunity.

Why Provide Liquidity Through Kamino?

This article will further explain why users would choose to provide liquidity through Kamino instead of directly with a decentralized exchange (DEX).

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By supporting HNT with its own vault, Kamino makes it possible for Helium’s users to put their tokens to work in DeFi, earning yield on HNT by providing liquidity with a single deposit. Kamino’s smart contracts automatically adjust price ranges and auto-compound fees and rewards into positions on behalf of users, optimizing the process of earning yield.  

The majority of DEX trades in DeFi are facilitated by concentrated liquidity these days, and Kamino provides one of the smoothest and most user-friendly options for capturing yield on these exchanges. As a result, Helium’s user base can more easily participate in DeFi with their HNT tokens to earn yield as others trade HNT.

Solana, Helium, and Kamino Combine Multiple Layers to Optimize Utility for Users

As Helium supports the decentralization of important infrastructure like access to Wi-Fi and 5G, it joins one of the most decentralized networks available on the market, Solana. Solana currently boasts a Nakamoto Coefficient of 33, which means it would take 33 independent validators to collude to override the network—and this number is much higher than other blockchains.

More than that, Helium’s users will also find a superior UX on Solana, where transaction throughput and costs are some of the best in the industry. Because of Solana’s advanced technology, protocols like Helium and Kamino can share the same trust layer and provide unparalleled access to DePIN and DeFi services, all on one chain and at a low cost.

The combination of Helium and Kamino is something that’s only possible on Solana, and it will be interesting to see how the network flourishes in its new home. Kamino is more than happy to support token liquidity on Solana as projects like Helium make strides to further decentralize access to the internet around the globe.