Project 0 Makes DeFi History with Kamino Integration

With the Kamino integration, Project 0 unlocks true cross-market credit and capital efficiency for the first time in DeFi.

Introduction

Today, Project 0 makes DeFi history, unlocking generalized unified margin across multiple on-chain venues. We're going live with our second venue, Kamino, and adding two Kamino markets to our unified risk and credit engine — meaning for the first time you can have assets on the Project 0 (P0) market and on the Kamino market and borrow against both venues at once, with adjusted risk, rates, capital efficiency, and UX.

Architecture Overview

We've built our architecture to be lightweight and versatile. Project 0 simply inserts a self-custodial account in-between the user and the underlying venues they're using to enable credit origination against a users whole portfolio. This ensures unified portfolio liquidations can be processed to protect solvency.

User Experience

From the user's POV, this immediately looks like using a global lending account. You have one account health to manage, one borrow to manage, and one portfolio to optimize. Prime brokerage functionality has always been out-of-reach from the average user. Today, that changes — and the UX we've built to facilitate this makes capital management easy for everyone.

As of now, users can borrow against their Kamino positions via Project 0, with borrow-side liquidity sourced from the Project 0 market. Currently, Kamino banks cannot be looped or used for collateral repayment — this functionality will be added shortly after launch. Additionally, users with an active Kamino bank position cannot loop or repay using collateral from either Project 0 or Kamino. For now, users can open up to 7 Kamino positions in total, with expanded functionality coming soon following the integration.

New Use Cases: Capital Efficient Arbitrage

One of the net-new use cases the Kamino integration enables is capital efficient interest rate arbitrage between Kamino and Project 0 assets. Anywhere you can deposit on P0 or Kamino at a higher rate and borrow at a lower rate, there's an opportunity for traders to capture opportunity. Previously, traders were limited by spreads on isolated venues, where the lending rate is lower than the borrow rate for each asset, neutralizing any arbitrage opportunity. However, now on P0 if there is a high lending rate on Kamino and a low borrow rate on Project 0, you can use your Kamino deposit to borrow on P0, and use leverage to loop that spread, capturing yield previously impossible to get.

Rollout Plan

We're rolling out the Kamino integration to the top 5,000 ranked points holders of both Project 0 + MRGN points, with some additional power users from the community included. We'll be capturing early feedback from these users before we roll out to our next cohort, users with points rankings from 5K-10K, and so on. If you'd like to be a part of DeFi history with us and are just getting started on Project 0 with a lower rank, you can refer new users onto the platform and capture 10% of their points, forever.

Security and Risk Management

The Kamino integration has been audited multiple times, by firms like Accretion and Sec3, and has undergone extensive testing and modeling internally -- with lots more to come. We add specific assets, on specific markets, per venue, to Project 0 only when they pass our ongoing risk checks. These checks include program risk (looking at audits and code, exploring edge cases, fuzzing, etc), quantitative financial risk (price modeling, market liquidity, liquidation analysis, etc), and market risk (strong team, growing product, unique use case that benefits users on Project 0, etc). Risk is never done at Project 0. We've spent a lot of time building out robust data pipelines to use more data on modeling and risk work, and will be publishing more here later this year.

Conclusion

I invite all early accepted users to try be a part of DeFi history with us and try out the Kamino integration on Project 0. There's completely new use-cases and yield waiting for you. Apply on the Project 0 waitlist for the chance to be part of the early cohorts we rollout to!