- Marius Ciubotariu, one of the exchange’s co-founders, announced that Kamino is launching a new swap feature.
- The “intents-based” system promises traders the best price execution by introducing a competitive limit book market among MEV searchers.
Marius Ciubotariu, a co-founder of Kamino, announced the project’s new swap feature on Thursday. Kamino is the biggest decentralized exchange on Solana.
According to Ciubotariu, the platform would be “intents-based,” a relatively new architecture in the realm of DEXs that enables users to request various app behaviors, like moving funds or performing trades.
Kamino Swap, which is presently in beta testing, aims to fix inefficiencies in the current Solana exchange ecosystem, including network congestion, account lock limits, and slippage.
Ciubotariu conducted a demonstration as part of his presentation by concurrently switching coins on Kamino and Coinbase, its centralized rival, the latter of which operated noticeably more slowly.
The platform was first created to increase Kamino Lend’s productivity and financial success. To enhance the liquidation process, the team specifically aimed to establish a more competitive limit order venue. Ciubotariu further pointed out that the prior paradigm created additional costs by requiring liquidators to integrate expensive proprietary codes and incentives.
In order to address these problems, Kamino Swap broadcasts a user’s trade request to a network of “searchers”—that is, bots that bundle transactions in an attempt to find maximal extractable value (MEV)—who then forward the request to a “builder” who constructs the blocks. These “searchers” then bid against each other in an auction to complete the transaction at the best price.
The user receives the best price for their swap because of the fierce rivalry among solvers, who outbid one another to win the deal.
When trading, users will choose a desired price or range, and searchers will even give them a “tip” in SOL, which would be deducted from the value that would have otherwise leaked to miners. In order to win a limit book auction, searchers must offer a tip.
SOL and USDC are the first tokens included in the beta version; further tokens will be added soon.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
