Today, we’re excited to support the launch of an intelligent looping strategy on Solana. This strategy leverages recursive lending and borrowing of USDG—Paxos’ newly integrated, trusted stablecoin—while enabling users to deposit Jito SOL, Solana’s leading liquid staking token, into Kamino Finance.

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This initiative addresses a well-known limitation in DeFi: although recursive strategies are a common method for gaining leveraged exposure, they are often static and reactive. Existing platforms provide limited guidance on when to de-risk, adjust leverage, or take profits, leaving users exposed to liquidation during volatile market conditions.

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Through this collaboration, we aim to shift looping strategies from passive execution to active, intelligence-driven management.

USDG: A Compliant Foundation for Borrowing and Lending

USDG, issued by Paxos Digital Singapore, will serve as the core stablecoin in this strategy. USDG powers the Global Dollar Network, an open network designed to accelerate and reward global stablecoin adoption, with partners including Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood. 

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As a US dollar-backed stablecoin that is substantively compliant with the Monetary Authority of Singapore’s upcoming stablecoin framework, USDG brings regulatory clarity, transparency, and institutional-grade trust to the DeFi ecosystem. 

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Its integration into Kamino Finance enables users to borrow and lend USDG against Jito SOL collateral, forming the basis of the looping mechanism.

RoboNet’s Looping Agent, Powered by Allora’s Intelligence Layer

This looping agent strategy is anchored by Jito SOL, Solana’s liquid staking token, which users can deposit into Kamino Finance to initiate a leveraged position. Through recursive lending and borrowing of USDG, users can gain amplified exposure in an automated and structured manner. Unlike traditional looping strategies that rely on constant user oversight, this approach is fully managed by an autonomous agent developed by RoboNet—the launchpad for AI-powered agents.

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The agent is designed to dynamically adjust leverage, manage risk, and take profits in response to changing market conditions.

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The intelligence behind this system is powered by Allora—a decentralized, self-improving AI network composed of specialized machine learning models. These models generate forecasts on asset prices, volatility, and more across multiple timeframes, and are evaluated based on their historical performance under similar market dynamics. Allora aggregates these outputs into a single, high-confidence inference that guides the RoboNet agent’s decisions.

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This enables a more adaptive and resilient strategy, capable of optimizing performance while minimizing the risk of liquidation.

Moving Toward Smarter, Safer DeFi

In essence, here’s how the intelligent looping strategy will work:

• Deposit Jito SOL: Users supply Jito SOL on Kamino Finance to initiate the strategy, unlocking capital efficiency through liquid staking;
• Borrow USDG: Using Jito SOL as collateral, the agent borrows USDG—bringing stability and assurance to the loop;
• Loop to Gain Leverage: The agent recursively lends and borrows, compounding exposure to maximize yield in a controlled environment;
• Autonomous Agent Execution: Built by RoboNet, the agent manages all actions—removing manual intervention and reducing user burden;
• Allora as the Agent’s AI Brain: Real-time forecasts from Allora’s decentralized AI guide the agent’s decisions on leverage, profit-taking, and risk;
• Proactive Risk Management: The agent dynamically adjusts to market shifts, aiming to preserve capital and avoid liquidation events;
• Adaptive Performance Optimization: The strategy continuously evolves, targeting higher performances with smarter, data-informed execution.

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Together, we intend to demonstrate how machine intelligence can enhance strategy execution, reduce user burden, and bring greater resilience to decentralized markets. Stay tuned for more.

About Global Dollar Network

The Global Dollar Network is an open network designed to accelerate and reward global stablecoin adoption. It is powered by Global Dollar (USDG), a US dollar-backed stablecoin issued by Paxos Digital Singapore Pte. Ltd. that is substantively compliant with the Monetary Authority of Singapore’s upcoming stablecoin framework. USDG is a safe and trusted stablecoin designed to support the needs of regulated institutions that maintain higher standards of operation as it is backed by only high-quality liquid assets. Global Dollar Network partners include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood.

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To learn more, visit the USDG website, X, and Developer Docs.

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About RoboNet

RoboNet is a launchpad for AI agents which automate and optimize financial operations. With Allora as the intelligence layer, RoboNet aims to transform the DeFi landscape by providing users with advanced, AI-enabled DeFi strategies.

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To learn more about RoboNet, visit the RoboNet website, X, Blog, Discord and Telegram.

About the Allora Network

Allora is a self-improving decentralized AI network.

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Allora enables applications to leverage smarter, more secure AI through a self-improving network of ML models. By combining innovations in crowdsourced intelligence, reinforcement learning, and regret minimization, Allora unlocks a vast new design space of applications at the intersection of crypto and AI.

To learn more about Allora Network, visit the Allora website, X, Blog, Discord, Research Hub, and developer docs.