Hubble Protocol: A Collateralized Stable with 0% Interest Borrowing On Solana
Importance of Stable Coins
To me, stables are the most important coins in DeFi and are underappreciated by the majority of crypto investors
Something I broadly express in this thread on Vader Protocol
The need for a censorship-resistant stable coin couldn't be higher than today, especially coming from the traditional crypto ethos of decentralized power
I mean...
Hubble Overview
Enters Hubble Protocol, filling that need by building a Solana-native collateralized stable coin ( $USDH )
$USDH is similar to $DAI and $MIM
Deposit collateral to borrow $USDH however Hubble is unique because it offers 0% interest
The only cost is a 50 bps to borrow or redeem $USDH, no matter how long the stable is borrowed
Further, Hubble allows for accounts to borrow up to 90.9% LTV (MakerDAO only allows up to 67%)
The collateral accepted includes $ETH, $FTT, $SOL, and mSOL to allow for borrowing against staked $SOL
Accepted collateral is planned to expand
Note that Hubble just launched its mainnet in late January and already has $40mm TVL
🔹$26mm of deposited collateral
🔹$13mm $USDH staked
🔹$1mm $HBB staked
Better yet, the backers are big names in crypto including 3AC, Jump Capital,
Delphi Digital, etc
Tokenomics
Here is where it gets interesting
Unlike most DeFi tokenomics, where staking either earns the native token, Hubble uses the native token $HBB and the stable $USDH to create a very unique tokenomic structure with 2 components
1/2) $HBB
$HBB is (i) the governance token AND (ii) stakers earn 85% of all revenue generated from the platform, paid in $USDH
Remember that 50 bps fee to borrow and redeem $USDH
Long term, other revenue generation strategies are being explored as well
2/2) $USDH
Staking $USDH in the stability pool earns (i) $HBB emissions AND (ii) from liquidations, 9.5% of the liquidation value
Team Strength
Looking at the UI and all the blogs posted months prior to mainnet launch, the Hubble team has but some serious thought into how this protocol will run and what the long term game plan is
One blog in particular shows Hubble’s understanding of the stables market and how can $USDH fit into the picture
Hubble Going Forward
Right now, $HBB has a market cap of $125mm and can be found on Kucoincom, Huobi Global, Jupiter Exchange, & orca_so
And $USDH is on Saber_HQ & MercurialFi
I might be missing a few here
This is especially relevant because Hubble has just released a roadmap this week
And it gives an idea of how the team plans to get more $USDH adoption
In a recent AMA with the team, they stated "The primary goal right now is two fold: (i) increase adoption and (ii) strengthen the use cases of $USDH
Basically its all about $USDH
Conclusion
Hubble has an incredible team that put in months of work and thought before mainnet launch
They are backed by big names in crypto and are focusing on building the use cases & adoption of $USDH
There is huge potential for Hubble to capture stables demand on Solana
The tokenomics are structured so that $HBB strongly benefits if $USDH is widely adopted, and the $USDV use case of staking to earn $HBB & liquidation fees is very innovative