What is Hubble Protocol? A Solana Built Borrowing & Lending Protocol Deemed DeFi 2.0.

The Solana Network, with one of the highest throughputs of any public blockchain can manage up to 65,000 transactions-per-second (TPS), making it an attractive option for new DeFi projects. Besides speed of transactions, Solana pulls another thorn from the side of crypto, massively reducing cost per transaction, otherwise known as gas fees. Because of the high transaction amounts and the low gas fees for users, Hubble Protocol is launching their next generation DeFi project in early 2022. Hubble was inspired by DeFi projects like MakerDAO and created by a former developer from Bloomberg L.P., who single handedly wrote the Rust smart contracts for “ZeroInterest” in Solana’s first hackathon. That alone, suggests some validation for Hubble and the structure they are proposing for DeFi on Solana.

The Hubble team has been hard at work developing a lending and borrowing platform facilitating the yielding of interest on collateral deposits of crypto assets such as SOL, BTC, ETH and others. Providing multiple assets for deposit as collateral in theory should decrease liquidation risk, making Hubble a more stable platform assuming all crypto doesn’t follow the same path (which unfortunately has been the case to date). Hubble’s uniqueness comes from it positioning itself as a ZERO interest borrowing platform.

How Fee Sharing works on Hubble Protocol

15% of the revenue generated from fees accrued by the platform are directed towards Hubble’s treasury. This gives Hubble funds to support further development of the platform. Once Hubble decentralizes its governance and creates a DAO, the participating community members will vote on how to best utilize the treasury, potentially changing how revenue gets divided and rewarded across the platform.

Initially, Hubble will collects a one-time fee of 0.5% for minting USDH as well as a 0.5% fee for redeeming USDH for any collateral that falls below its pegged requirement. In future phases, additional services are expected to create new revenue streams from which HBB staking participants can earn from.

By contributing USDH to the Hubble Stability Pool, users get a share of liquidated assets when a borrow falls below a 110% collateral ratio. This incentivizes users to support the pool earning profits vs having them shy away due to liquidations on the platform.

What is the USDH coin used for?

Hubble will begin minting USDH on January 28, 2022 assuming there are no delays. Hubble is marketing USDH as a “censorship-resistant” stablecoin due to its backing by of tier-1 crypto assets. Users will have the ability to deposit from a list of BTC, ETH, SOL SOL, ETH, FTT, RAY, and SRM and a soon to be growing list of other currencies to start minting USDH. Borrowing USDH is backed by up to a 150% deposit of these assets adding to its security. Hubble rewards users who stake HBB with 85% of the revenue generated from fees accrued by the platform.

Example: Using SOL to borrow USDH on using the Hubble Protocol

What is the HBB coin used for?

By providing USDH to the Hubble Stability Pool users will receive token rewards from liquidations in the form of HBB (Hubble’s native token). HBB will be used as a tool for governing the Hubble Protocol as a DAO. HBB can also be staked to then earn more of USDH.

Where can I buy $HBB?

You can expect Hubble [HBB] to be listed first on Kucoin. If you don’t have a Kucoin account and want to buy $HBB you can sign up here:

  • Kucoin, the fifth largest exchange by volume offers access to many of top tokens along with many first to market tokens. Additionally, Kucoin exchange offers a multitude of DeFi oriented tools.

What are the different DeFi components of the Hubble Protocol that allow me to earn tokens?

We couldn’t have done a better job ourselves so we are linking you to the well explained “How-to” created by the Hubble team. Learn how to borrow, manage, stake, redeem, liquidate your $USDH and $HBB.

Where can I find more information about the Hubble Protocol?

Will Hubble Protocol be successful?

This is something we don’t know. However, we are more excited about Hubble as a product that will see real utilization fairly quickly. Based on the teams experience, we expect the the project to be managed well and for changes to be “easily” implemented as they undoubtedly discover areas that need attention along the way. Wishing the Hubble team and participants much luck heading into 2022.

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