Introducing Hubble Exchange
Multi-collateral, cross-margined perpetual futures protocol on Avalanche.
In the last 2 years, we have seen decentralized protocols in the category of spot markets and lending become disruptors to the centralized top dogs in their sector. On the road towards decentralization, the next obvious stop leads to derivatives, particularly perpetual futures. However, decentralized candidates in this sector so far have barely made a dent in the overarching market of derivatives when put against centralized alternatives. At the time of writing this, the most popular decentralized futures protocols have collectively done only $700M in 24hr trading volume, a stark contrast to what Binance and FTX have done in derivatives in the last 24 hours — that number is 100+ times larger. If there’s anything we know, it’s that disruption happens swiftly. Then why are decentralized alternatives lagging behind to disrupt the top dog when it comes to perpetual futures?
Disruption happens when someone creates a solution that’s not just equally good, but better with an order of magnitude. With the rise of faster, better, and optimized L1s and L2s, we are in a pivotal time in history when for the very first time, there is an opportunity for a decentralized alternative to take a real shot at the perpetual futures market.
Hubble plans to take that shot.
Key-Features
- Trade perps while maintaining full exposure to your favorite coins — Use multiple coins like BTC, ETH, USDC, etc as collateral
- Cross-Margining — Automatically utilize PnL from one position to either offset losses to increase leverage in other positions.
- vAMM based on the CurveCrypto invariant. Crypto pools use liquidity more effectively by concentrating most of it at current prices. As trades happen, the vAMM automatically moves the mark price in the highest liquidity region without creating losses for the virtual pool. This pool is expected to do much better than vAMMs based on the constant product curve.
- Tokenizing perpetual positions so that they can be utilized in other DeFi protocols. As perpetual contracts become increasingly popular, composability will open up entirely new use cases in Defi. e.g. Use your profitable perps position as collateral on lending platforms.
About Avalanche
Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is blazingly fast, low cost, and green.
Such an infrastructure piece is imperative for a futures exchange because the markets need to react quickly in response to asset price changes, especially during volatile times.
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Hubble website is now live!
This post was authored along with Sam, who leads the community efforts at Hubble.
