Supercharging Liquidity with USDH
As the Web3 landscape continues to take shape, amazing applications seem to pop up everyday. The Hubble team is leveraging Serum and the Solana blockchain to help users increase the liquidity and functionality of their crypto assets. Read on to find out the quantum leaps they’ve already caused in the space, as well as the massive changes they have in store for the future of crypto.
Just give us a brief introduction. What is Hubble and what are you guys building at Hubble?
Our core offering is USDH. In essence, Hubble is like a central bank. We’re a printer of USDH, and we issue USDH in the form of loans.
Depositors can come in with collateral (we currently accept 7 different crypto assets), and Hubble provides them with a collateralized borrowing service. So, we print USDH, Hubble users take loans in USDH, and we always have a lot of collateral locked up in Hubble on-hand backing up those loans.
Currently we accept SOL, BTC, ETH, mSOL, and a few tokens from the Solana ecosystem like RAY, FTT, and SRM. We’ve only been started a few months now and are looking forward to bright plans for the future.
How did you decide to build Hubble on Solana?
After Breakpoint, there were a lot of interesting projects going on and that event presented a chance to network within the Solana ecosystem. That’s where we crossed paths with the Hubble founders. Maurius, our more technical founder is a “rust maxi” from back during the Solana Season hackathon. He started going down the Solana rabbit hole, both from a tech and potential perspective, and that led him to meet our other partner Thomas who is more focused on the investment banking side and growing our commercial offering.
That’s really how Hubble came about. After meeting, we all felt that there really was a place in the ecosystem for a Solana-based, native stable coin.
With USDH, the stable coin you guys are building, how does that differentiate from other stable coins both on Ethereum and Solana?
Broadly, there are three types of stable coins available. You’ve got your fiat-backed stable coins like USDT/USDC; you’ve got your CDP stable coins which are usually over-collateralized by crypto assets, which is where Hubble falls in; and then you’ve got this other category which, broadly-brushed, could be labeled as “algo stables” — the most famous, or infamous, one of these being UST.
We feel that the CDP, over-collateralized model is the optimal model to have for a stable coin. Firstly, you have the “crypto native” aspect to it and you actually have it existing and growing through the Defi demand for leverage. That’s the core concept and the reason the native stable coin can exist is users’ desire to leverage their crypto assets for a stable coin. That’s why we have this tagline, “Supercharge Your Liquidity.”
So, if you’re long BTC, long ETH, long SOL, and you want to hold them for a long time, you can keep those assets and mint USDH against them for several use cases. That could mean buying more crypto; you could use your USDH in the real world to buy a car, for example; or it could be to yield in DeFi. Those are the key use cases that we see.
How do you think about driving usage of USDH?
We think about growth in 2 main areas. One is the ecosystem adoption of USDH — the demand for USDH within the ecosystem. The other way is about driving users of Hubble to actually come and use Hubble and mint USDH. But it’s a delicate balance. We can’t have too many users minting USDH without use cases for the token and vice versa.
It’s a constant balance of that supply and demand. We try to balance things out by making it attractive to come to Hubble but also having lots of use cases in DeFi for USDH and having some cool yield opportunities as well.
One of the things that makes Hubble unique is we’re not just trying to take crypto collateral. We’re taking crypto collateral and making it productive. So, instead of just naked collateral, users would be able to gain yield from their collateral.
An example would be mSOL and SOL. That one’s super easy because the advantage of holding mSOL over SOL is massive since it’s liquid staked. You immediately gain SOL exposure plus a staking yield. Users get the financial benefit of holding SOL plus 5% yield. Then, you mint USDH and you can earn yield on that, so you have double yield earning possibilities.
Something further down our roadmap is offering LP tokens within Hubble so users can experience even more yield. For example, if you’re bullish on ETH and you LP ETH with USDH through ORCA, you start to earn incentives and trading fees on that LP token. If you were to bring that over to Hubble, you might end up earning even more yield — to the tune of ETH plus approximately 20% farming yield. That, in turn, could be used to mint USDH. That’s a really interesting value proposition we want to bring to our users.
The new roadmap for Hubble was just released. Can you share some highlights of exciting things you guys are working on in the future?
We’re really excited about more collateral coming and making the collateral more productive. We’ll be bringing some Lido assets over to the platform very soon. We’re also excited about some of the integrations we have coming with different types of assets like LPPs.
Stability and Liquidity Through Hubble
That’s a wrap on another Project Serum Twitter Space interviews. What an insightful look into all the amazing things happening on Serum and in the digital economy as a whole. Thanks to brilliant people in the space like the Hubble team, we’re seeing a new economy spawn right in front of our eyes.
For more on what the Hubble team is doing with Serum, check out the full Twitter Space interview.
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