Hubble Uses Switchboard Oracles to Secure $5.2M+ TVL

Switchboard
Switchboard
Published in
4 min readOct 27, 2023

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Hubble is #Plugged in by Switchboard

“At Hubble, we’ve relied since inception on Switchboard extensively, for tokens such as stSOL or mSOL.

Switchboard was able to offer increased security on the protocol level, through their features such as TWAP prices and increased reliability for fresh, valid and up-to-date prices.

Lastly, but not least, Switchboard’s value add comes from the creation of custom price feeds. Be it an exotic collateral or a newly bridged asset, Switchboard is able to adapt to customer demands and offer custom price feeds for any assets we need.”

Synopsis

Story: Hubble protocol is a stablecoin borrowing platform that allows users to deposit any combination of crypto assets such as BTC, ETH, SOL and more to mint USDH in return.

  • Optimize yield: Use your collateral to earn yield elsewhere while keeping upside to your collateral.
  • Collateral flexibility: Use assets such as BTC, ETH, SOL and other collateralized assets such as staked SOL tokens.
  • Get leveraged: Use varying loan-to-value ratios (LTV) to leverage your assets.
  • Democratized Liquidations: Deposit USDH in Hubble’s USDH Vault to support the platform’s health. In return, you earn a net positive ~10% difference from liquidated accounts. This mechanism, combined with market-based liquidations, ensures the protocol’s solvency.
  • Strong Security: Hubble prioritizes security with five security audits and independent testing.
  • USDH Peg Stability: The platform maintains USDH stability via the Peg Stability Module, enabling frictionless swaps and managing demand through Stability Fees and Hubble Native Yield (HNY).

Situation: In order for Hubble to maintain competitive advantages and the best user experience, the Hubble protocol needs a reliable pricing source to open, close, and settle loan positions even in volatile market conditions.

Switchboard Solution: Hubble integrates with Switchboard to access customizable data feeds where they can utilize price indicators such as TWAPs, price bands to maintain fair market value and list markets swiftly in a secure, decentralized manner.

Let’s dive deeper into how Hubble utilizes Switchboard!

Story

Hubble Protocol is a stablecoin borrowing platform that allows users to deposit any combination of crypto assets such as ETH, SOL and more to mint USDH in return.

USDH has a wide range of use-cases across the Solana ecosystem, with integrations on a non-exhaustive list of platforms like Orca, Raydium, Solend and more. On top of earning yield with USDH, Hubble accepts yield-bearing assets (such as staked SOL tokens) to be collateralized as well, retaining the exposure to the staking APY.

These loans on Hubble are interest free and have no repayment deadline. The Hubble platform also offers a sophisticated loan management facility, allowing users full control of how they choose to adjust their loan parameters throughout the loan’s lifetime.

Situation

In order for Hubble to maintain competitive advantages and the best user experience, the Hubble protocol needed an oracle.

  • Reliable price data: The oracle needs to provide a reliable pricing source to enable Hubble to open, close, and settle loan positions even in volatile market conditions.
  • No single point of failure: Hubble wants to ensure there are no single point of failure.
  • Prevention of price manipulation attacks: The oracle needs to be able to tailor fit to Hubble’s pricing methodology to provide a fair market value to its users.

Switchboard Solution

Hubble uses Switchboard as it supports a secure, decentralized oracle network that allows Hubble to customize their data feeds specifically to their needs.

A sample job description of a stSOL data feed

In order to maintain the competitive advantage, Hubble is able to select the data sources (from CEX, DEX or other sources) for each market pair, allowing them to ensure the transparency of the origin of market data and the resiliency of the data used. For example, Hubble has the ownership to dictate if they should use the data from market A or market B dependent on volume or liquidity metrics. On top of each market pair, Hubble can utilize price indicators such as TWAPs to ensure a fair market value for its users and prevent prices from price manipulation attacks to be accepted.

With the flexibility to create data feeds with any market data, Hubble is able to open markets swiftly and securely, providing users with the best product. Hubble’s USDH token can be used as collateral in other DeFi platforms as Switchboard is able to support a USDH data feed for other protocols.

Summary

USDH held across a close total of 50,000 users

Hubble protocol is a stablecoin borrowing platform that allows users to deposit any combination of crypto assets to mint USDH in return. To date, USDH is held across a close total of 50,000 users. This is secured and made possible with Switchboard.

Explore Hubble’s DeFi application and join our developer community to ideate, learn and build with like minded individuals!

It’ll be electrifying.

About Hubble: https://hubbleprotocol.io

Hubble’s Documentation: https://docs.hubbleprotocol.io

Contact us: https://switchboard.xyz/contact

Twitter: https://twitter.com/switchboardxyz

Discord: https://discord.gg/switchboardxyz

Docs: https://docs.switchboard.xyz

Github: https://github.com/switchboard-xyz

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