Hubble is a decentralized finance (DeFi) protocol built on Solana. Hubble's core product is USDH, a decentralized stablecoin that can be borrowed against your crypto assets.
Users can deposit multiple crypto assets like SOL, ETH, and kTokens to borrow USDH. In turn, USDH can be used to serve various purposes across Solana DeFi.
Hubble will offer multiple USDH borrowing vaults, with various asset combinations and vault-specific parameters such as Stability Fees and Deposit Caps. USDH borrows are guaranteed by a combination of Hubble's USDH Vault (Stability Vault), and bots that facilitate market-based liquidations.
The USDH that users deposit into the USDH Vault is used to pay off bad loans, while depositors earn a net positive ~10% difference in liquidated assets.
In the coming phases of development, the protocol will launch various products and services to bring further utility to the platform, and USDH itself.
SOL, BTC, ETH, etc. holders, motivated to keep the upside to their portfolio, can deposit their assets and borrow USDH to use it across various protocols on Solana. While a user's loan is active, their assets retain full exposure to the market. Upon paying back their debt, users will regain access to their collateral. If the value of their collateral increased while it was deposited, they receive that entire value back upon repaying their debt.
Loans have no fixed maturity, so debt owners can pay back their debt whenever they wish.
In addition to keeping the upside on collateral, users can earn yield on their deposits. At present, this is facilitated by Hubble's onboarding of yield-bearing collateral. Hubble currently accepts mSOL, stSOL and daoSOL as collateral, with numerous other yield-bearing assets being onboarded imminently.
In the future, users will be able to opt-in to have their collateral allocated to partner protocols to earn yield. Users will have the freedom to choose from multiple yield-earning strategies.
Decentralized governance, in order to be meaningful, needs to allow the most active participants in the community to have an effective voice. To incentivize participation we are combining features of existing models that we find work best, especially:
- General directive proposals where development work from the core team is dictated by the community, once a quarter.
- Group proposals where the community can unite to make a proposal even if individual voters wouldn’t have enough voting tokens.