Hubble’s Phase 1 will focus on bringing the most value to established Solana tokens and HBB holders. We'll do this by offering low-cost and capital-efficient borrowing. At the same time, users can earn yield on their collateral and earn from collecting fees while staking HBB.
Borrowing made easy, cheap, and attractive
SOL, BTC, ETH, etc. holders, motivated to keep upside to their portfolio can spend USDH and earn yield elsewhere by taking a loan up to 80% of their collateral while keeping their tokens locked into our vaults. Upon paying back the debt they will regain access to their collateral.
There will be just a one-off fee of 0.5% of the loan issued, no continuously compounding interest or fixed maturity. Debt owners can pay back their debt whenever they wish.
Example - Taking out a loan against your SOL
The example below shows how one user can take out a 3000 USDH loan by adding 100 SOL as collateral. A fee of 0.5% is added to the user's debt.
Hubble will start out accepting deposits of seven assets as collateral: SOL, mSOL, ETH, BTC, FTT, RAY, and SRM. We intend to expand our multi-asset deposits to other major cryptocurrencies in the future.
Holders of these assets can lock their holdings and issue USDH, a stablecoin, which they can use to invest, spend or stake somewhere else to earn more yield.
Upon repayment of the issued loan, users can unlock their holdings and close out their debt position.