Collateral Yield
What does it mean to earn yield on collateral assets?
Hubble accepts a variety of yield-bearing collateral assets, such as mSOL, stSOL and daoSOL, with more assets being actively onboarded. You can stake your tokens in our partner protocols, and bring your liquid staked assets to Hubble to mint USDH. While deposited, your assets will continue to earn yield.
In the future, when depositing vanilla SOL, we can delegate it to PoS yield staking protocols (such as Marinade) to earn yield. Other tokens, like BTC and ETH, can be delegated to partner lending platforms. You will be able to change the yield strategy or withdraw your collateral at any time.
How can I start earning yield on my collateral?
By depositing mSOL, stSOL and/or daoSOL to mint USDH on Hubble, your collateral will generate yield from Solana's PoS staking rewards. These token will automatically grow in price relative to SOL, as the staking rewards are reflected directly in the token value.
On which collateral assets can I earn yield?
The number of assets that can earn yield will increase as Hubble’s partnership portfolio increases. Eventually, our goal is to have yield strategies available for all the tokens accepted on the platform.
Does yield strengthen my LTV/Collateral ratio?
Yes. Your earned yield will increase the health of your account as it increases the value of your collateral. You can even use the additional value from a yield strategy to help pay down your USDH loan.
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