The USDH vault allows users to deposit their USDH to:
- Earn Liquidations Rewards
- Earn Hubble Reward Rate
USDH Vault Liquidations
In Hubble's initial model, the USDH vault was the sole venue of liquidity to fund liquidations. Vault liquidations are no part of Hubble's hybrid liquidation model, where certain assets are liquidated via the Vault, and other are liquidated via bots that facilitate market-based liquidations.
By staking USDH to the Vault, users can earn crypto at a discount via liquidations.
Hubble Native Yield
The Hubble Reward Rate (HNY) is a percentage APY that is allocated to USDH Vault stakers. The HNY is adjustable, and can be used to adjust USDH demand. Once governance is active, users will be able to vote on the HNY.
The USDH Vault APY is currently calculated by the HBB emissions that users receive when providing USDH, and will soon also include the HNY. In addition to this APY, users also receive crypto assets at a discount when they have USDH staked.
This means that a USDH Vault provider's USDH balance will decrease if a liquidation occurs, but their balance in crypto will increase. When a liquidation occurs, USDH Vault providers earn a net gain of 1.1x, in addition to the HBB rewards and HNY earnings.
No. USDH Vault providers can deposit any amount of USDH.
No. At the moment you can deposit and withdraw USDH from the USDH Vault at any time. There is no lock-in period.