Why Use Hubble?
Instead of just holding your tokens in a wallet, you can make them work for you.
Take a loan in USDH and use it across Solana to earn yield. Once you are done with that position, you can return to Hubble and pay back your debt. At the end of the process you have your collateral back and the profit from deploying your stablecoins in DeFi. If your collateral has increased in price, you have benefitted from that price action as well.
In the future, users will have the ability to allocate their collateral assets to various yield strategies, which will utilize their assets in one of Hubble's partner protocols.
Hubble has various LTV (loan-to-value) ratios across different vaults and assets. This ranges from 95% for stablecoin deposits, coming soon, to 80% or lower for volatile assets. These LTVs allow you to leverage your assets according to your risk appetite. Note that we recommend caution when leveraging your positions.
Deposit USDH into Hubble's USDH Vault (formerly Stability Pool) and help keep the platform healthy by guaranteeing loans are repaid. As a reward, USDH Vault providers earn a net positive ~10% difference from liquidated accounts.
Users who deposit USDH in the USDH Vault also earn HBB rewards at a constant rate.
The USDH Vault liquidation model works in combination with market-based liquidations to ensure protocol solvency.
Security
Hubble exercises extreme caution in its development process. No single line of code is deployed if it has not been subject to our testing process. Hubble does not buy in to the "move fast and break things" ethos. Typically, robust updates and features are delayed until they have gone through an independent security audit. Thus far, Hubble's code-base as undergone 5 security audits.
USDH Peg Stability
Since Hubble's launch in January 2022, the USDH peg has been remarkably stable despite turbulent market conditions. USDH now maintains its peg primarily via Hubble's Peg Stability Module (PSM), a peg-stabilizing mechanism initially introduced by MakerDAO.
The PSM allows for zero-slippage swaps between USDH and USDC, enabling frictionless below and above-peg arbitrage. Alongside the PSM, Hubble can use Stability Fees and the Hubble Native Yield (HNY) to impact USDH demand and thus USDH peg.
Last modified 4mo ago