The first phase of the Hubble Protocol begins by focusing on minting and borrowing USDH. Here, the users are allowed to deposit various crypto assets, including BTC, ETH, and SOL, to borrow about 80% LTV (loan to value) in USDH. The bonus for the users is to earn yields on their deposits. The security of these borrows is ensured by the USDH Vault (aka Stability Pool). USDH Vault providers make USDH deposits to pay off the bad loans and earn about ten per cent in liquidated assets. The other bonus for those who deposit USDH in the USDH Vault is earning HBB, Hubble's governance token.
Whether it’s Hubble or any other protocols, LTV stands for Loan-to-Value, which is the total value of the USDH borrowed compared to the total value of deposited collateral. LTV is calculated using the following formula and is expressed as a percentage:
USDH Borrowed Value/ Collateral Deposited Value × 100% = LTV%
To use Hubble Protocol, you need a Solana wallet, some SOL tokens to pay the gas fee, and the accepted tokens to borrow on Hubble. Maybe the best thing about Hubble Protocol is its integrated platform where it offers all services on its own Decentralized Application (DApp).
Yes, once when borrowing from Hubble Protocol and another time for Stability. The cumulative interest on Hubble is currently zero. When users borrow from this protocol - which means each time they do so - they need to pay a 0.5% fee of the total USDH borrowed, i.e., borrowing 100 USDH, you must pay 100.5 USDH back.
Whenever USDH goes lower than its peg, the Hubble Protocol raises the Stability Fee to incentivise repayments of USDH loans. When there is too much USDH in the market, USDH's price can decrease and go less than parity with 1 USD. Then, when the Stability Fee is raised, borrowing USDH gets more expensive and repaying USDH loans becomes a cost-efficient alternative. When users get USDH from the market to repay the loans, the market supply of USDH makes contracts and increases prices back to $1. Also, A part of the Stability Fee collected from the users is rewarded to those who stake USDH in the USDH Vault.
Hubble Protocol has introduced a Solana-native stablecoin pegged to USD, which is also censorship-resistant. Overcollateralisation of USDH is done using an array of crypto assets, i.e., SOL, mSOL, BTC, ETH, RAY, SRM, FTT and more to come. In addition, Hubble has a governance token, HBB.
HBB token is Hubble Protocol’s native token that will also be used for governance when Hubble becomes a Decentralized Autonomous Organization (DAO). Hubble users will take part in the protocol’s decision-making process by holding and staking HBB. Currently, the main function of HBB is to create value for the users as USDH rewards.
The minimum amount of borrowing from the Hubble Protocol is 200 USDH (200$). There is no maximum limit, and you can borrow as much as you can provide collateral for. To borrow from Hubble, you need to follow these steps:
Hubble Protocol goes under regular audits to ensure the users’ safety and security. You can check the list of its current audits here. Also, Hubble will announce any major changes to its smart contracts. Meanwhile, Hubble benefits from a bug bounty program and will reward up to %500,000 if the users can report a critical bug. Check here to see how Hubble came into being.
The future phases of Hubble’s roadmap are focused on launching services to enhance the platform's utility. Hubble strives to build products to turn DeFi into a source of financial services worldwide.
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