Hubble protocol raises $5M for Solana based expansion
Hubble protocol is a platform that offers low-interest stablecoin borrowing with its overcollateralized stablecoin USDH. Users are able to borrow USDH against other assets that include Bitcoin, Ethereum, Solana and those loans can have a ratio of up to 80%. New USDH can be minted on the Hubble protocol via deposits of crypto assets as collateral. The collateral can also be used to earn yields. The platform has a native staking and governance token named HBB which users can stake to earn USDH rewards.
Hubble has recently completed a funding round that netted the company $5 million in funding . The funding round was led by MultiCoin Capital. The funds will be used by Hubble to increase employee numbers and bolster the Hubble stablecoin while developing the protocol more.
The goal of Hubble is to create a Solana equivalent to the Ethereum-based MakerDAO. MakerDAO users can trade the native DAI token as Hubble users can trade the USDH token.
Hubble co-founder Marius Ciubotariu told CoinDesk that Hubble plans to hire Solana developers to build upon the protocol and it is also planning to bring in Kamino Finance which” bootstraps liquidity” and aids in the transactions with USDH. In a statement he spoke of how the funding and new partnerships could improve the ecosystem of Hubble
Kamino Finance is concentrated on optimizing liquidity allowing users to have liquidity to use their LP tokens as collateral to borrow more USDH. The stablecoin will then be available to use for more yield throughout the Solana ecosystem.
“This strategic partnership will help us build a robust product ecosystem around USDH and grow its utility and adoption across Solana DeFi. We want USDH to be the most trusted, most ubiquitous, decentralised, over-collateralized stablecoin in the world,”
Hubble had originally gotten $10 million in a funding round from Three Arrows Capital but currently with the fall of three arrows it is hard to tell if the bankruptcy of that company had any affect on Hubble currently. During that round other companies that participated were DeFiance Capital, and Digital Currency Group which is the parent company of CoinDesk.
Ciubotariu stated that Hubble is serious about supporting the Solana ecosystem and lending on that ecosystem. Stablecoins are in a bit of disarray lately as many are wary of the technology especially after the death spiral of Terra’s native stablecoin Luna in May and the hack of Acala which saw that stablecoin lose 99% of its value. There is much for Hubble to learn from the past issues of stablecoins and those lessons can be used to create a new platform that can alleviate those worries.