Invested by Three Arrows Capital, “Hubble Protocol” will provide zero-interest loan services on Solana

Solana is one of the fastest-growing new ecological public chains this year, with various projects gathering and attracting capital attention.

Recently, Hubble Protocol, a decentralized lending project based on Solana, completed a $3.6 million seed round of financing. Three Arrows Capital (Three Arrows Capital), Jump Capital, CMS, Spartan, Delphi Digital, Mechanism Capital, DeFi Alliance, DeFiance Capital and other institutions participated cast.

DeFiance Capital stated that it is pleased to support this financing because it believes that Hubble Protocol will become"One of the most important Solana ecological stablecoins". DeFiance Capital added that the project’s lending and minting mechanism is"an exciting innovation"。

Hubble Protocol, a "zero interest rate" DeFi project for lending and structured products, plans to provide low-cost, capital-efficient DeFi services on Solana. One of its core functions is to allow users to mint a decentralized stablecoin called USDH, which will be collateralized by user deposits.

Specifically, in the first phase of Hubble Protocol, these collaterals include SOL, BTC, ETH, RAY, SRM, and FTT, and other cryptocurrencies will be added as collateral deposit options in the future. According to the official white paper, interest-bearing tokens such as mSOL or pSOL can also be used as collateral, demonstrating the strong composability of Hubble Protocol.

In addition, the borrower deposits collateral, and must ensure that the collateral rate is above 110% - to lend 100 USDH, a collateral with a value of more than 110 USDH must be deposited. Compared with MakerDAO's 150% mortgage rate, Hubble Protocol has a lower mortgage rate and a higher capital utilization rate.

According to the Hubble Protocol roadmap, the first phase of lending products is planned to be launched in January 2022, and zero-interest loans will be provided at the beginning of the launch (0.5% fee each time in the future). In the next phase, Hubble Protocol will launch more services to improve the utility of the platform: in the second phase, structured products will be launched; in the third phase, credit loans will be provided. "DeFi is a relatively new financial system, and as DeFi continues to evolve, Hubble seeks to adapt to the changing market and provide products that will make DeFi a source of financial services globally."

In terms of tokens, Hubble Protocol's native token is HBB, which enjoys the governance rights of the project; at the same time, Hubble Protocol will also distribute 100% of the income fees to users who hold HBB; on the basis of the lending agreement, Hubble Protocol will be Its community offers structured products and tailor-made loan services.

According to the plan, Hubble Protocol plans to conduct a public offering to raise funds in early 2022, and the project will be transformed into a decentralized autonomous organization in the future.