Introduction

The world of decentralized finance (DeFi) is rapidly evolving, with innovative projects emerging on various blockchain platforms. One such platform that has gained significant traction in recent times is Solana, known for its high-performance and low-cost infrastructure. Among the many DeFi projects built on Solana, Hubble Protocol stands out as a game-changer, offering users a unique opportunity to borrow USDH, a crypto-backed stablecoin, at 0% interest. By depositing multiple assets as collateral, users can mint USDH at a 90.9% LTV while simultaneously earning yield on their deposited assets.

What is Hubble Protocol?

Hubble Protocol is a decentralized borrowing and lending platform built on the Solana blockchain. It aims to provide sustainable DeFi services, with a core focus on a zero-interest loan mechanism. The platform's native token, HBB, is a utility token designed to improve liquidity for USDH, Hubble's US dollar-pegged stablecoin, and incentivize behaviors to keep USDH at peg.

Hubble Protocol aims to solve the problem of limited liquidity and high fees in traditional financial systems by leveraging the benefits of blockchain technology and tokenization. By tokenizing real-world assets, Hubble Protocol facilitates a more efficient, transparent, and less fee-intensive secondary market. This can lead to portfolio diversification for investors, who can now allocate a portion of their portfolio into alternative investments and private markets, which were previously difficult to access due to high investment minimums and lack of liquidity.

The HBB Token: Utility and Value

The HBB token plays a crucial role in the Hubble Protocol ecosystem. Its primary function is to enhance liquidity for USDH, ensuring its stability and maintaining its peg with the US dollar. The token is used to incentivize behaviors that contribute to the stability of USDH, such as depositing USDH to help maintain its peg.

Users can stake HBB to receive 85% of the revenue generated from the protocol's services, such as the 0.5% minting fee for USDH. Additionally, HBB holders can participate in the protocol's governance, making Hubble a community-driven platform.

In the broader context of asset tokenization, the HBB token facilitates greater fractionalization, a wider investor base, and increased liquidity for real-world assets like real estate and artwork. Tokenization enables the representation of fractional ownership of these assets, allowing investors to buy and sell smaller portions, increasing accessibility and efficiency in the market.

Unique Features of Hubble Protocol

Hubble Protocol offers several unique features that set it apart from other DeFi projects in the Solana ecosystem:

1. Zero-Interest Borrowing: Unlike other platforms that charge interest on borrowed amounts, Hubble only charges a 0.5% USDH minting fee and zero interest on borrowed amounts. This feature allows users to borrow up to 90.9% of the collateral value, which is significantly higher than other platforms.

2. Self-Paying Loans: Hubble offers a self-paying loan feature that allows the deposited collateral to earn yield while sitting in the protocol. This yield can negate the 0.5% minting fee, effectively making the borrowing cost zero.

3. Community Governance: HBB holders can participate in the DAO governance aspect of the Hubble protocol, making it a more community-driven platform.

4. Significant Backing: Hubble Protocol has received significant backing from top-tier VCs in the crypto space, including Billionaire Su Zhu's Three Arrows Capital, Singapore-based Spartan Capital, leading cryptocurrency research firm Delphi Digital, and more.

Tokenomics and Distribution

The HBB token has a total supply of 100,000,000 HBB, with the following allocation:

• 15% for the team and advisors
• 5% for the ecosystem
• 15% for business development
• 10% for the treasury
• 25% for liquidity incentives
• 30% for the token sale

The current circulating supply of HBB is 7,712,572 HBB. The token distribution chart and unlock calendar can be found on CryptoRank for investment planning and optimization.

Regarding vesting periods and lock-ups:

• Team & Advisors: 15% of their allocation (1,760,000 HBB) is locked for 1 year, with the remaining 85% (13,240,000 HBB) vesting linearly over 4 years.
• Treasury: 4,000,000 HBB is unlocked, while 6,000,000 HBB is locked for 4 years.
• Seed: 12% of the allocation (12,000,000 HBB) is unlocked.
• Private Round: 9,200,000 HBB is unlocked.

The Team Behind Hubble Protocol

The Hubble Protocol team is focused on expanding the platform, hiring Solana developers, and incorporating Kamino Finance to help build out the protocol and support DeFi lending in the Solana ecosystem. They aim to learn from past stablecoin and DeFi protocol security issues to develop a secure protocol with a truly stable coin.

The team includes co-founder Marius Ciubotariu, who has a background in traditional finance and experience as a freelance developer, a Fixed Income and Derivatives specialist, and a Senior Software Engineer at Morgan Stanley and Bloomberg LP. Marius discovered the potential of Solana and Rust for lending and yield protocols during the Solana Hackathon in 2021. He then collaborated with Thomas Short to gather funding and put together a team, leading to the launch of Hubble Protocol in January 2022.

Notable Investors and Partners

Hubble Protocol has raised significant funding from notable investors, including:

• Three Arrows Capital
• DeFiance Capital
• Delphi Digital
• Digital Currency Group (parent company of CoinDesk)
• Crypto.com Capital
• ParaFi
• Jump Capital
• Decentral Park Capital
• CMS
• Spartan
• DeFi Alliance
• Mechanism Capital

These investors have contributed to multiple funding rounds, including a $10 million round in January 2022 and a $5 million round in September 2022, which was led by Multicoin Capital.

Conclusion

Hubble Protocol is revolutionizing the DeFi landscape on Solana with its innovative zero-interest borrowing mechanism and the utility of the HBB token. By offering unique features such as self-paying loans and community governance, Hubble Protocol is poised to become a major player in the Solana ecosystem.

With a strong team, significant backing from notable investors, and a focus on risk management and building trust, Hubble Protocol is well-positioned to execute its vision and deliver on its roadmap. As the DeFi space continues to evolve, Hubble Protocol is definitely a project to watch closely.