Invariant announced its collaboration with Hubble Protocol, to bring its users a lot of opportunities to participate in DeFi and pursue capital-efficient liquidity solutions on Solana.

What is Hubble Protocol?

Hubble is supercharging users’ liquidity with a collateralized debt position (CDP) stablecoin called USDH.

Moreover, Hubble allows you to borrow USDH by depositing a whole basket of different assets as your collateral. Doing so gives you access to a maximum 80% loan-to-value (LTV) on your long-term holding tokens like SOL, BTC, ETH, and tokens from the Solana ecosystem.

Indeed, USDH can be used to earn yield all over Solana, and now you can earn yield by LPing USDH on Invariant. In addition, Hubble Protocol allows you to stake USDH and HBB tokens for rewards on its platform.

Why should you borrow through Hubble?

If you believe that SOL is going to the moon and don’t want to sell, Hubble provides you with a great opportunity. Instead of selling, you can deposit your SOL on Hubble and borrow USDH to do whatever you want while you wait for SOL to appreciate in value.

When you borrow USDH, all you have to do is pay a one-time 0.5% fee. When you pay back your USDH loan plus the fee, you can withdraw your SOL at any time.

What is USDH?

USDH is a stablecoin pegged to the US dollar, and it has been developed by Hubble as a Solana-native and censorship-resistant token. You can mint it through Hubble Protocol, or you can also trade for it on DEXs such as Raydium, Orca, Invariant, and many others.

Why USDH?

The DeFi system, like any economy, depends on a stable currency as a unit of account. Stablecoins are DeFi’s unit of account, and they are usually pegged to the US dollar, the world’s de facto reserve currency.

4 types of stablecoins

• Fiat-collateralized
• Crypto-collateralized
• Commodities-collateralized
• Algorithmic (however, this approach has already shown several times that it is not fully safe, as in the case of Terra’s UST)

However, Minting USDH gives users the flexibility to choose what assets they want to borrow against. Because there are currently nine tokens that can be use as collateral, with more on the way. Anyone can verify USDH’s collateral backing by checking data on-chain, which is much more transparent and open than fiat-backed stablecoins.

Why should you use USDH on Invariant?

You can use USDH to become a liquidity provider on Invariant. All you need to do is to open a position in a USDH liquidity pool. If you want to know how to become a liquidity provider (LP) check their tutorial.

When you become a USDH LP, you can earn fee rewards from trades that use your tokens, and with Invariant’s concentrated liquidity, more of your tokens are put to work than with other DEXs. This is a low-risk DeFi play that can earn you consistent real yield.

Also, after you open a provide USDH liquidity in the Invariant pool. Users will be able to stake your position in the yield farm on the Farms page and earn even more. Currently, HBB token rewards are being distribute to users who deposit USDC-USDH liquidity on Invariant.

About Hubble

Hubble protocol allows users to take interest-free loans against multiple crypto assets. Hubble works with USDH, Hubble’s decentralized stablecoin.

Website | Twitter

About Invariant

Invariant is the first significant Automated Market Maker (AMM) DEX providing concentrated liquidity on Solana. 

The Invariant protocol is a peer-to-peer system for exchanging assets on the Solana blockchain. The protocol is implement as a set of smart contracts that prioritize censorship resistance, security, self-custody, and an ability to operate without using trusted intermediaries who can selectively restrict access.

Website | Twitter

SOURCE

https://medium.com/@invariant_labs/invariant-x-hubble-protocol-3cb241a5f539

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Partnership HighLights

This partnership of Hubble and Lido Finance took the first significant steps toward boosting stSOL liquidity throughout Solana with USDH.

Lido is one of the biggest protocols in DeFi as measured by total value locked (TVL). They’re doing great work to bring liquidity and composability to staking across multiple blockchains, and its users will benefit from the addition of stSOL to Hubble.

Learn More About Lido Finance and stSOL Liquid Staking Tokens

To begin with, Lido has helped over 110,000 users stake billions of dollars ($14.7B at the time of writing) worth of tokens on multiple blockchains, most notably Ethereum. Their liquid staking token on Ethereum, stETH, has helped users stake over $9 billion worth of ETH.

Furthermore, Lido has staked over 3,000,000 SOL in exchange for stSOL, a liquid token that earns a staking yield that can be used across Solana DeFi while staked with a Solana validator.

Each stSOL that users receive represents one SOL staked to help protect the network and facilitate transactions. The Lido DAO has selected a group of 14 leading validators to help diversify staking across the Solana ecosystem. Additionally, they plan to expand this into the future, with more onboarded who meet high availability and performance criteria.

Hubble is Excited to Bolster stSOL Liquidity with USDH

Over the next two weeks, they will be kicking off the first phase of Hubble’s partnership with Lido. They planned to launch two liquidity pools and excellent yield farming opportunities for their users.

Users will be able to deposit liquidity and earn rewards when stSOL-USDH pairs go live on Raydium this Thursday, May 12th. They include another rockstar Solana decentralized exchange (DEX), Orca, in their plans to help support stSOL and USDH liquidity on the network, and users will also be able to deposit concentrated liquidity through Orca’s Whirlpool from May 19th.

Both of these pools will be offering liquidity providers (LPs) incentives in LDO and HBB, each project’s native token. So, get ready to enjoy some juicy yield for participating in the stSOL-USDH pools on your favorite Solana DEX!

About Hubble

Hubble protocol allows users to take interest-free loans against multiple crypto assets. Hubble works with USDH, Hubble’s decentralized stablecoin. So borrowing USDH, with 0% interest, gives users the chance to hold their tokens long-term and pursue whatever opportunities arise.

Website | Twitter

About Lido Finance

Lido is the leader in liquid staking (when measured by TVL) with a priority on contributing to ecosystem improvement, increasing blockchain decentralization, and making staking beneficial for all the participants on every chain it has launched.

Website | Twitter

SOURCE

https://blog.hubbleprotocol.io/hubble-partners-with-lido/

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