Key Takeaways:
- Solana-based DeFi project Hubble Finance has raised $5 million in a fresh funding round
- The latest strategic round was led by investment firm Multicoin Capital
- Hubble Protocol has raised a total of $15 million to date
YEREVAN (CoinChapter.com) — Solana-based Decentralized Finance (DeFi) project Hubble Protocol has raised $5 million in a new financing round. Crypto investment firm Multicoin Capital, which backs blockchain companies, led the latest strategic round.
Hubble Protocol had previously secured funding from other major industry players, including DeFiance Capital, Delphi Digital, Digital Currency Group, Crypto.com Capital, ParaFi, Jump Capital, Decentral Park CMS, Spartan Group, DeFi Alliance, and Mechanism Capital.
The Multicoin Capital-led round has brought the project’s total financing to $15 million.
What is Hubble Protocol?
Hubble Protocol offers a low-interest stablecoin borrowing mechanism through its US Dollar-pegged, over-collateralized stablecoin USDH.
Users can borrow USDH against a variety of crypto assets, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), with a ratio of up to 80% loan to value.
Users can mint new USDH on the Hubble Protocol by depositing supported crypto assets as collateral. However, the collateral must always be more than the amount borrowed. Hence, for every 1 USDH, borrowers deposit more than $1 worth of cryptocurrency into the platform.
Meanwhile, the collateral deposited on the Hubble Protocol also earns yields for the depositor.
“While collateralized, these assets earn continuous yields with Hubble’s Yield-Mechanism, through which Hubble is laying the foundation to a comprehensive Yield Protocol across the Solana blockchain,”
the company claims.
The platform also offers HBB, the native staking and governance token of Hubble Protocol. Users can stake their tokens to earn rewards in USDH.
HBB has already secured listings on centralized exchanges such as KuCoin and Huobi. The total supply of HBB is capped at 100 million.
The HBB currently trades at $0.207, around 90% below its all-time high of $2.43 in April 2022.
Meanwhile, Spencer Applebaum, Principal at Multicion Capital, is optimistic about the platform.
“The world’s most ubiquitous, decentralised stablecoin will be built on Solana… There are only a few ways to safely build a decentralised stablecoin, and Hubble’s over-collateralization approach has been tested through all market conditions,”
Applebaum says.
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Hubble Protocol hopes to improve its platform
In December 2021, Hubble Protocol announced it had raised $3.6 million in a pre-IDO seed funding event. Three Arrows and Delphi Digital were among its initial investors.
A month later, in January 2022, the protocol raised an additional $10 million in funding ahead of its mainnet launch.
This was followed by the closing of its IDO phase in February. As a result, Hubble collected more than $1.2 million and distributed HBB tokens to over 10,000. Moreover, it distributed over 2 million HBB on exchanges.
The Token Generation Event (TGE) occurred on three different platforms simultaneously.
Hubble wants to advance its roadmap and improve its current platform through the latest funding.
“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,”
Marius Ciubotariu, co-founder of Hubble Protocol, told CoinChapter in an email.
The team hopes to innovate with synergistic products and integrations that will make USDH the most attractive stablecoin to hold, transact, or lend.
In addition, Hubble Protocol will advance the use of its stablecoin USDH by launching new DeFi products and services.
Kamino Finance launched
First among such products is Kamino Finance, which launched at the end of August 2022. This serves as the first concentrated liquidity market maker (CLMM) optimizer of its kind on the Solana blockchain.
According to Hubble Protocol, Kamino Finance is a concentrated liquidity optimizer that will allow liquidity providers to use their LP tokens as collateral to borrow USDH. The stablecoin can then transact or earn further yield throughout the Solana DeFi network.
It is an automated market-making solution built on DEXs powered by concentrated liquidity. The protocol optimizes CLMM liquidity by leveraging Solana’s superior speed and cost to rebalance positions and auto-compound fees plus rewards on behalf of users.
As an automated product guided by quantitative analysis and modeling, Kamino seeks to provide users with a market-making tool that requires little to no expertise for participation. As a result, LPs can “set it and forget it” to maximize their earned fees and minimize IL when providing liquidity via Kamino.
“Thanks to the lightning-speed throughput of the Solana blockchain, Kamino is able to provide LPs with higher yields and maximum capital efficiency. This fully realizes the potential of CLMMs. With Kamino, we hope to be paving the way for DeFi’s next explosive period of growth on the Solana DeFi ecosystem,”
Marius Ciubotariu, told during the launch.
With $15 million secured in funding, Hubble Protocol will look to expand its footprint among proponents of stablecoins.
