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DeFi, short for decentralised finance, is a rapidly expanding industry with so many developments that it’s difficult to keep up with the most promising networks. Solana is making a name for itself as the competitor to Ethereum and other networks in the race to build the best DeFi crypto network. With huge advantages over Ethereum and other layer 1 blockchains, the Solana ecosystem has grown rapidly and stands out from the crowd. The Solana ecosystem is growing quickly, as it has become the 10th largest cryptocurrency by market cap.
With Hubble’s new borrowing protocol, they are taking advantage of Solana’s ecosystem for structured products and under-collateralised lending. The user can attain this by borrowing against multi-asset collateral that requires no interest payments, no maturity dates, or recurrent interest payments. The users will receive USDH, Hubble’s native stablecoin pegged to the dollar, in exchange for the upfront 0.5% fee.
Why is Hubble Platform censorship-resistant and decentralised?
Investors and lenders alike desire a platform where no one can control that protocol for their own personal gain. Thus, the Hubble platform is censorship resistant, meaning no one can prevent anyone from joining a platform or network. As part of Hubble Protocol, censorship resistance ensures that all rules governing a network are set and followed equally by all users. An immutable blockchain prevents tampering with transactions within a network, making them censorship-resistant. Upon completion, all nodes within the network receive the transaction, and it becomes virtually impossible to change.
Since traditional finance products are rife with barriers to entry, censorship resistance is particularly useful for decentralised finance (DeFi) products. As a result, the Hubble Protocol works with the DeFi approach to bypass the various intermediaries interfering with transactions and preventing access to certain types of people. By using DeFi, Hubble makes traditional finance censorship-resistant.
In conclusion, USDH provides a trustless way to utilise or hold a token resistant to censorship. In USDH, 100% of collateral is provided by decentralised crypto assets, and the minting process is controlled by smart contracts that can be verified on-chain.
Therefore, USDH or its collateral shouldn’t be frozen by any central authority, and USDH’s facts or figures shouldn’t be created arbitrarily. There are no human intermediaries involved in this trustless system, and it uses computer code to run, not human intermediaries. USDH’s existence and code can be trusted to the highest degree. To maintain the highest level of security, the Hubble Protocol has been audited several times, and it will continue to be audited.
What makes USDH stand out from the rest?
Participation in DeFi is better with decentralisation than centralisation, especially for those reading this. However, decentralised finance is still relatively new. DeFi’s unwritten roadmap is barely underway, but Hubble Protocol is anticipating DeFi’s future with a long-term focus. Hubble stablecoins is decentralised and thus more resistant to censorship than fiat-based options. For example, most of DeFi’s total value locked (TVL) comes from decentralised exchanges (DEXs), while stablecoins are the most common asset held within a DEX.
Additionally, decentralised stablecoins operate 100% on-chain, making them more transparent than fiat-backed stablecoins. Transparency for USDH collateral does not require lawmakers to pass laws since this information is publicly available and accessible anywhere. Therefore, stablecoins like USDH have a significant chance of sustaining DeFi, which is why decentralised stablecoins are important. The Hubble Protocol endeavours to ensure the longevity of DeFi through USDH.
How will USDH be your first choice for stable coins?
Stablecoins attract users for a specific reason: their price stability. Historically, decentralised stablecoins (not backed by fiat) have had difficulty maintaining their value.
Fortunately, a solution is unquestionably capital efficient, which is the Peg Stability Module. Starting with UST, Hubble users will be able to swap USDH 1:1 with other decentralised stablecoins when our PSM launches. Taking advantage of this development is a win for USDH, since it will have a proven mechanism for maintaining its peg, and users can realise profits even if they simply buy and sell USDH. USDH is prone to trade above peg, allowing users to take advantage of this by minting a few dollars’ worth of USDH with one UST and then swapping that newly minted USDH for another token. In contrast, users can redeem USDH within the PSM for stablecoins if USDH trades below the peg.
USDH also offers a way to increase one’s exposure to the crypto market in addition to price stability. Users can leverage USDH as collateral more than just a stablecoin as a store of value.
Additionally, by borrowing USDH against SOL, users can diversify their portfolio’s exposure to the market by exchanging the borrowed USDH for other tokens such as BTC or ETH. They could also increase borrowing power by depositing his newly acquired tokens on Hubble platform. Those interested in participating in or leveraging the crypto market might find USDH an important tool.
What is the purpose of Hubble using Solana blockchain?
Despite DeFi’s rapid development and great scope, Ethereum’s community was soon plagued with problems resulting from network congestion and Ethereum’s incapacity to scale. According to some reports, DeFi on Ethereum suffered from its own popularity. The high fees, slow speeds, and counter-productive mining practices of Ethereum made it clear to many users that the network was no longer capable of supporting broad and democratic participation in DeFi. Cryptocurrencies like Ethereum were no longer the “world’s computer” but only available to the very wealthy.
Solana has experienced the most growth in decentralised finance, like Ethereum. On-chain trading protocols like Solana have proven attractive due to their fast block times and low transaction fees. With the Solana ecosystem’s real-time block finality, Hubble’s traders can calculate profits and losses in real-time. Solana’s high throughput and low transaction fees have allowed many new projects, such as Hubble, to be built.
Hubble Platform uses Solana because it offers low-cost, instant, sub-second block finality and highly efficient blockchains that facilitate dozens of decentralised applications. There are numerous decentralised exchanges and market makers in the Solana ecosystem. It also features yield aggregators, stablecoin swap platforms, and more. Solidity, the programming language used in Ethereum, is not supported by Solana. It lacks EVM compatibility, which means it may have difficulty competing with Ethereum’s network effect. Solana instead uses Rust for its development. The Rust programming language is very popular among developers.
Hubble relies on Solana because it provides low-latency block times and the biggest bandwidth of any blockchain. Web-scale performance makes Solana one of the most user-friendly layer 1 blockchains, enabling broader adoption. Furthermore, Solana has more capital at its disposal, which can be used to speed up the development of numerous native projects.
Conclusion
Decentralised finance (DeFi) is making strides on the world’s fastest blockchain, Solana. Solana is preparing to supercharge DeFi with current speeds of up to 65,000 transactions per second (TPS) and block times of around 400 milliseconds per block. There is a rapidly expanding ecosystem for decentralised finance (DeFi). Hubble Protocol’s pleasure is to contribute to this growth by providing users with a service that lets them borrow USDH to access the liquid assets they own over the long term.
The Hubble Protocol lends users the option of borrowing using the DeFi space at a cost-efficient rate. The Hubble Protocol is dedicated to making decentralised finance (DeFi) as easy as possible. Hubble’s developers want it to be simple and convenient to use, so UDSH can become the most sought-after stablecoin on Solana. With its decentralised nature and censorship-resistant features, the Hubble Protocol is making every effort to become the next big thing in stablecoins.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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