Hubble Protocol was hosted by Crypto Rand for an AMA with their Discord community. As they described the event, it was a "Reddit-style AMA," which means lots of typing and that you can get a full recap if you missed it!
In the following recap, you will find Dawid (DMS) and Akeel (yellingfore) fielding questions during the event. The users who asked each question will remain anonymous.
Crypto Rand Community x Hubble AMA
User 1: Hubble team, welcome!
With so many amazing Defi projects popping up everywhere, what will you say its the main features that will differentiate you?
DMS: I think the most important question is what we are not. So we are not a lending protocol, or an insurance protocol. What we are is a ‘borrowing’ protocol that allows you to mint a stablecoin representation of a token (or basket of tokens) to then let you engage elsewhere. With this basic theory in mind, there are a few key differentiators than most. Great opportunities for high leverage positions with relatively less risk comparatively (here’s an example: https://twitter.com/HubbleProtocol/status/1513897802933358609)
The ability to ‘double dip’ - meaning regardless of what you do with your newly minted $USDH you can still earn on the underlying asset
We allow for democratized liquidations. So if someone is liquidated you only need to be in the Stability pool to share in the rewards. This means you can be relatively ‘light touch’ with the product, while still enjoying much of what it has to offer.
Then there's another key factor, which might just be the one that excites me most: the ability to earn a yield on collateral, via partnerships/integrations we are establishing with other protocols. This will enable your loans to essentially be self-repaying over time, while you are earning with your borrowed USDH all the while.
This does add another layer of smart contract risk, as most integrations do, but it's a phenomenal opportunity IMO. Devs are not far-off from done with the backbone of this.
User 2: So many Defi projects are BOOMING. They also often face many UI/UX problems and challenges. So what's your plan for addressing UI/UX and how do you go about it? Are you planning to improve the user experience and make your platform easy to use?
DMS: You get it. UI and UX are absolute key, and we emphasize them almost obsessively in our development process. We recently launched a platform-wide UI update, which revamped (and, in our opinion, improved) the UI and UX. (Link to our app if you want to check it out: https://b.link/Hubble-App-CR ) The best way to go about having a top-notch UX and UI is to get input from the people who actually use it.
We spend a lot of our time in the community, chatting with our users and getting serious feedback, and all of this is aimed at improving our product/platform experience. We have calls with users to discuss their experience of the platform, and how they think we can build to improve it. (If you’ve been using the app, or have some first impressions and insights to share, our Co-founders are super happy to jump onto calls with users, so reach out if you want to chat.)
yellingfore: Funnily enough - a user gave us feedback yesterday which we incorporated in less than an hour. Admittedly it was an upcoming name change, but still - we do listen (and are only as good as the feedback we get from you awesome folks!)
User 3: When talking about liquidations in recovery mode, how will it be implemented? You are saying that during the recovery mode some positions with LTV of over 66.6% can be liquidated. Which mechanism chooses whose positions are liquidated first? Also - even in recovery mode the system can withstand only a 50% drop in asset price. What happens in case of 80-90% price drops or in case a token like Raydium (just an example) becomes totally worthless?
DMS: Recovery Mode has been discussed since before launch, both internally and within the community a great deal as well. We discussed it in detail in the March Town Hall, and came to the conclusion that our protocol will be more sustainable in the long-run, and more user-friendly if Recovery Mode was removed, and the protocol parameters permanently adjusted. Recovery Mode will be removed within this week, and the forum discussion surrounding this is ongoing: https://forum.hubbleprotocol.io/t/recovery-mode-removal/49/11
To summarize though: Why remove Recovery Mode? Because Recovery Mode = An unpredictable loan experience, where the actions of another user can put your position at risk without your own doing. The new Maximum LTV will be 75% for new loans, and current loans will remain at 90.9% Liquidation Ratio, but all the actions on current loans will need to bring LTV down to eventually align with the new system.
We know that a 75% LTV is not as attractive as 90.9%, but we believe that being more financially stable as a protocol, as well as giving users a more stable loan experience, is absolutely necessary. To answer the second part of your question: In the new system, drastic price drops will be liquidated accordingly, and a 90% drop in the price of a token will have no effect on protocol solvency, as liquidations will balance protocol LTV (which can not go higher than 75%). This means that, from now on, USDH will always be backed by a minimum 133% of its value in crypto. Hope that’s clear enough.
yellingfore: It is not an app, we simply have a mobile version out. You can dig deeper here https://hubble-markets.gitbook.io/hubble-protocol-official-docs/faq/mobile-app
User 4: I saw on Gitbook Hubble protocol , you have done 3rd audit, but in the last few weeks a lot of defi platforms have been hacked and stolen millions of dollars from investors, so I want to know what steps and plans you will do when Hubble protocol is on hack? Because many of them panic and make investors lose millions of dollars
DMS: Yeah, the last few weeks have been pretty sobering where hacks/exploits are concerned. We’ve been keeping tabs on all of it, and each one is really tough to see. Our approach with regards to this is one that might frustrate some users, but will only benefit everyone in the long term: We believe in security over speed. Don’t get me wrong, our devs chew glass-like maniacs; weekends, holidays, they’re working non-stop, BUT they will never release code that hasn’t been checked, rechecked, and checked again.
When it’s a big update, it will most often get externally audited before release. This makes it seem like updates are pushed somewhat more gradually than some users would prefer, but it means that we want our users to be safe, and their funds as well. Our community has come to appreciate this, which is an absolute win in our eyes.
We’ve been in discussions (this is super alpha, very much in early discussion stages internally) to set up an insurance pool in case an exploit does ever happen. We’re counting on our security-focused approach first and foremost, but we recognize that extra, ”just-in-case”-measures are necessary as well.
yellingfore: You can go deeper on the collateral you can use here https://hubble-markets.gitbook.io/hubble-protocol-official-docs/faq/borrowing
However, we've also got a part of our forum set up specifically to take feedback from folks like yourselves on what collateral you'd like to see next https://forum.hubbleprotocol.io/t/collateral-onboarding-process/67
User 5: 1: "Voting power at first will be conferred holding HBB holders" How long will it last? And change in voting power and meaningly decrease in their power may unsatisfy HBB holders? 2: Will Town Hall events be repeated each month? And what changes will happen in the notification system?
DMS: Not sure I understand what you're asking in terms of HBB and voting power, but HBB will be the governance token once we transition into full governance with on-chain voting. However, that's still a while off. We are in the early stages, and at the moment all discussions about governance and integrations are centered on the forum, which went live last week:
https://forum.hubbleprotocol.io/ Would be awesome if you gave your two cents on some of the topics there! At the moment there are two that we have posted (another coming soon):
1. Recovery Mode Removal discussion: https://forum.hubbleprotocol.io/t/recovery-mode-removal/49/11
2. Collateral Onboarding Process request for feedback: https://forum.hubbleprotocol.io/t/collateral-onboarding-process/67
And one of our solid community members posted the first Proposal Idea a few days ago: https://forum.hubbleprotocol.io/t/hubble-uranus-vaults/75/3
In terms of the Town Hall: Yes, they are happening every month, and it is an event both the team and the community love. We host the town hall to share in-depth updates in terms of development, business development/growth, and governance, and we get great ideas and feedback from the community as well. We always take notes for the members who couldn’t attend. You can check the recap notes from the April Town Hall here: https://twitter.com/HubbleProtocol/status/1514929236267700234?s=20&t=K08CFJyKVJHsA-3EziQRrQ
User 6: I looked over your website page and saw that your project had two separate tokens. $HBB and $USDH are two different types on Hubble. What are the advantages of owning two separate tokens? Do they have distinct functions, and if so, what are they? @DMS @yellingfore
DMS: So to put it briefly: USDH is our stablecoin, which is 133% overcollateralized by crypto-assets, and fully decentralized. To mint USDH, you can deposit any combination of 7 different assets (BTC, ETH, SOL, mSOL, FTT, RAY, SRM). USDH can be used across DeFi, while your collateral grows in value, and you only have to repay the amount you borrowed + a 0.5% minting fee. At the moment there is 0% interest, and no minimum/maximum borrowing period. (We will eventually transition to a very low-interest fee instead of a one-off fee, which will be an extra source of income for USDH stakers).
USDH can also be staked on Hubble to earn the liquidations rewards from the protocol (our liquidations are fully democratized), as well as earning HBB rewards. HBB itself is our native token, and the vast majority of fees from the protocol go to HBB stakers. We are fully focused on fee-sharing, and we believe that for users to stake HBB is a sustainable way to reward users with revenue. When we transition into governance, HBB will also become our governance token.
Cameo: Will Hubble expand the number of assets it accepts for collateral? If so, what kinds of assets will Hubble accept?
DMS: Yes, we will be adding many types of new collateral over time. This will include L1 tokens like LUNA, AVAX, etc. as well as yield-bearing tokens like cTokens from Solend, as well as LP tokens from, for example, Raydium LPs.
If you want to know more, join our Discord. Our whole team and devs are super active and would love to have you!
Keep in Touch