Hubble Protocol is proud to announce our partnership with Marinade Finance! This alliance is our first formally announced partnership with another project on Solana, and we’re excited to begin integrating Marinade’s mSOL token and liquid staking smart contracts.
There are many reasons why Hubble first pursued a partnership with Marinade. In this article, we’d like to explain why Hubble will begin accepting mSOL as collateral on our system, and we’ll also explain why we’ve turned to Marinade to help Hubble “supercharge liquidity” on Solana, the world’s fastest public blockchain.
Some Background About Hubble Protocol and USDH
When Hubble officially launches this January 28th, the platform will begin minting USDH, a censorship-resistant stablecoin backed by a basket of top-tier crypto assets. Along with the launch of USDH, Hubble is introducing a few innovations to collateralized debt positions (CDPs).
First off, Solana’s DeFi community will have the ability to deposit multiple assets as collateral in order to mint USDH. We’re building on the ideas first laid out by projects like MakerDAO and Liquity, and we’re leveraging the power of Rust-coded smart contracts and Solana’s superior UX to make this possible.
Additionally, Hubble’s users can also earn a positive interest on their single token deposits through various yield strategies available in the Solana ecosystem. Since Hubble only takes a one-time fee for minting USDH, zero-interest borrowing combined with the ability to earn a yield on deposits will mean users can break even on their borrowing fees over time.
Why Hubble Chose to Integrate Marinade and mSOL at Launch
Hubble’s philosophy is the opposite of the famous mantra “move fast and break things.” The Hubble team takes DeFi very seriously, and the future of a global financial system like the one Hubble and Marinade are helping build on Solana must rely on secure and sustainable services.
Hubble has to be very careful about what assets are accepted as collateral to mint our stablecoin. USDH is guaranteed to be backed 150% (66.6% LTV) by decentralized crypto assets like SOL, BTC, and ETH–heavy hitters in crypto that aren’t going anywhere any time soon.
The solvency of USDH depends on the solvency of the tokens that back its value. The fact that mSOL will be the first token whitelisted as an addition to the collateral accepted to back USDH highlights Hubble’s belief in Marinade and the job it has done creating the most widely used liquid staking token on our shared network.
Furthermore, Marinade has taken great efforts to secure its smart contracts through three security audits and a continuously running bug bounty. This dedication to security makes Marinade a prime choice for Hubble’s first Solana DeFi integration that will allow users to earn a yield on their deposited collateral.
Hubble and Marinade Work Together to Build the Future of Sustainable DeFi on Solana
The Solana DeFi ecosystem is about to explode with innovative projects and a community that benefits from the incredible throughput and low costs Solana provides. We’re elated to join Marinade through this period of early growth as the network enters a new phase.
According to Sebastian de Castro, Marinade’s Community Lead, Marinade the feeling is mutual. He reported that, “Marinade is happy to support Hubble's introduction to the Solana markets. The creation of forward-thinking DeFi platforms is powering this ecosystem and we, at Marinade, believe that Hubble's introduction of zero-interest loans is an interesting tool to further open possibilities."
De Castro continued, "By integrating mSOL, the main decentralizing factor on Solana, right from launch, Hubble displays its commitment to build a more secure and censorship-resistant Solana alongside Marinade.”
Congratulations to Marinade for reaching the top spot in TVL on Solana at the time of writing this article! This achievement is a testament to the great work the Marinade team has put into increasing the liquidity of Solana’s users while at the same time increasing the decentralization of the network.
Hubble Protocol endeavors to make a similar contribution to the further decentralization of Solana with the launch of USDH. We’re chuffed to be in cahoots with another project like Marinade that’s working towards such an important goal.
Users who deposit mSOL on Hubble will continue to accrue the interest earned by their SOL staked with Solana’s growing number of validator nodes. Likewise, the SOL that arrives on Hubble will have the opportunity to help secure the Solana network and earn Marinade’s currently advertised yield while users borrow USDH.
Hubble is expecting a great year for Solana DeFi in 2022. With allies like Marinade at our side, we’re confident great things are bound to happen as we move forward.