Note: Hubble has made several changes to the platform and USDH since this article was first published. This article is not financial advice. Hubble Protocol does not endorse any tokens or platforms mentioned in this article.
Hubble Protocol is proud to announce its partnership with Marinade Finance! This alliance is the first formally announced partnership with another project on Solana, and Hubble is excited to begin integrating Marinade’s mSOL token and liquid staking smart contracts.
There are many reasons why Hubble formed a partnership with Marinade. This article will explain why Hubble will begin accepting mSOL as collateral, and it will also explain how Marinade can 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 allowing users to mint USDH, a censorship-resistant stablecoin backed by a basket of 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. Hubble is building on the ideas first laid out by projects like MakerDAO and Liquity, and the protocol is leveraging the power of Rust-coded smart contracts and Solana’s superior UX to make this possible.
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 community takes DeFi very seriously, and the future of DeFi must rely on security and sustainability.
The solvency of USDH depends on the solvency of the tokens that are used to borrow it. The fact that mSOL will be the first token whitelisted as an addition to the collateral accepted to back USDH highlights Hubble’s respect for Marinade and the job it has done creating the most widely used liquid staking token on Solana.
Furthermore, Marinade has made 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 abundant with innovative projects and a community that enjoys the incredible throughput and low costs Solana provides. Hubble is elated to join Marinade through this period of early growth as the network enters a new phase.
According to Marinade, the feeling is mutual. It 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 Marinade believes that Hubble's introduction of zero-interest loans is an interesting tool to further open possibilities."
The liquid staking protocol 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.”
Hubble Protocol endeavors to make a similar contribution to the further decentralization of Solana with the launch of USDH. Hubble proud to partner with another project like Marinade that’s working towards such an important goal.