Hubble Protocol has added Lido Finance's stSOL to the basket of tokens users can deposit to borrow USDH. To celebrate, the protocols will be providing rewards to some of Hubble's users.
If users borrow USDH using stSOL as collateral over the next two months, they can earn a share of 10,000 LDO.
Hubble and Lido's stSOL integration will allow users to borrow USDH against their liquid staking tokens to further expand their liquidity, earn yield from staking, and additionally have the opportunity to earn LDO rewards.
How to Earn Rewards Borrowing USDH on Hubble with stSOL
Users who meet the criteria for borrowing USDH against Lido assets on Hubble will earn a share of 150 LDO rewards a day. The rewards will be distributed proportionately to the amount of USDH borrowed during the rewards eligibility period.
There will be 150 LDO a day distributed for a two-month period. In total, users will be sharing a rewards pool of 10,000 LDO tokens. In order to participate in the LDO boost to receive rewards, users must:
- Maintain a loan with at least 40% LTV.
- Ensure that the loan's collateral is at least 40% stSOL.
LDO rewards will accrue on Hubble Protocol and can be claimed in-app at the end of each month.
Hubble and Lido Partner to Improve the DeFi User Experience on Solana
Users on Hubble and Lido are usually looking for a similar kind of optimization in how they participate in decentralized finance (DeFi). Both protocols let users access the liquidity of their SOL tokens, and Hubble and Lido synergize the opportunities to yield while holding SOL.
On Hubble, users can borrow USDH against SOL deposits to hold their SOL long-term and also have stablecoins available for DeFi yield opportunities.
On Lido, users deposit their SOL in return for stSOL, which earns a consistent yield from Solana's Proof of Stake (PoS) staking rewards while at the same time it can be used in DeFi.
Putting Hubble and Lido together: borrowing USDH with stSOL is a way to increase exposure to the Solana DeFi ecosystem and earn APY. While stSOL accrues Solana's staking APY, it can be deposited on Hubble and used as collateral to do many other things in DeFi.
Earn Rewards for Borrowing USDH with Lido's stSOL
The stSOL token accrues yield from staking, and this additional yield reflected in stSOL means that each token trades at a premium when compared with SOL.
For users who deposit their stSOL on Hubble to borrow USDH, the opportunity to earn yield will be augmented by LDO rewards, which have been provided by Lido.
For two months, when users borrow USDH to access the liquidity of their stSOL, they can earn LDO for participating in DeFi with Lido's liquid staking tokens as they tokens also earn yield from staking—a double dip for DeFi composability.
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