May Town Hall Wrap Up

If you were busy unwinding your positions and missed it, check out what happened at this month's Town Hall.

May Town Hall Wrap Up
May Town Hall Wrap Up.

Hubble Protocol schedules a Community Town Hall at the beginning of every month. This month's Town Hall ended up convening in the middle of a stablecoin catastrophe that led to billions of dollars wiped out from the crypto market and decentralized finance (DeFi).

The de-pegging of UST and the market chaos that followed wreaked havoc on Hubble's community, and while the Hubble team shared updates about partnerships, integrations, and updates, much of the conversation was heavily influenced by recent events.

Here's a summary of this month's Town Hall from May 10th. You can find the minutes for the meeting at the bottom of this post.

Liquidations and Performance Issues Were Addressed

During market meltdowns, increased demand for bandwidth often makes a blockchain unusable. For Solana, this was no exception.

Hubble held up pretty well, all things considered. Despite Solana's degraded performance, users were able to deposit collateral and repay their USDH loans.  

The recent addition of an option to change RPC nodes contributed to a better user experience during the mayhem, and the way Hubble was designed allowed for repayments and top-ups to go through.

On the other hand, a lot of users were frustrated by the inability to withdraw their deposits, a fault that could be traced to the network and oracles having a difficult time coordinating.

Hubble is addressing the oracle issue by making price validations less strict, but deploying these updates will need the market to settle down and for Solana to work properly. So, in the meantime, everyone has to hang tight and keep trying to push their transactions through.

Solana is working on ironing out the problems it currently faces from bot traffic flooding the network. The QUIC update is coming soon, as well as a fee market (somehow), and these additions should lead to a better user experience and network performance.

Hubble Has Been Lining Up Partnerships

Next, some good news was in order. Mark, from the business development side of Hubble, gave the community some updates about recent partnerships Hubble has been forming.

Hubble has integrated Slope Wallet, which has some interesting features for staking SOL in-app. New partnerships in the DeFi ecosystem included Nova Finance, Port Finance, and Lido Finance, one of the biggest names in crypto staking.

As for what we will do with these projects, Hubble and Nova will launch pools with Nova's NOVA token paired with USDH. This makes Nova the first project to pair its token with Hubble's stablecoin on a DEX!

Port Finance, one of the first and key borrow/lend platforms on Solana, has launched a new market called the Hubble Innovation Zone. USDH and other tokens important to the Hubble ecosystem can be borrowed and lent through this isolated market on Port, and users can earn PORT and HBB for participating.

The liquid staking giant Lido Finance will also launch token pairs with USDH. Users will be able to find stSOL-USDH pairs on Raydium and Orca in the coming weeks, and stSOL will be onboarded as collateral to mint USDH.

Updates from the Developers

The Peg Stability Module (PSM) is ready to go! The PSM will help users arbitrage USDH against another stablecoin in order to maintain and tighten USDH's peg, and it's huge news.

Hubble originally planned to take on UST as the first stablecoin used in the PSM, and we "dodged a bullet" with the timing of UST's implosion. Now, unfortunately, there are virtually no decentralized stablecoins to choose from for the PSM.

It's evident that USDC is the best option for the PSM at this juncture, but it admittedly goes against our ethos of decentralization and censorship resistance. However, exposure to USDC will remain limited, the same as it would have been for UST as the PSM would have started off with that token.

Next, new collateral types will be added to Hubble this month! Among the tokens on the potential whitelist are Solend cTokens, Saber LPs, and more staked assets.

Hubble's website, not the dApp, will see some updates, too, including an updated roadmap and a Team Page. It's time Hubble got doxxed!

Talking about UST and USDH's Future

The conversation steered back to the topic of the day, which was UST. Marius pointed out that the community should refrain from bashing Terra, since we're all trying our best in DeFi, working in a field with a lot of risks as we push the envelope.

He also addressed the fact that a stablecoins main priority is maintaining a stable price, something that USDH managed to do throughout the turmoil.

It was noted that Terra's strategy was to provide "off the charts rewards," which in the end was not sustainable. Hubble is right now working on the best way to provide sustainable rewards.

The introduction of a stability fee could replace HBB rewards, and we want to begin limiting how much HBB is emitted as an incentive to participate in the protocol. The stability fees would go to USDH stakers.  

As an interesting side note: the Stability Pool had people earning 20% on their USDH deposits within 48 hours as liquidations went through at unprecedented rates. We're not fond of users getting liquidated, but the users who help the protocol remain solvent by supporting the Stability Pool had a field day.

Look out for market-based liquidations being phased into the protocol in the next six months.

And That's a Wrap, Goodnight and Be Well

Past Town Halls have gone way over the hour mark with users asking questions and sharing their ideas. This time, the situation was quite different.

Surprisingly, the community turnout was only a fraction below what it had been in the last months. Not surprisingly, though, people weren't in the mood to have a chat, which was entirely understandable.

It was a hard day for everyone.

Town Hall Minutes

Town Hall minutes part 1.
Part 2.
Part 3. 
Part 4.

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