Hubble is happy to announce that we have collaborated with Solend to launch the USDH Isolated Pool on Solend.fi.
Another Step in Hubble and Solend’s Partnership
The Isolated USDH Pool has been a while in the making, and we are happy to finally have it live and ready for use.
In the first phase, the pool will consist of BTC, ETH, mSOL and, of course, USDH. The second phase will introduce additional assets, featuring more tokens from across Solana DeFi.
The emissions on the pool will be a total of 60K HBB for the first month, split across USDH borrows, and both lenders and borrowers on the other assets. After the first month, we will evaluate our emissions structure going forward, though it’s safe to assume that we will continue to encourage usage.
The Isolated Pool Expands on USDH use-cases
USDH has had a presence on Solend for a few months, being in both the Stablecoin Pool and the Coin98 Pool. However, this is the first isolated pool for USDH, and adds some versatility to USDH use-cases.
At present, USDH is at the core of Hubble Protocol, and one of Hubble’s primary KPIs is the diversity of options available to users wanting to put their USDH to work.
With the introduction of Solend’s Isolated USDH Pool, users can choose whether to employ long or short-term borrowing strategies, whether to long or short the market, and how much leverage they want to deploy.
A USDH Borrow/Lend Pool Opens Up Diverse Strategies
With Solend’s Isolated USDH Pool, users are now not only able to borrow USDH from Hubble, but also via Solend itself. The key differentiator between the two borrowing actions is that they can serve users with different time horizons.
Time horizons to suit user needs
Should a user want to open a long-term USDH debt position against their assets, borrowing from Hubble may be beneficial, as the BTC, ETH and mSOL borrowing currently incurs only a 0.5% minting fee, and no interest.
However, if looking for a short-term borrowing position, borrowing against your assets in the Isolated USDH Pool may prove more cost efficient, as a debt position is subject to an interest rate, as opposed to a minting fee.
Longing and Shorting the Market
Users can also choose whether to short or long the market via the pool. As in Hubble, by depositing an asset in the Solend Pool and borrowing USDH, a user retains exposure to their asset prices, while their debt accrues only via the interest rate. This is effectively longing the market, and also allows a user to use their borrowed USDH to acquire more assets to redeposit into the pool.
On the other hand, if a user is short on the market, they can deposit USDH and borrow BTC, ETH or mSOL, then swap these assets to USDH, and redeposit USDH into the pool. This is shorting the market. If their asset values decrease, then they can rebuy those assets at a lower price, and repay their debt at a net lower price.
What’s next for Hubble x Solend
The Isolated USDH Pool is an exciting step in furthering Hubble’s relationship with Solend, and the pool itself opens some significant possibilities for further initiatives (though we can’t share too much alpha too soon).
That being said, another Hubble x Solend integration is coming very (very) soon, so keep an eye out!