The Solana Network (SOL) is set to see the launch of the mainnet for another decentralized finance (DeFi) protocol, earmarked for Web3 development and backed by cryptocurrency industry bigwigs.
Hubble Protocol, a project that aims to develop a censorship-resistant crypto-backed stablecoin among other DeFi services, has raised $10 million from Three Arrows/DeFiance Capital, Delphi Digital, Digital Currency Group (DCG), Crypto.com Capital, ParaFi, Jump Capital, Decentral Park Capital, CMS, Spartan, DeFi Alliance, and Mechanism Capital.
Hubble plans to expand its DeFi team and products with new funding, starting with its mainnet launch scheduled for January 28, according to the announcement. The first item on Hubble’s roadmap is the launch of its zero-interest lending platform that mints USDH, a censorship-resistant crypto-backed stablecoin that is “positioned to become a building block for other protocols” in the Solana ecosystem.
From a decentralized stablecoin to an innovative lending market and undercollateralized lending, the Hubble team is building “basic DeFi primitives for the Solana ecosystem,” according to DCG Chief Investment Officer Matthew Beck. He added:
“These are critical components of the Web3 financial stack in one of the most prominent networks in the cryptocurrency market.”
Seeing stablecoins as a multi-billion dollar market opportunity, ParaFi Capital Vice President Anjan Vinod emphasized that cryptocurrency users will want access to both centralized and decentralized stablecoins, where Hubble comes into play. “We see Hubble’s low transaction costs and USDH network effects as compelling features to drive the liquidity of the protocol,” he added.
Following the launch of its mainnet, Hubble users can stake the platform’s native token, HBB, to earn the majority of the protocol’s fees by minting USDH. According to the announcement, Hubble aims to develop unsecured lending services in the future and “explore more DeFi innovations that lay the foundation for an open, global financial system.”
Keep reading: