[Asset Onboarding Application] $USDH - Hubble Protocol

[Asset Onboarding Application] $USDH - Hubble Protocol

Author(s): @DeusNero
Tags: asset-onboarding
Asset Name: Hubble Protocol
Asset Code: USDH
Submission Date: 07-21-2022
Ratification Date: n/a
Status: Rejected
Forum URL: https://forum.jetprotocol.io/t/asset-onboarding-application-usdh-hubble-protocol/1031

Application Profile

1. What is your motivation for submitting this application?
Hubble Protocol is aiming to make USDH the defacto decentralized stablecoin on Solana. We believe that for this to happen, we need to enter long-term partnerships with projects building value in the Solana ecosystem. We see Jet Protocol as one of these partners. We see synergies in listing USDH as a collateral for both Jet Protocol and for Hubble Protocol.

2. What is your association to the proposed asset?
Business Development team of Hubble Protocol.

3. What are the key benefits to the Jet Protocol for onboarding the asset?
There is value for Jet Protocol to add different types of stable coins for their users to choose from. We believe that we’re taking the safest route to build a stable coin which will survive the test of time - through over-collateralization. Additionally, our security practices are exceptionally high profile. For more information, please refer to our security practices: Security and Team - Hubble Protocol - Official Documentation.

4. What are the known limitations of the asset?
Limitations partially depend on the functionality of the Solana blockchain. Hubble Protocol is transparent about the risks inherent to our protocol, which include smart-contract risk. More information is available in the risks section of our documentation, which we urge users to read: Risks - Hubble Protocol - Official Documentation

Project Profile

1. Please provide a brief, high-level description of the asset’s native ecosystem (project), including protocol’s type (peer-to-peer/ peer-to-liquidity/ etc.).
Hubble Protocol in its current form, is a borrowing platform which enables to mint USDH against different types of collateral (currently BTC, SOL, ETH, SRM, RAY, FTT, mSOL, stSOL, daoSOL). USDH is an over-collateralized stable coin which means there is always more than $1 worth of assets backing $1 worth of USDH. Currently, users can take out a loan with up to 80% LTV meaning there’s always at least $1.20 backing every $1 at any given time - usually it’s much more.

2. Who are the founding members? What is their current involvement with the project?
The project lead is Marius Ciubotariu. The other 18 team members can be seen at Hubble Protocol - Exploring the DeFi Universe on Solana

3. Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).
USDH is a decentralized stablecoin on Solana, it is overcollateralized and backed by the assets listed on hubbleprotocol.io. There was no IDO for the stablecoin. Hubble itself raised capital from private and public sales in order to launch and grow the protocol, via its HBB token.

4. How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?

5. What was the way of issuing and distributing the tokens? Were there pre-ICO investors?
Investors to Hubble Protocol (not USDH) include: LongHash Ventures, Defi Alliance, Solana Ventures, Spartan Group, Delphi Digital, CMS Holdings, Decentral Park Capital, Jump Capital, Mechanism Capital, Defiance Capital, Three Arrows Capital, Cumberland, Digital Currency Group, Crypto.com, AGE, BlockChange, Q41, Hashkey Capital, Genblock Capital, Parafi Capital, Republic Capital

6. What is the current token distribution (project team vs. investors vs. public)?
USDH is only distributed to those who mint it in the form of collateralized loans
The team has 15%, vested. The rest is distributed between the public via IDO / incentives and professional investors.

7. Are there any fees generated by the protocol? If yes, please provide details and amounts.
There is a 0.5% fee for every loan which is opened. Part of this goes to the treasury and part of it goes to HBB stakers.
Stability fees only kick in as a mechanism to strengthen the peg, it is the same mechanism as DAI / Maker DAO.

8. Is the protocol audited? By what firms? Please provide link(s) to the audit documentation.
The Arcadia Group Security Audit Report (December 2021)
Smart State Smart Contract Audit (December 2021)
Kudelski Security (March 2022)
Kudelski Security (April 2022)
Soteria (Continuous)
Hubble Protocol audits new parts of its software stack continuously as they are being developed. Full audit reports can be seen here Security Audits - Hubble Protocol - Official Documentation

9. Is the protocol open source? If yes, please provide links to the repository.
Our protocol is not open source yet, but there are plans to open source in the future. As of now, our SDK is open source.

10. Other relevant project data or comments:
N/A

Asset Profile

1. Asset name:
USDH

2. Asset type (native/ wrapped):
Native

3. One-sentence description of the asset:
USDH is Hubble Protocol’s Solana-native over-collateralized stable coin

4. What’s the purpose of the asset within its native ecosystem?
USDH can be minted against different types of crypto assets

5. Does the asset have any use outside of its native ecosystem (integrated protocols)?
Orca, Mercurial, Saber, Crema, Solend, Quarry, Raydium with ongoing integrations

6. Please provide all Smart Contract addresses. If the project is open source, detail how the Smart Contracts are implemented.
All smart contract addresses can be seen here: Technical Resources - Hubble Protocol - Official Documentation

Asset Liquidity

1. What exchange(s) support the asset?
Saber, Orca, Raydium, Serum DEX, with most of the liquidity being on Saber

2. Does the asset have liquidity on Serum? What is the liquidity depth (resting orders)?
Minimal Serum liquidity presently, via Raydium

3. Please provide 7-day asset trading history (daily aggregated trading volumes for trading pair of asset with USDC).

4. Which oracles monitor the asset? How many feeds are available?
The price feed can be seen on Switchboard: Switchboard

5. How often does the asset drop significantly in price? Please provide a link to the price history.!

This is the image from Hellomoon.

6. For stablecoins only: Has the asset ever lost the peg? If yes, for what reason?
See answer 5. Coingecko has had API issues with Jupiter which caused erroneous reporting of price. Hello Moon data is accurate. Spike in the beginning was caused by excess demand for the stablecoin. Slight spike recently was caused when the Crema attacker market sold all USDH - but it was quickly arbed back to peg.

7. For algorithmic stablecoins only: Please provide details on the risks associated with the design.
USDH is not algorithmic, it’s a CDP stablecoin.

8. For wrapped assets only: Which bridges are used? Are they custodial or non-custodial? Are they audited?
N/A

9. What amount of asset’s liquidity exists in the integrated protocols (if applicable)?
Total of 8.5m USDH in circulation.

10. List any parties interested in taking part in liquidations for the proposed asset type.
Currently, liquidations are distributed amongst the people who provide USDH into the stability vault. Please refer to the documentation for further information: USDH Vault Liquidations - Hubble Protocol - Official Documentation

Key Mechanics

1. How many active addresses/ users currently hold the asset?
1,746 holders of USDH

2. Please provide a brief overview of the tokenomics.
USDH does not have tokenomics because it is continuously created as it is minted against collateral. It is expected for more USDH to be on the open market as time progresses. Current stats around USDH can be seen under the ‘stats’ tab in our app: https://app.hubbleprotocol.io/

3. Is the asset supply expected to increase or decrease over time? Is there a token burn mechanism? Is the project able to mint more tokens in the future?
As more people borrow against their assets, we expect there to be more USDH in the future.

4. Please explain the staking mechanism (if any).
Staking USDH on the Hubble Protocol currently yields liquidation rewards as well as some HBB rewards

5. Please explain the slashing mechanism (if any).
N/A

6. Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?
There is no vesting schedule for USDH, because it is minted based on loans taken against it and burned as loans are paid off.

7. Are any tokens allocated for specific purposes or issuance schedules (e.g. liquidity mining)?
There is no USDH token allocation for specific purposes or issuance schedules.

Legal Profile

1. Is the project or the asset owned by any incorporated organization?
There is a BVI entity that holds the IP, necessary for project operations.

2. In which jurisdictions was the token issued?
British Virgin Islands

3. Was the token issued as part of regulatory process (e.g. securities offering)?
No.

4. Was the token issued as part of fundraising process?
No.

5. Has the project or the asset obtained any legal opinions on the regulatory standing of the token? If yes, please provide links to the relevant documentation.
No, it is a stablecoin.

6. Has the project or the asset had any legal interactions? If so, describe and provide documentation.
No.

Links

Link to project’s white paper:

Link(s) to active communities related to the project:
Hubble Protocol Discord: http://discord.gg/hubbleprotocol

Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:
Gitbook: https://docs.hubbleprotocol.io/

Link(s) to audits - both procedural and Smart Contracts:
Full audit reports: Security Audits - Hubble Protocol - Official Documentation

Link(s) to legal opinions:

Link(s) to other legal material:

Other relevant links:
Website: https://hubbleprotocol.io/
App: https://app.hubbleprotocol.io/
Twitter: https://twitter.com/HubbleProtocol
Discord: http://discord.gg/hubbleprotocol
Blog: https://blog.hubbleprotocol.io/

List all relevant Solana addresses here:
Programid: HubbLeXBb7qyLHt3x7gvYaRrxQmmgExb7fCJgDqFuB6T
USDH id: USDH1SM1ojwWUga67PGrgFWUHibbjqMvuMaDkRJTgkX
Other potentially relevant addresses: Technical Resources - Hubble Protocol - Official Documentation

Marketing / Campaign Material

If you have additional marketing material, recorded discussions, or collateral onboarding campaign material, link here:
N/A

5 Likes

Happy to answer any questions and looking forward to this partnership!

2 Likes

Thanks @DeusNero ! Do you happen to have any progress towards also having $USDH oracle data available on the Pyth network at this time?

3 Likes

I think the fee structure is very greedy. You wouldn’t want to loose 0.5% of your wealth everytime you open a loan; that too for a stable coin that is not so properly enterenched in Solana ecosystme. This is a BIG barrier. Will hurt both retail and whales alike.

Voting against your protocol onboarding on JET until you make it more “customer friendly.”

This depends on the time horizon for your loan. If you want a very short-term loan then maybe there are better choices to introduce leverage to your portfolio.

We do however, not charge fixed of variable interest rate on your loan and you can repay whenever you want.

I’m not sure how this makes the borrowing “customer unfriendly”. Additionally, this is about integrating $USDH as an asset and I’m not sure how the one-time fee has to do with the quality / security of $USDH as such.

3 Likes

Where do you usually go to get interest free loans for no orgination fee ser?

With current (variable) borrow rates on Solend of 7-8% APR for USDC & USDT, it takes less than a month until it is ‘cheaper’ to use the one-off fee model.

If you want a 5 day loan right now, don’t go and mint USDH in Hubble, use a borrow/lend market. That said, fee models are evolving and Hubble is adding vaults with different conditions to suit a variety of needs.

2 Likes

Where can I read up more on loan duration/fee costs of hubble? My perspective was based on LTF loans.

2 Likes

Feel free to join the Hubble discord, it’s a friendly place :slight_smile:

Also: https://docs.hubbleprotocol.io/

1 Like

Hi @jrmoreau, thank you for your question

A Pyth data feed is a challenge for tokens which are only traded on-chain. However we are in regular contact with Pyth and making progress on this topic. Pyth requires multiple price contributors, and makes heavy use of CEX activity.

We are therefore working on:

  • Ensuring trading and sufficient liquidity in the on-chain venues that are important to Pyth
  • Planning to onboard USDH to CEX when greater scale has been reached

Pyth are also in the process of onboarding new on-chain venues, which will help make further progress on the topic.

Is there any further information you need? We would be very happy to progress with the onboarding of $USDH.

3 Likes

Hey @DeusNero
It’s nice to hear that as much as you, working with the USDH team to meet the requirements - and Pyth, including new feeds for new assets, are working to see these onboarding processes become possible.
I hope to see this moving forward soon !

Hello @DeusNero,

Thank you for submitting this application.

And thank you to the community for a considerate discussion around this proposal.

Due to the lack of a Pyth oracle price feed, which is a hard requirement, the JetDAO Governance Committee will not be progressing the application to token holder vote.

We will be happy to revisit this proposal once this requirement has been met.

Would be awesome and save alot of time all around if you can consider to write at the top of it: ‘please don’t fill in this application form if you don’t have a Pyth feed’ ?

If there is a hard requirement checklist, then that will probably help future projects too who might apply, thanks.

:slight_smile:

3 Likes

Thank you. That is good feedback.

Something similar is in the works.

As an aside we will continue to consider options for the oracle limitation. If any of that changes we will proactively reach out so that your application may pick up from where it left off.

2 Likes

Hello @marky

This is right on point!
We have recently addressed this issue here.

We are constantly working on ways to improve the Asset Onboarding process for Jet.
Thank you for your feedback!

1 Like