What is Hubble Protocol (HBB)?
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🟢 The simple version
Plain English — no jargon. Start here.
Hubble Protocol is Solana's native CDP (Collateralised Debt Position) stablecoin protocol — similar to MakerDAO on Ethereum — where you deposit Solana assets (SOL, mSOL, stSOL, BTC, ETH) as collateral to mint USDH (a $1-pegged stablecoin) at 0% interest, with HBB as the governance token.
Why Solana needs a native CDP stablecoin
Ethereum has MakerDAO (DAI), Liquity (LUSD), and others offering native CDP stablecoins — stablecoins you mint by depositing crypto collateral rather than buying from a centralised issuer. Solana had fewer native stablecoin options. USDC and USDT are centralised. USDH is Hubble's answer: a Solana-native, decentralised stablecoin backed by Solana ecosystem assets.
The Hubble model is MakerDAO-inspired: deposit SOL, mSOL (Marinade staked SOL), stSOL, or other approved Solana collateral. Borrow USDH at 0% interest (no ongoing interest cost — you pay a one-time borrowing fee). The collateral must maintain a minimum collateral ratio (typically 110-150% depending on asset). If your ratio falls below the minimum due to price decline, your position is liquidated.
USDH and its Solana DeFi role
USDH has been integrated across Solana DeFi — used in lending markets, DEX liquidity pools, and as a base currency for yield strategies. It provides a native Solana stablecoin for users who don't want to rely solely on centralised USDC/USDT.
Is HBB legal in India?
Yes. HBB qualifies as a Virtual Digital Asset (VDA) under Indian law. 30% tax on gains and 1% TDS applies. Always consult a tax professional.
🟡 A bit more detail
For when you want to go a little deeper.
Hubble's multi-collateral model
Hubble accepts multiple Solana assets as collateral simultaneously in a single vault: SOL, mSOL (Marinade), stSOL (Lido Solana), jitoSOL, BTC (wrapped), ETH (wrapped), and other Solana ecosystem assets. This multi-collateral approach means users can leverage their entire Solana portfolio — not just SOL — to mint USDH. An LST holder can mint USDH against their mSOL position, earning staking yield on the collateral while simultaneously having stablecoin liquidity. This creates capital efficiency for LST holders.
Stability pool — Hubble's liquidation mechanism
Hubble uses a "stability pool" for liquidations, similar to Liquity's design. Users who deposit USDH into the stability pool earn liquidation rewards. When a position is liquidated (collateral ratio falls below minimum), the stability pool USDH is used to cover the debt, and the liquidated collateral is distributed proportionally to stability pool depositors — typically at a 10% discount to market value. This creates a profitable incentive for USDH depositors to maintain the stability pool, ensuring liquidations can always be processed.
Hubble inherits Solana-specific risks: network congestion during liquidations (same concern as marginfi and other Solana lending protocols), oracle reliability on Solana, and the relatively smaller Solana DeFi ecosystem compared to Ethereum. USDH's DeFi integrations are growing but thinner than DAI or USDC. Live data: CoinGecko
🟣 The full technical picture
For the technically curious.
Key facts
- Token: HBB (governance)
- Stablecoin: USDH ($1-pegged CDP stablecoin)
- Chain: Solana
- Model: MakerDAO-inspired CDP on Solana
- Collateral: SOL, mSOL, stSOL, jitoSOL, BTC (wrapped), ETH (wrapped)
- Borrowing cost: 0% interest (one-time borrowing fee)
- Liquidation: Stability pool model (similar to Liquity)
- Minimum collateral ratio: 110-150% depending on collateral type
- USDH integrations: Solana DEXes, lending markets
CDP vs stablecoin swap model
There are two main DeFi stablecoin models. CDP (like MakerDAO, Liquity, Hubble): you deposit collateral and mint stablecoin debt — the stablecoin is created by you borrowing against your assets. Stablecoin swap (like Frax, Usual, Ethena): stablecoins are backed by a treasury of assets, you buy/redeem them like securities. CDPs give users leverage: your collateral grows in value but you have a fixed debt. The ratio improving over time creates a natural deleveraging effect. The risk is that if your collateral drops faster than you can react, you get liquidated. Understanding which model a stablecoin uses is fundamental to understanding its risk profile.