Hubble Protocol, the Solana-based project aiming 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.
It has been reported that Hubble plans to expand its team and DeFi products with fresh funds, starting with its scheduled mainnet launch on January 28.
However, the first item on Hubble’s roadmap is the launch of its zero-interest borrowing platform that mints USDH, a censorship-resistant crypto-backed stablecoin that’s “positioned to become a building block for other protocols” on the Solana ecosystem.
The report said that from a decentralized stablecoin to an innovative borrowing marketplace to undercollateralized lending, the Hubble team is building “core DeFi primitives for the Solana ecosystem.
Matthew Beck, the Director of Investments at DCG, said:
“These are critical components of the Web3 financial stack on one of the most prominent networks in the crypto market.”
Likewise, seeing stablecoins as a multi-trillion dollar market opportunity, ParaFi Capital vice president Anjan Vinod stressed that crypto 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 liquidity to the protocol.”
After its mainnet launch, Hubble users can stake the platform’s native token, HBB, to earn the majority of the protocol’s fees from minting USDH.
Thus, Hubble aims to develop undercollateralized lending services in the future and “explore further DeFi innovations laying the foundations for a global and open financial system.”