Hubble Protocol SRM Grant Proposal

Summary

At Hubble we want Serum to become a cornerstone of USDH liquidity as we scale and more USDH enters the Solana DeFi ecosystem. Hubble will additionally be launching some new strategy vault products which execute trades via Serum.

Scope of the grant proposal

600k SRM to be used over a 16 week period;

-to incentivize flagship USDH liquidity & trading routes with SRM, on Serum-based markets via Atrix

-for Hubble to incentivize our new ‘powered by Serum’ yield strategies with SRM, which will use Serum to execute trades

Overview

Hubble Protocol (https://hubbleprotocol.io/), is a borrowing platform and issuer of the USDH stablecoin, striving to become Solana’s leading native stable asset.

Hubble went live on mainnet in January 2022. The protocol’s core product is an overcollateralized stablecoin, USDH, which can be minted by depositing assets in Hubble. Minting USDH against a collateral asset allows users to retain exposure to digital assets, while obtaining liquidity via USDH loans.

At present, Hubble accepts any combination of BTC, ETH, SOL, mSOL, stSOL, SRM, RAY and FTT as collateral for USDH loans. At the time of writing, Hubble’s TVL is $32million, with 9 million USDH in circulation (https://app.hubbleprotocol.io/stats). USDH adoption across Solana DeFi has been growing, for example across DEXes such as Orca, Crema, Saber and Raydium, where USDH is the only Solana-native stablecoin quote token. There’s additionally several use cases for USDH in borrow / lend markets such as Solend & Port Finance.

Hubble x Serum

At Hubble we want to support the sustainable growth and continued adoption of Solana DeFi, including a Solana native stablecoin at the core of it.

Project Serum has been a significant USP for Solana, and is a fundamental piece of onchain liquidity. This is why we chose SRM as a Day 1 collateral asset on Hubble, which has already provided significant value-add to SRM holders via collateralized borrowing of USDH.

USDH has limited presence on Serum presently, and we would like to change that by introducing some key USDH trading routes to the Serum orderbook.

Furthermore, we will be launching several new strategy vault products, and we would like to execute trades required for these via Serum markets.

A simple example of one product would be an automated strategy whereby a user deposits SOL on Hubble, then with a ‘1 click’ concept, Hubble mints USDH, immediately sells than on Serum for more SOL, which is deposited back into Hubble. To unwind the position, once again Serum would be used to trade SOL into USDH to repay the USDH loan in Hubble.

Grant Proposal

The grant proposal scope has two main asks. Firstly would be to incentivize Atrix vaults with SRM, distributed to liquidity providers on a proportional basis. This liquidity would be the foundation for USDH on Serum, and required in order to support additional trading use cases.

The initial routes in focus, and SRM allocations would be;

SOL-USDH (100k SRM)

USDC-USDH (200k SRM)

USDT-USDH (200k SRM)

Secondly, we would like to deploy some 100k SRM to incentivize participation in Hubble’s ‘powered by Serum’ strategy vaults.

The time period for the campaign would be 16 weeks.

Expected outcome

At Hubble we believe that this grant will contribute to establishing significant USDH liquidity on Serum, which will in turn result in an increase in trading volume as Hubble scales and more USDH use cases develop. Furthermore, our ‘enabled by Serum’ strategy vaults will both drive an increase in trading volumes to Serum, as well as raise awareness of Serum as a reliable trading partner in Solana DeFi.

We look forward to engaging with the Serum community to discuss this proposal