Hubble Protocol, a decentralized finance (DeFi) application on the Solana network, has raised $10 million. Hubble will commence the first phase of its development on January 28, a zero-interest lending platform that will produce USDH, a censorship-resistant crypto-backed stablecoin. Bank of America: Solana might become the "Visa of the digital asset ecosystem" since it focuses on scalability, cheap transaction costs, and simplicity of use. Solana has settled more than 50 billion transactions and has more than $11 billion in total value locked.
Solana Projects Attract Investments as the Ecosystem Grows
Three Arrows / DeFiance Capital, Delphi Digital
, Digital Currency Group
, Crypto.com Capital
, ParaFi, Jump Capital, Decentral Park Capital
, CMS, Spartan, DeFi Alliance, and Mechanism Capital were among the investors in Hubble’s funding rounds.
Hubble will use this funding to grow its workforce and DeFi products throughout 2022. Hubble will commence the first phase of its development on January 28, a zero-interest lending platform that will produce USDH, a censorship-resistant crypto-backed stablecoin. USDH is primed to become a “building block” for additional protocols on Solana, as stated in Decentral Park Capital’s investment thesis. The protocol aims to improve the future of DeFi and Web3 continually.
Hubble’s native token, HBB, allows users to earn the bulk of the protocol’s fees by minting USDH. The revenue streams contributing to this fee-share may expand in the future. HBB will be available on three launchpads at the end of January: SolRazr, Solanium, and DAO Maker.
As the ecosystem for Solana is still at its nascent stage, building the initial infrastructure such as a decentralized stablecoin to a novel borrowing marketplace and undercollateralized lending is the key to building DeFi primitives for the Solana ecosystem. These are essential components of the Web3 financial stack on the most well-known cryptocurrency infrastructure.
Solana Eats the Market Share of Ethereum
In a research note, Bank of America
informed clients that the Solana blockchain might become the “Visa of the digital asset ecosystem” since it focuses on scalability, cheap transaction costs, and simplicity of use. Due to the success of Solana as a high throughput blockchain, projects such as Hubble Protocol are building DeFi infrastructure on the blockchain.
Since its premiere in 2020, Solana has seen rapid acceptance and has settled more than 50 billion transactions and has more than $11 billion in total value locked, and has been used to mint more than 5.7 million non-fungible tokens (NFTs). For comparison, Visa, the payment processing giant, handled 164.7 billion transactions in the year ended September 30. According to the bank, Solana is designed for consumer use cases like micropayments and gaming.
While Solana promotes scalability, a less decentralized and secure blockchain comes with trade-offs, as seen by multiple network performance concerns since its launch. Ethereum values decentralization and security above scalability, resulting in periods of network congestion and transaction fees that are often more than the value of the transaction being transmitted.
According to Bank of America, Solana and other blockchains might eat into Ethereum’s market share over time and will begin to differentiate themselves via user acceptance and developer engagement.
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