Solana-based stablecoin borrowing platform Hubble Protocol raised $5 million in a strategic round led by Multicoin Capital, the company announced on Thursday.
Previous investors DeFiance Capital, Delphi Digital, Digital Currency Group, Crypto.com Capital, ParaFi, Jump Capital, Decentral Park Capital, CMS, Spartan Group, DeFi Alliance and Mechanism Capital also participated in the round. The company declined to share a valuation.
This latest round brings the protocol’s total financing to date to $15 million. It raised its first round when it launched in January this year.
The British Virgin Islands-based company said it will use the funds to advance its roadmap. This includes improvements to the current platform and advancing the use of its stablecoin, USDH, through the launch of new DeFi services and products.
Among its offerings is Kamino Finance, a concentrated liquidity optimizer. It will allow liquidity providers to use LP tokens as collateral to borrow USDH, which can then be used to transact or earn further yield across the Solana DeFi ecosystem. USDH is currently supported by Orca, Raydium, Saber, and Mercurial.
Spencer Applebaum, principal at Multicoin Capital, said in a statement that the protocol was taking concepts pioneered by Ethereum’s MakerDAO and expanding them on Solana.
“There are only a few ways to safely build a decentralized stablecoin, and Hubble’s over-collateralization approach has been tested through all market conditions,” he said.
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