Try Quests to earn SOLOpen Analytics Bounty: Solana (December 9)
What Is FTX Exchange?
FTX Exchange was a leading centralized cryptocurrency exchange specializing in derivatives and leveraged products. Founded in 2018 by MIT graduate and former Jane Street Capital international exchange-traded funds trader Sam Bankman-Fried, FTX offered a range of trading products, including derivatives, options, volatility products, and leveraged tokens. It also provided spot markets in more than 300 cryptocurrency trading pairs such as BTC/USDT, ETH/USDT, XRP/USDT, and its native token FTT/USDT.12
In early November 2022, the exchange and the companies in its orbit began a steep fall from grace.
Bahamas-based FTX and its FTX US affiliate had overlapping management teams but separate capital structures. U.S. residents could only trade through FTX US.
FTX filed for Chapter 11 bankruptcy protection on November 11, 2022 and Bankman-Fried resigned. The exchange's collapse was the result of "a complete failure of corporate control,"3 according to John J. Ray III, the new chief executive of the cryptocurrency exchange. And Ray has some experience with massive business failures: he helped manage energy trader Enron following its collapse in an accounting scandal in 2001.
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What is Hubble?
Hubble is a decentralized finance (DeFi) protocol built on Solana. Hubble's core product is USDH, a decentralized stablecoin that can be borrowed against your crypto assets. Users can deposit multiple crypto assets like SOL, BTC, ETH, and others, to borrow USDH. In turn, USDH can be used to serve various purposes across Solana DeFi. Hubble will offer multiple USDH borrowing vaults, with various asset combinations and vault-specific parameters such as Stability Fees and Deposit Caps. USDH borrows are guaranteed by a combination of Hubble's USDH Vault (Stability Vault), and bots that facilitate market-based liquidations. The USDH that users deposit into the USDH Vault is used to pay off bad loans, while depositors earn a net positive ~10% difference in liquidated assets. In addition, users who deposit USDH in the USDH Vault earn HBB, Hubble's native token. In the coming phases of development, the protocol will launch various products and services to bring further utility to the platform, and USDH itself. The HBB Token
Hubble delivers value to its community via HBB staking, allowing users to earn rewards generated by the protocol. In future, HBB will be used as Hubble's governance token, which will empower users to direct protocol decision-making. Building on top of the borrowing protocol, Hubble will offer unique yield-generating infrastructure, as well as staking mechanisms geared towards adding further value to HBB stakers, while bolstering the value of HBB itself.
Borrowing made easy, cheap, and attractive SOL, BTC, ETH, etc. holders, motivated to keep the upside to their portfolio, can deposit their assets and borrow USDH to use it across various protocols on Solana. While a user's loan is active, their assets retain full exposure to the market.
Upon paying back their debt, users will regain access to their collateral. If the value of their collateral increased while it was deposited, they receive that entire value back upon repaying their debt. Loans have no fixed maturity, so debt owners can pay back their debt whenever they wish. Earning yield on collateral In addition to keeping the upside on collateral, users can earn yield on their deposits. At present, this is facilitated by Hubble's onboarding of yield-bearing collateral. Hubble currently accepts mSOL, stSOL and daoSOL as collateral, with Solend cTokens, stETH, scnSOL, and numerous other yield-bearing assets being onboarded imminently. In future, users will be able to opt-in to have their collateral allocated to partner protocols to earn yield. Users will have the freedom to choose from multiple yield-earning strategies. Governance for the benefit of the community
Decentralized governance, in order to be meaningful, needs to allow the most active participants in the community to have an effective voice. To incentivize participation we are combining features of existing models that we find work best, especially:
- General directive proposals where development work from the core team is dictated by the community, once a quarter.
- Group proposals where the community can unite to make a proposal even if individual voters wouldn’t have enough voting tokens.
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Methodology
In this dashboard, using Solana database tables that are available on Flipside, we analysis the Hubble protocol and the impact of FTX collapse on it from various aspects.
Technical
Solana Tables:
solana.core.fact_transactions and solana.core.fact_events
solana.core.fact_swaps and solana.core.dim_labels
Hubble ProgramID: HubbLeXBb7qyLHt3x7gvYaRrxQmmgExb7fCJgDqFuB6T
Kamino ProgramID: 6LtLpnUFNByNXLyCoK9wA2MykKAmQNZKBdY8s47dehDc
Metrics:
Users and Transactions Status on Hubble Protocol
Total Number of Users on Hubble Protocol
Total Number of Transactions on Hubble Protocol
Daily Users and New Users on Hubble Protocol
Daily Number of New Users and Cumulative Number of New Users
Daily Number of Active Users on Hubble Protocol
Daily Number of Transactions on Hubble Protocol
Total Number of Transactions and Cumulative Number of Transactions
Mint and Burn On Hubble Protocol
Mint Rate On Hubble Protocol
Burn Rate On Hubble Protocol
Daily Mint and Burn Rate On Hubble Protocol
Daily Number of Mint and Burn on Hubble Protocol
Total Number of Mint and Burn
Cumulative Mint and Burn on Hubble Protocol
Monthly Mint and Burn on Hubble Protocol
USDH [Hubble Stablecoin]
Daily Number of Transactions and Users - USDH Flows On Solana
Daily Volume of USDH and Users - USDH Flows On Solana
Daily Number of Transactions and Users - USDH Flows On Hubble Protocol
Daily Volume of USDH and Users - USDH Flows On Hubble Protocol
Daily Number of USDH Swap Transactions by Protocols
Daily Number of USDH Swappers by Protocols
Swap From and To Hubble Protocol
Top 5 Tokens "Swap From Hubble" by Number of Swap
Top 5 Tokens "Swap From Hubble" by Volume of Swap
Top 5 Tokens "Swap To Hubble" by Number of Swap
Top 5 Tokens "Swap To Hubble" by Volume of Swap
Kamino Finance Status
Daily Kamino Number of Transactions
Daily Kamino Number of Transactions and Cumulative Number of Transactions
Daily Number of Kamino Users and Transactions
Total Number of Active Users On Hubble and Kamino
Daily Number of Active Users On Hubble and Kamino
Hubble Black Swan [FTX Collapse]
Daily Number of Active Users on Hubble Protocol
Daily Number of Transactions on Hubble Protocol
Hubble Liquidations - Last 2 Months
USDH Stability Pool Withdraw Status
Hubble Liquidations - Scatter View
Findings
In this section, we have graphs that show the number of users and new users and transactions on Hubble on a daily basis.
The total number of users on Hubble is 4800. This number of users have made 2.29million transactions on Hubble.
In the "Daily Users and New Users on Hubble Protocol“ chart, we see the number of users and new users on Hubble on a daily basis.
The highest number of active users and new users are on February 1, 2022. As we see in the diagram, 749users have used Hubble on February 1 and 512users have been created on Hubble on the same date.
As we can see in the chart, from February to April, the activity status of users and new users is normal and good. Since May, we have seen a downward trend in the activity of users on Hubble. The number of users is decreasing compared to February to May. The reason for the decrease could be the bear market that intensified in May due to the terra crisis and reached its peak in June due to the announcement of an increase in the inflation rate by the Federal Reserve.
On November 22, 1.62m transactions were processed by 32users on Hubble. The reason for the high number of transactions is the FTX crisis and the fear of users of the bankruptcy of the DeFi platforms under the influence of the FTX collapse. In the last part of this dashboard, we will take a closer look at the impact of the FTX crisis on the Hubble platform.
Findings
In the chart on the left, we see the number of transactions on Hubble on a daily basis. As we can see in the chart, the highest number of transactions was on February 1, 2022. On February 1, 2022, 6407 transactions have been performed on Hubble. From February to early March 2022, the number of transactions is normal, but from March 6, the number of transactions is decreasing. On May 11, the number of transactions has reached 3031 transactions. which could be due to the fear of the Terra crisis, which caused the withdrawal of capital from DeFi programs. In the chart, we can see the impact of the bear market, which has reduced the number of transactions and user activity from May to today.
Findings
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In the diagrams of this section, we show the burns with negative numbers.
In this section, we see the status of Mint and Burn on Hubble on a daily, monthly and general basis.
In the “Daily Number of Mint and Burn on Hubble Protocol“ chart, we see the number of Mints and Burns on Hubble on a daily basis. 874 mints were processed on the Hubble on February 1, which is the highest number of mints processed on the Hubble.
The highest number of burns is on May 11 and is -122. (Note that here we show the number of burns with negative numbers.)
On the chart, we can see that from April to August, the number of mints is decreasing. But it has been increasing since August 29.
We can see in the "Total Number of Mint and Burn" chart, the total number of mints are 13.4 thousand and the total number of burns are -424.
In the "Monthly Mint and Burn on Hubble Protocol" chart, we can see mints and burns in Hubble on a monthly basis.
The highest number of mints are 5034in February 2022.
The highest number of burns is in May 2022 and are -247.
On November 9, 143 burn transactions were processed on Hubble. The reason for the high number of burn transactions is the FTX crisis and the fear of users of the bankruptcy of the DeFi platforms under the influence of the FTX collapse. In the last part of this dashboard, we will take a closer look at the impact of the FTX crisis on the Hubble platform.
Findings
In the charts of this section, we check the USDH situation on Solana. In the "Daily Number of Transactions and Users - USDH Flows On Solana" chart, we see the number of transactions and users for USDH on a daily basis. We see The highest number of transactions for the USDH token is on September 13, 2022. As of September 13, 2022, 201 users have processed 353 transactions for the USDH token. As we can see in the chart, from February 14 to August 3, 2022, USDH token transactions are decreasing, but since August 4, the number of USDH token transactions has increased.
findings
In the "Daily Number of Transactions and Users - USDH Flows On Hubble Protocol“ chart, we see the number of USDH token users and transactions on Hubble on a daily basis. The highest number of transactions of the USDH token on Hubble was on February 1 with 349 transactions. From March to the end of August 2022, we will see a decreasing trend in the number of USDH token transactions on Hubble. From August 28, 2022, we will again see the increasing trend of USDH transactions. On September 22, 2022, 211 USDH token transactions were processed for 60 users on Hubble.
In the “Daily Volume of USDH and Users - USDH Flows On Hubble Protocol“ diagram, we can see the volume of USDH token transactions on Hubble. The largest transaction volume of USDH token on Hubble was on September 22, 2022, with the amount of 794.6 thousand USDH tokens for 60 users.
In the “Daily Number of USDH Swap Transactions by Protocols" and “Daily Number of USDH Swappers by Protocols“ charts, we see the number of USDH swap token transactions and the number of swappers based on various protocols on a daily basis. The highest number of USDH swap transactions was on June 21, 2022, with the number of 9487 transactions. Out of 9487 USDH swap transactions, 9467 transactions were processed by the Jupiter protocol. 1 transaction was processed by the Saber protocol, 3 swap transactions were processed by the orca protocol, and 16 swap transactions were processed by the radium protocol.
Findings
In the charts of this section, we see the number and volume of swap transactions of the top 5 tokens in Hubble. In the "Top 5 Tokens "Swap From Hubble" by Number of Swap" and "Top 5 Tokens "Swap From Hubble" by Volume of Swap" charts, we can see the number and volume of swap transactions of the top 5 tokens from Hubble. The largest number and volume of swap transactions from Hubble are related to the USDC token. 72,289 swap transactions with a volume of over 59 million have been processed for the USDC token from Hubble. 144,880 swap transactions with a volume of more than 4.5 million have been processed for the wSOL token from Hubble.
In the "Top 5 Tokens "Swap To Hubble" by Number of Swap" and "Top 5 Tokens "Swap To Hubble" by Volume of Swap" charts, we can see the number and volume of swap transactions of the top 5 tokens to Hubble. The largest number and volume of swap transactions to Hubble are related to the USDC token. 94,835 swap transactions with a volume of over 62 million have been processed for the USDC token to Hubble. 143,563 swap transactions with a volume of more than 4.8 million have been processed for the wSOL token to Hubble.
Kamino Finance Status
Kamino Finance, an automated market-making solution developed on DEX and powered by concentrated liquidity, optimizes liquidity by leveraging speed and cost on the Solana network and rebalances positions and auto-compounds fees, including awards on behalf of its users.
This automated product is guided by quantitative modeling and analysis and seeks to offer a market-making tool that needs very little or no expertise for user participation. LPs can ‘set it and forget it’ to optimize their earnings in fees and minimize impermanent losses while providing liquidity through Kamino Finance. All in all, the closed-source project offers an easy-to-use, intuitive, and sleek user interface that can be used by anyone in the DeFi space.
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Findings
In this section, we check the status of the number of transactions and users of the Kamino protocol.
In the "Daily Kamino Number of Transactions“ chart, we see the number of daily transactions on Kamino. The highest number of Kamino transactions is on September 22 and are 213.5 thousand. We can see the number of transactions cumulatively in the “Daily Kamino Number of Transactions and Cumulative Number of Transactions“ chart. From July to October 2022, the number of transactions has reached 1.56 million transactions.
In the pie chart, we can see the number of active users on Hubble and Kamino.
96% of users are active on Hubble and only 4% of users are active on Kamino.
Conclusion
In this dashboard, we reviewed the Hubble protocol from different aspects, and we saw that the number of transactions, active users, and new users was normal from February to early March. From April until now, we have seen a decrease in the number of new users and transactions due to the bear market and FTX collapse.
We saw the massive drop in deposited USDH that occurred on the 9th is attributed to the SRM Whale’s withdrawal from the Stability Vault. The withdrawn USDH was used to repay most of the loan taken on SRM tokens. Liquidations began ramping up on the 8th, with 69 recorded. On the 9th, liquidations peaked with 178 counted. Despite issues with network performance, the protocol managed to successfully liquidate loans that had passed their liquidation threshold.
We also found out that 5.3 million dollars were withdrawn from the USDH pool on November 9 and 3.2 million dollars on November 13. On November 19, 1.3 million dollars were withdrawn again. In the charts, we can see that before the collapse of FTX, the average withdrawals were less than 150 thousand dollars.
But since November 7, we see that millions of dollars have been withdrawn from the Hubble pool.
Hubble announced on its official Twitter channel that it was able to manage the crisis and assured users that it will protect their assets as during the Terra crisis. Considering that millions of dollars were withdrawn from Hubble and Hubble tried to temporarily close the withdrawals, but after controlling the crisis, it reopened the withdrawal from the Hubble pool and did not leave any restrictions. So it can be said that Hubble was able to overcome the FTX crisis. Some of the items we reviewed in this dashboard:
> Total Number of Users on Hubble Protocol: 4790 > > Total Number of Transactions on Hubble Protocol: 2.285M > > On May 11, the number of transactions has reached 3031 transactions. > > Mint Rate On Hubble Protocol: %1.101 > > Burn Rate On Hubble Protocol: %0.0253 > > 874 mints were processed on the Hubble on February 1, which is the highest number of mints processed on the Hubble. > > The highest number of burns is on May 11 and is -122. (Note that here we show the number of burns with negative numbers.) > > The total number of mints are 13.4 thousand and the total number of burns are -424. > > The highest number of mints are 5029 in February 2022. > > The highest number of burns is in May 2022 and are -247. > > The highest number of transactions for the USDH token is on September 13, 2022. As of September 13, 2022, 201 users have processed 353 transactions for the USDH token. > > The highest number of transactions of the USDH token on Hubble was on February 1 with 349 transactions. > > The largest number and volume of swap transactions from Hubble are related to the USDC token. 72,289 swap transactions with a volume of over 59 million have been processed for the USDC token from Hubble. 144,880 swap transactions with a volume of more than 4.5 million have been processed for the wSOL token from Hubble. > > The largest number and volume of swap transactions to Hubble are related to the USDC token. 94,835 swap transactions with a volume of over 62 million have been processed for the USDC token to Hubble. 143,563 swap transactions with a volume of more than 4.8 million have been processed for the wSOL token to Hubble. > > The highest number of Kamino transactions is on September 22 and are 213.5 thousand. > > 96.1% of users are active on Hubble and only 3.9% of users are active on Kamino.