Just a checkin in real time of what we are doing.
12 Nov 2022, 21:54
Just a checkin in real time of what we are doing.
We are aware that the SRM and soBTC positions pose an existential risk to Hubble and as such we are working on a solution which would have Hubble assuming the bad debt and with none passed to any of our users. Technically, we have enabled redemptions (an old feature that was never enabled due to bad UX), so we can redeem SRM and BTC at the currently trading price on Jupiter. Hubble will provide the USDH to repay and will in turn receive the SRM and BTC. Hubble will try to liquidate the two tokens on the market. This is necessary to avoid liquidations which would otherwise turn into redistributions to all debt holders.
In practice this will mean that Hubble itself will eat the bad debt with none of it passed to any of our current users.
Thanks to everyone for your feedback and pushback 💪