Epoch Mechanics

Hubble Protocol operates through a dynamic epoch system, with each 6-hour period classified based on market conditions. This responsive structure allows the protocol to adapt to changing circumstances, creating different incentive and emission patterns as needed.

Standard Epoch Types

Each epoch's classification is determined by measuring the Time-Weighted Average Price (TWAP) of $EX relative to $stS. This measurement creates an objective mechanism for determining appropriate protocol responses to market conditions.

Neutral Epoch

When $EX trades between 0.99 and 1.01 $stS, the protocol enters a Neutral Epoch. During this balanced state, emissions are distributed broadly across the ecosystem: $EX LPs receive 3 $xHUBBLE, $HUBBLE LPs receive 1 $xHUBBLE, the Dark Energy Module receives 2 $xHUBBLE, and Mission Control receives 6 $xHUBBLE plus $EX. Additionally, the $EX supply increases by a minimal 0.01% during these epochs.

Dark Epoch

When $EX trades below 0.99 $stS, indicating potential downward pressure on the peg, the protocol enters a Dark Epoch. During these challenging conditions, emissions are concentrated entirely on the Dark Energy Module, which receives 4 $xHUBBLE. This focused approach creates targeted incentives during market downturns while limiting overall emissions.

Light Epoch

Conversely, when $EX trades above 1.01 $stS, demonstrating strong demand, the protocol enters a Light Epoch. During these favorable conditions, emissions are distributed more broadly: $EX LPs receive 3 $xHUBBLE, $HUBBLE LPs receive 2 $xHUBBLE, the Dark Energy Module receives 1 $xHUBBLE, and Mission Control receives 6 $xHUBBLE plus $EX. Additionally, the $EX supply increases by a more substantial 0.1% during these epochs, helping to meet market demand.

Special Epoch Mechanics

Beyond the standard epoch types, Hubble Protocol incorporates special mechanics that activate during extreme conditions. These create additional tools for maintaining stability when conventional approaches may be insufficient.

White Hole Epoch

To monitor protocol health, Hubble tracks a global metric called Death Spiral Risk (DSR), calculated as the supply of $stS in redemption pools divided by the circulating supply of $EX. When this ratio reaches a critical level (initially set at 0.9), the next epoch becomes a White Hole Epoch if the protocol is trading above peg.

During White Hole Epochs, the protocol focuses on increasing the DSR. $EX emissions through Mission Control are paused, and users can instead mint $EX for 1.009 $stS. This mechanism helps recapitalize the protocol while maintaining approximate peg stability.

Black Hole Epoch

The protocol also tracks sentiment through a Sentiment Factor (SF), which starts at 15 and changes based on epoch types. Dark epochs reduce this factor, with consecutive dark epochs causing accelerating reductions. If the SF would reach zero, the protocol triggers a Black Hole Epoch.

During Black Hole Epochs, redemptions open, allowing users to redeem 1 $EX for 0.991 $stS or mint 1 $xEX for 1 $stS. This creates multiple stabilization mechanisms that help reclaim peg while increasing the DSR. After a Black Hole Epoch, the SF resets to 15, providing a fresh start for sentiment tracking.