Hashstack Launches the Open Protocol Testnet, Bringing First Under-Collateralized Loans to DeFi

Hashstack Launches the Open Protocol Testnet, Bringing First Under-Collateralized Loans to DeFi


[PRESS RELEASE – Road Town, British Virgin Islands, 7th February 2022]

Hashstack Finance is thrilled to announce the testnet debut of its Open protocol, the first-ever DeFi lending protocol to supply non-custodial, safe under-collateralized loans. The milestone marks a major accomplishment in Hashstack’s roadmap because it prepares to launch the Open protocol mainnent within the coming weeks.

Open protocol is the one autonomous lending resolution in DeFi that allows under-collateralized loans as much as 1:3 collateral-to-loan ratio. It means you’ll be able to borrow as much as $300 by offering solely $100 as collateral. Of this, you’ll be able to withdraw $70 (i.e. as much as 70% collateral), whereas using $230 as in-platform buying and selling capital.

Hashstack Finance founder Vinay mentioned, “In the present day, if you wish to borrow $100 on Compound, or Aave, and even MakerDAO, you’re required to offer collateral of not less than $142. This breaks the first intent behind mortgage procurement, and has restrictive use-cases for the borrower. As compared, by means of Hashstack’s Open protocol you’ll be capable to borrow the identical $100 with collateral as little as $33.33. This 4.25x value-add towards each established market participant right this moment is a outstanding milestone for the DeFi ecosystem usually, and can drive additional adoption.”

Whereas the present DeFi lending protocols require over-collateralization, Hashstack is proud to present debtors a glimpse into the way forward for DeFi lending. Whether or not it’s essential borrow for private money wants, leveraged investments in IDOs, or buying and selling capital, Open protocol gives immediate under-collateralized loans.

To speed up the expansion of DeFi lending, Hashstack’s Open protocol eliminates inefficiencies from the DeFi ecosystem by means of a three-pronged strategy:

  • Clear compartmentalization of APY and APR of deposits/loans with that of their minimal dedication interval (MCP).
  • Efficient asset utilization by means of diversification of obtainable belongings by way of lending and offering buying and selling capital.
  • Beneath-collateralized loans.

Hashstack integrates with different DeFi options corresponding to Pancakeswap to facilitate in-app market swaps and to enhance mortgage utilization. It means the debtors can swap the borrowed tokens into different major cash or secondary cash with out the necessity to change the dApp. Open protocol additionally bridges belongings from different chains corresponding to Ethereum and Avalanche C-chain as an enlargement of the first markets.

To start with, the Open protocol helps solely main liquid cash corresponding to BTC, USDT, USDC, BNB, and Hashstack’s native governance token HASH.

About Hashstack

Hashstack Finance is a DeFi platform whose Open protocol goals to disrupt the DeFi lending market by providing under-collateralized loans. It addresses the necessity of missing under-collateralized lending avenues for retail cryptocurrency buyers by enabling loans at as much as 3x collateral to serve the non-public monetary wants and buying and selling capital necessities. Customers can safe under-collateralized loans to keep away from having to promote their long-term holdings to fulfill their short-term money wants.


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