Hashstack Finance releases Open protocol for DeFi lending
HashStack has just released the public testnet of its Open protocol, the world’s first-ever DeFi lending protocol to offer under-collateralized loans. The testnet is fully functional with over $5 million in TVL.
Hashstack gives users a glimpse into the future of DeFi lending with under-collateralized loans.
The DeFi lending landscape has been heating up in recent months. Hashstack Finance, a leading DeFi platform aiming to disrupt the DeFi lending market has announced that its public testnet is live for the public.
The Open Protocol is designed to be resilient as with all decentralized applications. The public testnet offers an improved user interface, hybrid access for stability, and a switch to a fully decentralized blockchain to offer transparency.
Rather than ending up with over-exposure between a few major depositors, Hashstacks has created an open vision where many lenders come together under one roof. In addition, the DeFi loans to the depositors are secure, open, and transparent.
“Our public testnet has attracted over US$5 million in total value locked (TVL) immediately after going live. The public testnet release marks a significant accomplishment in Hashstack’s roadmap as we prepare to launch the Open Protocol mainnet later in the second quarter of 2022,” commented Hashstack Finance founder Vinay Kumar.
On these under-collateralized loans
By catering to retail cryptocurrency investors, Hashstack is using under-collateralized loans at up to 3 times the amount to facilitate the trading capital requirements of the retail market. With this new lending protocol, users can secure loans whilst also keeping their long terms holdings safely stored away.
A number of existing DeFi platforms offer a way for crypto users to earn interest on their crypto and borrow crypto at the same time. What makes Hashstack interesting is its extreme public nature. To prevent over-collateralization Hashstack offers its Open protocol whereby you can borrow up to $300 by providing only $100 of the collateral. Of this, you can withdraw $70 (i.e. up to 70% collateral), while utilizing $230 as in-platform trading capital. This makes the Open protocol the only under-collateralized lending platform in the market.
Hashstack integrates with other DeFi solutions such as Pancakeswap to facilitate in-app market swaps. It means the borrowers can swap the borrowed tokens into other primary coins or secondary coins without the need to switch the dApp. Open Protocol also bridges assets from other chains such as Ethereum and Avalanche C-chain as an expansion of the primary markets.
The protocol supports major liquid coins such as BTC, USDT, USDC, BNB, and Hashstack’s native governance token HASH. Whether you want to borrow for personal cash, leverage investments in IDOs, or trading capital, Open Protocol is designed to facilitate easy access to instant under-collateralized loans.
Now, DeFi users will be able to experience first-hand how to get the maximum value out of their collateral when borrowing.