Hashstack Finance announced the testnet debut of Open protocol, the first DeFi lending protocol in history to offer secure, non-custodial, under-collateralized loans, Invezz learned from a press release. As the DeFi platform prepares to launch the Open protocol mainnet in the coming weeks, this is an important milestone in their roadmap.
The future of DeFi lending
Hashstack embodies the future of DeFi lending. It is a far cry from modern DeFi lending protocols, which require over-collateralized loans. Open protocol offers instant under-collateralized loans regardless of whether you need to borrow for personal cash needs, leveraged investments in IDOs, or trading capital.
Only protocol with up to 1:3 collateral-to-loan ratio
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Open protocol is the only lending solution offering under-collateralized loans with an up to 1:3 collateral-to-loan ratio. This means borrowers can get $300 with just $100 as collateral. Initially, the Open protocol will support only major liquid coins like Bitcoin (BTC/USD), USDT, USDC, Binance Coin (BNB/USD), and HASH, the platform’s native governance token.
To expand primary markets, Open protocol will bridge assets from Avalanche (AVAX/USD) and Ethereum (ETH/USD) as well.
Hashstack Finance founder Vinay commented:
Today, if you want to borrow $100 on Compound, or Aave, or even MakerDAO, you are required to provide a collateral of at least $142. This breaks the primary intent behind loan procurement, and has restrictive use-cases for the borrower. In comparison, through Hashstack’s Open protocol you would be able to borrow the same $100 with collateral as little as $33.33. This 4.25x value-add against every established market player today is a remarkable milestone for the DeFi ecosystem in general, and will drive further adoption.
Hashstack’s Open protocol eliminates DeFi inefficiencies not only thanks to its innovative under-collateralized loans, but also through effective asset utilization and a clear division between APY and APR of deposits and loans.
About Hashstack
Hashstack Finance is a DeFi platform that addresses the need of lacking under-collateralized lending avenues for retail cryptocurrency investors by enabling loans at up to 3x collateral to serve personal financial needs and trading capital requirements. Users can secure under-collateralized loans instead of selling their long-term holdings to meet their short-term cash needs.
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