Hashstack announces public test of its open protocol, giving DeFi users first look at under-collateralized loans


Road Town, British Virgin Islands, May 2, 2022, Chainwire

Hash stack funding officially announce the public testnet launch of its Open Protocol, the first ever DeFi lending protocol to offer non-custodial and secured under-collateralized lending. With this, DeFi users will be able to experience first-hand how to make the most of their collateral when borrowing. This should boost economic activity in the DeFi space.

Hashstack’s open protocol is the only product today that allows under-collateralized loans up to a 1:3 collateral-to-loan ratio. This means you can borrow up to $300 by providing only $100 as collateral. Of this amount, you can withdraw $70 (i.e. up to 70% collateral), while using $230 as trading capital on the platform.

To further the use of $230 locked in the protocol as trading capital, Hashstack has developed a new mechanism that allows for eternal scalability of storage and smart contract logic; a significant improvement over the current industry standard EIP 2535. The Hashstack team will submit an Ethereum improvement proposal (EIP 9000) to help foster the development of secure and scalable smart contracts. This will allow Hashstack to integrate as many dApps as possible with the open protocol without the need to change smart contract addresses, expanding the ways users can use the amount locked into the protocol.

Our public testnet attracted over US$5 million in Total Value Locked (TVL) immediately after going live. The public testnet release marks a significant achievement in the Hashstack roadmap as we prepare to launch the open protocol later in Q2 2022commented Hashstack Finance founder Vinay Kumar.

Thanks to the development team’s dedicated preparation and execution, the Open Protocol public testnet brings a plethora of features and enhancements, including:

  • An improved user interface.
  • A hybrid access model to improve stability. The new model is a combination of the base interest rate plus an algorithmic determinant held constant for 3-7 days.
  • Move from centralized backend to decentralized blockchain to increase transparency.

While current DeFi lending protocols require over-collateralization, Hashstack is proud to give borrowers a glimpse into the future of DeFi lending. Whether you need to borrow for personal cash flow needs, leveraged investments in IDOs, or business capital, Open Protocol makes instant undersecured loans easy.

To accelerate DeFi lending growth, Hashstack’s open protocol eliminates inefficiencies in the DeFi ecosystem through a three-pronged approach:

  • Clear partitioning of the APY and APR of deposits/loans with that of their minimum commitment period (MCP)
  • Efficient use of assets through the diversification of available assets through loans and the provision of business capital
  • Under-secured loans

Hashstack integrates with other DeFi solutions such as Pancakeswap to facilitate in-app market trading and to improve loan usage. This means that borrowers can exchange borrowed tokens for other primary or secondary coins without having to switch dApps. Open Protocol also links assets from other chains such as Ethereum and Avalanche C-chain as an expansion of primary markets.

For starters, the open protocol only supports major liquid coins such as BTC, USDT, USDC, BNB, and Hashstack’s native governance token HASH.

About Hashstack

Hashstack Finance is a DeFi platform whose Open protocol aims to disrupt the DeFi lending market by offering under-collateralized loans. It addresses the need for lack of under-collateralized lending opportunities for retail cryptocurrency investors by allowing loans up to 3x collateral to meet personal financial needs and business capital needs. Users can obtain under-secured loans to avoid having to sell their long-term assets to meet their short-term cash flow needs.

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