Hashstack Finance just announced the launch of the testnet for its Open protocol, the first-ever non-custodial DeFi lending protocol offering reliable under-collateralized loans.
This is a significant accomplishment for Hashstrack as they prepare to unveil the Open protocol mainnent soon.
Open protocol claims to be the only independent lending solution in DeFi that offers loans that are not backed by full collateral. For example, it offers $300 for depositing $100, but you can only withdraw $70 while the $230 remains in the platform as “In platform” capital.
Vinay, Hashstack’s Finance founder, said,
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 says that its model is the next level of DeFi lending. To cater to its users’ needs, whether its trading capital needed or just borrowing cash for personal needs, the Open protocol promises to offer instant loans with no collateral. To fastrack the growth of DeFi lending, Hashstack’s Open protocol improves on the errors from the DeFi ecosystem using a three-pronged technique.
- Precise categorisation of APR and APY of loans and deposits with their minimum commitment period (MCP).
- Utilizing assets effectively via diversion of assets available through providing trading capital and lending.
- Providing Under-collateralized loans
Hashstack merges DeFi solutions likePancakeswap to improve loan utilization and enhance in-app market trade.
This means that borrowers can exchange borrowed tokens with other primary or secondary coins while still on the platform. In addition, open protocol claims to link assets from other chains like Avalanche and Ethereum to expand the primary market.
At the start, Open protocol only supports main liquidity coins such as USDT, BTC, BNBUSDC, and the native token of Hashstack HASH.