Hashstack Debuts Its Open Protocol Testnet, Disrupts DeFi Lending Market
- Hashstack Finance is thrilled to announce the testnet debut of its Open protocol.
- The Open protocol is an autonomous lending solution in DeFi.
- It enables under-collateralized loans up to a 1:3 collateral-to-loan ratio.
- Open protocol supports only BTC, USDT, USDC, BNB, and token HASH.
Hashstack Finance is at a momentous stage of its innovation as it announces that it has marked a significant milestone with the testnet launch of its Open protocol. The Open protocol, according to the team, is the first-ever DeFi lending protocol to offer non-custodial, secure under-collateralized loans.
Hashstack Finance has tasked itself with addressing the need of lacking collateralized lending avenues for retail cryptocurrency investors by facilitating loans at up to 3x collateral. With this, it services personal financial needs and trading capital requirements or leveraged investments in IDOs of the masses.
Most importantly, users can secure instant under-collateralized loans to prevent having to sell their long-term holdings to meet their short-term cash needs. Comparing Hashstack Finance’s Open protocol with others, founder Vinay states,
Today, if you want to borrow $100 on Compound, or Aave, or even MakerDAO, you are required to provide 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 inefficiencies from the DeFi ecosystem through a three-pronged approach including clear compartmentalization of APY and APR of deposits/loans with that of their minimum commitment period (MCP).
Similarly, it enables effective asset utilization through diversification of available assets via lending and providing trading capital and under-collateralized loans to accelerate the growth of DeFi lending.
Since Hashstack integrates with other DeFi solutions such as Pancakeswap, borrowers can swap the borrowed token into other primary coins or secondary coni without the need to switch the dApp.
It is important to note that the Open protocol only supports major liquid coins including BTC, USDT, USDC, BNB, and Hashstack’s native governance token HASH. Above all, Hashstack is following through with its roadmap as it prepares to launch the Open protocol mainnent soon.
Read more: https://coinquora.com/hashstack-debuts-its-open-protocol-testnet-disrupts-defi-lending-market/
Text source: News – CoinQuora – Latest Cryptocurrency and Block
