Hashstack Finance has 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 achievement for Hashstrack as they prepare to unveil the Open Mainnent protocol soon.
Open Protocol claims to be the only independent lending solution in DeFi that offers loans that are not secured by full collateral. For example, it offers $300 for a $100 deposit, but you can only withdraw $70 while the $230 stays in the platform as “in-platform” capital.
Vinay, founder of Hashstack’s Finance, said:
Today, if you want to borrow $100 from Compound, or Aave, or even MakerDAO, you need to provide collateral of at least $142. This breaks the main intent behind obtaining loans and has restrictive use cases for the borrower. By comparison, through Hashstack’s Open protocol, you’d be able to borrow the same $100 with collateral as low as $33.33. This added value of 4.25x compared to all established market players today is a remarkable milestone for the defi ecosystem in general and will drive adoption..”
Hashstack says its model is the next level of DeFi lending. To meet the needs of its users, whether it is necessary business capital or simply borrowing money for personal needs, the Open Protocol promises to offer collateral-free instant loans. To accelerate the growth of DeFi lending, Hashstack’s Open protocol improves errors in the DeFi ecosystem using a three-pronged technique.
- Accurate categorization of APR and APY of loans and deposits with their Minimum Commitment Period (MCP).
- Efficiently utilize assets through the diversion of available assets by providing trade capital and loans.
- Provide under-secured loans
Hashstack merges DeFi solutions like Pancakeswap to improve loan utilization and improve in-app market trading.
This means that borrowers can trade borrowed tokens with other primary or secondary coins while still on the platform. Additionally, the open protocol claims to link assets from other chains like Avalanche and Ethereum to expand the primary market.
At first, the Open protocol only supports major liquidity coins such as USDT, BTC, BNBUSDC and the native Hashstack HASH token.