Hashstack Finance, a DeFi platform that is basically aimed at improving loan utilization, is delighted to announce the launch of its Open Protocol’s TestNet.
Hashstack Finance is recognized for its unrelenting zeal to deploy possible infrastructures capable of rendering exclusive lending solutions to users.
According to the announcement, the debut of the project’s TestNet will be making headway for the Open Protocol’s mainnet launch scheduled to happen in a few weeks.
Considering the features designed with the Open protocol, the project will become the first-ever DeFi lending protocol to offer non-custodial, secure under-collateralized loans. Currently, Open protocol is the only autonomous lending solution in DeFi that enables under-collateralized loans up to a 1:3 collateral-to-loan ratio.
With this feature, users will be able to borrow up to $300 by providing only $100 as collateral. Afterward, they can withdraw up to 70% of the collateral while utilizing the rest of the total funds in-platform trading capital.
Vinay, the founder of Hashstack Finance explained the relevance of the Open protocol lending solutions compared to other current DeFi lending protocols, saying;
“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.”
The Open Protocol deploys an under-collateralized loan approach, clear compartmentalization of APY and APR of deposits/loans with that of their minimum commitment period (MCP), and effective asset utilization through diversification of available assets via lending and providing trading capital to terminate lending inefficiencies from the DeFi ecosystem.
The announcement further revealed that the Open protocol will only be supporting major liquid coins such as BTC, USDT, USDC, BNB, and Hashstack’s native governance token HASH to start with.