Following the launch of its Open Protocol testnet, Hashstack has closed a seed funding round in which it secured $1 million from Moonrock. Apart from Moonrock Capital, dozens of other major investors participated in the seed round, including GHAF Capital Partners, Kane & Rao Group, Nimrod Lehavi, MarketAcross, and Chainridge Capital.
Funds realized will be used to further develop Open Protocol and attract top talent as well as grow the community.
“Bringing under-collateralization to the DeFi is critical to our mission at Hashstack. We are grateful to be backed by some of the smartest money in this ecosystem. The funds raised will be utilized towards talent acquisition, product development & growth,” Hashstack Finance founder Vinay said.
The Hashstack Open Protocol is an autonomous lending solution DeFi. The only lending platform of its kind, Hashstack provides non-custodial under-collateralized loans up to 1:3 collateral-to-loan ratio. Anyone can get loans of up to 3x their collateral and can withdraw up to 70% of the collateral value while using the rest to trade on the platform.
The under collateralization is what sets this platform apart from other DeFi lending protocols which require over-collateralization. The aim of the project is to make funding instantly available for any purpose ranging from personal cash needs, leveraged investments in IDOs, to trading capital. Commenting on the protocol, Simplex CEO, Nimrod Lehavi said:
“DeFi lending is at its inflection point. Hashstack smartly circumvents the need for on-chain credit score in order to facilitate under-collateralized loans. Hashstack has the potential to be one of the pioneers of Layer – 3 enabler solutions.”
Hashstack has a three-pronged approach to eliminating inefficiencies in the DeFi ecosystem. This includes”
- Under-collateralized loans
- Clear compartmentalisation of APY and APR of deposits/loans with that of their minimum commitment period (MCP)
- Effective asset utilization through diversification of available assets via lending and providing trading capital
to facilitate in-app market swaps and to improve loan utilization, Hashstack integrates with other DeFi solutions such as Pancakeswap. This allows users to easily swap borrowed tokens into other primary or secondary coins without the need to switch the dApp. The protocol also bridges blockchains for interoperability such as Ethereum and Avalanche C-chain.
For now, Hashstack governance token, HASH is supported alongside high liquid crypto including BTC, USDT, USDC, BNB. more tokens will be supported in the future to give users more options to choose from.