Hashstack launches Open protocol testnet, offering under-collateralized loans

The DeFi lending and borrowing marketplace has grown importantly successful measurement arsenic caller lending protocols proceed to pull superior and NFT-backed loans become much popular. According to Dune Analytics, the apical 3 platforms successful presumption of marketplace capitalization are Aave, Maker,  and Compound. These platforms, however, inactive are facing issues erstwhile it comes to collateral requirements and volatile integer assets.

Hashstack Finance is simply a DeFi level whose crypto-native lending protocol, called Open, is trying to supply a solution to collateral requirements, specifically the over-collateralization of loans. Hashstack announced connected Monday the merchandise of its closed beta testnet that enables the opposite: autonomous under-collateralized loans. Built connected the Harmony blockchain, Hashstack's Open protocol claims to fto borrows instrumentality retired a indebtedness with an up to 1:3 collateral-to-loan ratio. 

According to the company, this means a idiosyncratic tin get up to $300 by providing lone $100 arsenic collateral. Of this, helium oregon she tin retreat 70% collateral, oregon $70 successful this case, portion utilizing $230 arsenic in-platform trading capital. Hashstack claimed that DeFi lending tends to beryllium implicit collateralized and, connected average, a borrower provides a minimum of 42% excess collateral against the indebtedness they mean to borrow.

Vinay, Hashstack Finance laminitis explained, “Today, if you privation to get $100 connected Compound, oregon Aave, oregon adjacent MakerDAO, you are required to supply a collateral of astatine slightest $142. This breaks the superior intent down indebtedness procurement, and has restrictive use-cases for the borrower."

Related: Genesis issues $6M NFT-backed indebtedness to Meta4 Capital

Hashstack tin beryllium integrated with different DeFi solutions, specified arsenic Pancakeswap, to facilitate in-app marketplace swaps and to amended indebtedness utilization, arsenic stated by the company. This mechanics allows borrowers to swap the borrowed tokens into different superior coins oregon secondary coins without the request to power the dApp. Open protocol besides bridges assets from different chains specified arsenic Ethereum and Avalanche C-chain.

Hashstack's Open protocol was 1 of the galore approved proposals from Harmony's $300 cardinal Ecosystem Fund announced astatine the extremity of 2021. 

— Harmony (@harmonyprotocol) December 5, 2021

Related: What is Harmony (ONE) blockchain and wherefore it is getting truthful overmuch traction?

Recently, Li Jiang, main operating serviceman astatine Harmony, told Cointelegraph that he believes that "the aboriginal is multichain and cross-chain" and the quality to determination assets precise easy from 1 concatenation to different is the cardinal towards mainstream adoption.