Hashstack Finance addresses the segment of under-collateralized loans in decentralized finance. It means that the sum of the loan provided by its system is far larger then the amount of the collateral.
Hashstack Finance raises $1 million to grow its Open Protocol
As per the official statement shared by the team of Hashstack Finance, its seed funding round has ended successfully. A total of $1,000,000 is yielded from a clutch of highly reputable VCs and angel investors.
GHAF Capital Partners, Moonrock Capital, Kane & Rao Group, MarketAcross and Chainridge Capital backed the protocol's fundraising efforts in a seed round.
Renowned crypto entrepreneur Nimrod Lehavi of world-leading crypto-to-fiat conversion service Simplex supported the seed funding of Hashstack as an angel investor.
Hashstack Finance founder Vinay stressed the crucial importance of this round for the project's progress and massive adoption of its services:
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 and growth.
3x collateral loans for retail users: What is Hashstack Finance?
Fresh funds will be used to maintain Open Protocol, a flagship solution of Hashstack's ecosystem. It allows retail clients to obtain under-collateralized loans with 3x ratio.
For instance, using only $100 as a collateral, Hashstack client can get $300 as a loan. In this case, traders can withdraw $70 (i.e., up to 70% collateral), while utilizing $230 as in-platform trading capital.
Kevin Kurian, general partner at Kane and Rao Group, is sure that Hashstack's solution is a one-of-a-kind one, as no firm has proposed something similar before:
Getting the maximum value out of your assets is essential in any market. Hashstack offers a solution that the market has not really seen before. We backed Vinay and his team at Hashstack with our capital to bring forward these new ideas.
Initially launched on Binance Smart Chain, Hashstack's solution also supports bridging assets from Avalanche's (AVAX) C-Chain and Ethereum (ETH).