Main navigation

Hashstack Launches Open Protocol Testnet with Under-Collateralized Loans

Tue, 02/08/2022 - 08:07
article image
Arman Shirinyan
Open Protocol testnet is now ready to provide a unique DeFi experience
Hashstack Launches Open Protocol Testnet with Under-Collateralized Loans
Cover image via
Read U.TODAY on
Google News

Hashstack Finance has announced the testnet debut of its Open Protocol, which includes the first-ever noncustodial under-collateralized loans. The testnet release is a major milestone for Hashstack’s roadmap. The next step for the project will be a full launch of the fully functional Open Protocol mainnet in the coming weeks.

Open Protocol is an autonomous lending solution for decentralized finance that enables unique under-collateralized loans up to a 1:3 collateral-to-loan ratio. Such a ratio allows borrowing up to $300 by providing only $100 as collateral. It also allows withdrawing up to 70% of the collateral while utilizing the rest of the balance as in-platform trading capital.

Currently, the industry's standard is over-collateralization, while Hashstack provides an alternative that might become a common part of any DeFi protocol in the future. Whether it is personal cash needs, leveraged investments or trading, users are able to receive instant under-collateralized loans.

Hashstack’s Open Protocol also aims to fix inefficiencies from other parts of the DeFi ecosystem. The project seeks compartmentalization of APY and APRT of deposits and loans with the minimum commitment period. Hashstack is also planning to provide  diversification of available assets via lending and providing trading capital.

Open Protocol is integrated with other DeFi solutions and protocols such as Pancakeswap to facilitate in-app market swaps and further improve loan utilization. The integration means that borrowers are eligible for swapping borrowed tokens into other primary or secondary coins without needing to switch the decentralized application.

Open Protocol is also able to bridge assets from other chains, such as Ethereum and Avalanche. At the beginning, Open Protocol will support only such major liquid coins as BTC, USDT, USDC, BNB and Hashstack’s native governance token, HASH.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.