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.