Hashstack Finance secures $1 million seed funding, to offer under-collateralised loans to DeFi users

Hashstack Finance has announced it successfully closed a $1 million seed funding round that attracted several well-known investors in the crypto space.

The platform, which recently launched its Open Protocol testnet, said in a press statement that top participants in the round included Moonrock Capital, GHAF Capital Partners, Simplex CEO Nimrod Lehavi, Kane & Rao Group and Chainridge Capital.

Bringing under-collateralised loans to DeFi

Hashstack Finance plans to use the funds to further develop its Open Protocol, recruit top talent from the crypto space, and grow the community around the project.

Apart from these, Hashstack Finance wants to bring under-collateralised loans to the decentralised finance (DeFi) space, according to the platform’s founder Vinay.

Under Hashstack’s Open Protocol, DeFi users can borrow on a 1:3 collateral-to-loan ratio, meaning they get to borrow up to three times the set collateral. The protocol also allows users to withdraw up to 70% of the collateral, giving them an opportunity to trade with the loan and have the extra funds placed in other investments.

According to Hashtack, this is the future of DeFi lending and gives users the chance to get maximum value from their assets.

“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,” said Nimrod Lehavi, the CEO of Simplex.

Other than under-collateralised loans, Hashstack’s Open protocol helps the DeFi lending ecosystem by eliminating inefficiencies “clear compartmentalisation of APY and APR of deposits or loans with that of their minimum commitment period (MCP).”

The platform also provides for “effective asset utilisation through diversification of available assets via lending and providing trading capital,” it said in a statement.

Integrations and swaps

Hashstack’s technology allows for integration with other protocols in the DeFi space to make it easy for users seeking seamless swaps into other primary tokens.

One of the key integrations is with Pancakeswap, a DeFI protocol on which users can access in-app market swaps. Users can also swap into secondary coins, all possible without having to switch from the dApp.

With these features, customers can improve their loan utilisation by swapping borrowed tokens into liquid tokens such as Bitcoin (BTC), Tether (USDT), and BNB.

The Open protocol also supports Hashtack Finance’s native token HASH and stablecoin USD Coin (USDC).