Hashstack launches public testnet of its Open Protocol
- Open Protocol will give DeFi users access to under-collateralized loans of up to 1:3
- Boosting DeFi lending
- Developers working on the Open Protocol designed it to eliminate inefficiencies associated with DeFi platforms
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Open Protocol will give DeFi users access to under-collateralized loans of up to 1:3
DeFi lender Hashstack Finance has officially launched the public testnet of its Open Protocol, a product that will see investors in the decentralized finance ecosystem access under-collateralized of up to three times their collateral.
The platform, which pioneered non-custodial, under-collateralized loans, says the move is aimed at ensuring DeFi users get maximum benefits from any collateral they put forward when borrowing.
Open Protocol will therefore boost the broader DeFi ecosystem’s economic activity, the Hashtack team said in a press release on Friday.
“Our public testnet has attracted over US$5 million in total value locked (TVL) immediately after going live. The public testnet release marks a significant accomplishment in Hashstack’s roadmap as we prepare to launch the Open Protocol mainnent later in the second quarter of 2022,” said Vinay Kumar, the founder of Hashstack Finance.
Boosting DeFi lending
With Open Protocol, users have a chance to borrow against their crypto assets at an under-collateralized loan ratio of 1:3, the team noted. This is the highest collateral-to-loan ratio in the market, the team explained.
An investor can therefore borrow three times their collateral, with the protocol then allowing them to withdraw up to 70% of their collateral.
As part of accelerating growth within the DeFi lending space, developers working on the Open Protocol designed it to eliminate inefficiencies associated with DeFi platforms.
This works via a three-pronged approach, including clear compartmentalization of deposits or loans’ APY and APR to respective minimum commitment period (MCP).
There’s also diversification of assets through lending and provision of trading capital, while the third approach is through the offering of under-collateralized loans.
The Open Protocol currently supports only the major coins that are the most liquid in the market. They include Bitcoin (BTC), BNB, Tether (USDT), USD Coin (USDC), and HASH, then natuve governance token in the Hashstack ecosystem.