Hashstack Finance has successfully launched a new lending option for decentralized finance (DeFi) on its crypto-native lending protocol Open. The new lending option currently on testnet will now offer secure under-collateralized loans up to 300% of your collateral for personal finance & trading capital needs.
In a February 7 announcement, Hashstack Finance, a decentralized finance (DeFi) lending protocol focused on providing the solution to collateral requirements, confirmed the release of its beta testnet that enables the issuance of under-collateralized loans. The beta lending version built on the Harmony blockchain will facilitate under-collateralized loans up to a 1:3 collateral-to-loan ratio.
According to the company, users can now borrow up to $300 by providing only $100 as collateral. Moreover, users can retrieve 70% of their collateral while utilizing the remaining $230 as in-platform trading capital. In this case, Hashstack claimed other rival lending platforms require up to 42% excess collateral against the loan they offer.
While commenting about the new crypto development, Vinay Kumar, the Finance founder of Hashstack, explained:
Buy Bitcoin Now“Today, if you want to borrow $100 on Compound, or Aave, or even MakerDAO, you are required to provide collateral of at least $142, breaking the primary intent behind loan procurement and its restrictive use-cases for the borrower.”
Hashstack Compatible With Other DeFi Platforms
Before summarizing, Hashstack noted that its new lending option is compatible with other DeFi solution providers such as Pancakeswap to facilitate in-app market swaps or improve loan utilization. Its consensus mechanism allows borrowers to swap primary coins and secondary coins without the need to switch dApps. The Open protocol also bridges assets from other chains such as Ethereum and Avalanche C-Chain.
The Open protocol was among the approved proposals of Harmony Blockchain’s $300M Ecosystem Fund announced in December 2021.
In a recent short interview, Li Jiang, chief operating officer at Harmony, maintained that he strongly believes that “the future is multichain and cross-chain” and the ability to move assets very easily from one chain to another is the key towards mainstream adoption.
