Hashstack launches its Open Protocol testnet

Hashstack has launched its Open Protocol in a bid to improve services currently available in the DeFi space.

The Hashstack team has announced the launch of its Open Protocol Testnet. In a press release shared with CoinAdvisor earlier today, the team said it plans to disrupt the DeFi ecosystem.

The Open Protocol service is designed to disrupt DeFi lending by eliminating inefficiencies and facilitating loans up to 3x the collateral.

The team added that Open Protocol is the first-ever DeFi lending protocol to offer non-custodial, secure under-collateralised loans.

This latest development is a huge accomplishment in Hashstack’s roadmap as it prepares to launch the Open protocol mainnet in the coming weeks. Hashstack Finance founder Vinay said;

“Today, if you want to borrow $100 on Compound, or Aave, or even MakerDAO, you are required to provide a collateral of at least $142. This breaks the primary intent behind loan procurement and has restrictive use-cases for the borrower. In comparison, through Hashstack’s Open protocol, you would be able to borrow the same $100 with collateral as little as $33.33. This 4.25x value-add against every established market player today is a remarkable milestone for the defi ecosystem in general and will drive further adoption.”

The Hashstack team said Open Protocol is the only autonomous lending solution in DeFi that enables under-collateralized loans up to 1:3 collateral-to-loan ratio.

Hashstack’s Open protocol eliminates inefficiencies from the DeFi ecosystem using three approaches. The first is providing under-collateralised loans. The second is the clear compartmentalisation of APY and APR of deposits/loans with that of their minimum commitment period (MCP).

Finally, it intends to eliminate the inefficiencies by effective asset utilisation through diversification of available assets via lending and providing trading capital.

To improve loan utilisation and to facilitate in-app market swaps, Hashstack integrates with other DeFi solutions such as Pancakeswap. This implies that the borrowers can swap the borrowed tokens into other primary coins or secondary coins without the need to switch the dApp.

Furthermore, the Open Protocol bridges assets from other chains such as Ethereum and Avalanche C-chain as an expansion of the primary markets.