Decentralized finance (DeFi) platforms Quibit Finance and Wormhole made headlines with security issues in which their systems were hacked and losses where recorded even though for the latter, it was recuperated.
The scar has already been imprinted already which definitely would call for an eye into bugs and more focus code building.
Taking us far away from omens that rocked DeFi platforms, this is actually a good news that Hashstack Finance is trailblazing into DeFi lending protocol which is one of the most interesting aspect of DeFi platforms.
Lending and borrowing has become part of our day to day living in the world and decentralized finance (DeFi) involves lending and borrowing cryptocurrency which involves the use smart contracts on a blockchain. DeFi platforms allow people to lend or borrow funds from others while earning interest without a third party.
Hashstack Finance is a DeFi platform that introduces an open protocol in a testnet which is the first DeFi lending protocol in history to offer secure, non-custodial, under-collateralized loans.
The open protocol of Hashstack Finance helps reduce collateral that a user is to pay which beats everyother DeFi platform.
According to Hashstack, Hashstack’s Open protocol is the DeFi's only autonomous lending solution enabling under-collateralized loans upto 1:3 collateral-to-loan ratio.
This means, on Open, you can borrow upto $300 by providing only $100 as a collateral. Of this, you can withdraw $70(i.e. upto 70% collateral), while utilising $230 as in-platform trading capital.
This is a good offer that anyone would grab without hesitation, paying less for what is offered.
Would one call this too good good to be true?
Hashstack Finance founder Vinay proved a point stating, 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.
Hashstack open protocol is built on Harmony blockchain as Harmony made a tweet.
Hashstack Finance governance token is Hash token.
While the HASH token will be deployed to Binance smart chain, Ethereum and Harmony, Open protocol will reside on Harmony blockchain.
The best is always yet to come and I'd love to see where projects would end up being especially those projects that have people first at heart.
Thanks for visiting my blog, till next time.