A few days after launching its Open Protocol testnet, Hashstack Finance has secured $1 million seed funding in a fundraising round that saw the likes of Moonrock, GHAF Capital, Kane & Rao Group, MarketAcross, Chainridge Capital, and Nimrod Lehavi invest in the project. The funds shall be used to develop the Open Protocol and attract top talent to the growing Hashstack Finance community.
Kevin Kurian, a general partner at Kane & Rao Group, said:
“Getting the maximum value out of your assets is essential in any market. Hashstack offers a solution that the market has not really seen before. We backed Vinay and his team at Hashstack with our capital to bring forward these new ideas.”
The Open Protocol aims at allowing crypto users to access under-collateralized DeFi loans. It is the only decentralized DeFi lending solution that offers non-custodial, under-collateralized loans. It offers under collateralized loans of up to a collateral-to-loan ratio of 1:3. If an individual, for instance, can borrow up to $600 by providing only $200 as collateral. And out of the funds gotten as loan, the individual can withdraw up to 70% of the collateral and use the remaining about as in-platform capital.
Hashstack Finance founder Vinay said:
“Bringing under-collateralization to the DeFi is critical to our mission at Hashstack. We are grateful to be backed by some of the smartest money in this ecosystem. The funds raised will be utilized towards talent acquisition, product development & growth.”
Simplex CEO Nimrod Lehavi commented on Open Protocol saying:
“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.”
On top of launching the Open Protocol, Hashstack has integrated several other DeFi solutions like Pancakeswap to facilitate in-app crypto market swaps and to improve loan utilization. Therefore, Open Protocol can borrow and swap the borrowed cryptocurrencies with others without the need of switching to other DApps.
At the moment, the Open protocol only supports major liquid coins including BTC, BNB, USDT, USDC, and Hashstack’s native governance token HASH.