Hashstack secures $1M seed funding to bring under-collateralized loans to DeFi

Hashstack Finance, hot on the heels the launch of the Open Protocol testnet is delighted to announce that it has closed its $1 million seed financing round. The funds will be used by the project to develop the Open Protocol and attract top talent.

The seed round saw participation from dozens of well-known investors including GHAF Capital Partners, Moonrock Capital, Kane & Rao Group, Nimrod Lehavi, MarketAcross, and Chainridge Capital.

Hashstack Finance founder Vinay said, “Bringing under-collateralization to the DeFi is critical to our mission at Hashstack. We are grateful to have been backed by some the smartest people in this ecosystem. The funds raised will be utilized towards talent acquisition, product development & growth.”

Hashstack’s Open Protocol is the only autonomous lending solution in DeFi that enables non-custodial, under-collateralized loans up to 1:3 collateral-to-loan ratio. This means that you can borrow up $300 with only $100 collateral. You can withdraw $70, i.e. You can withdraw $70 (i.e. collateral) and use $230 as intra-platform trading capital.

Kevin Kurian, General Partner at Kane & Rao Group, said, “Getting the maximum value out of your assets is essential in any market. Hashstack presents a unique solution that the market has never seen before. We backed Vinay and his team at Hashstack with our capital to bring forward these new ideas.”

While the current DeFi lending protocols require over-collateralization, Hashstack is proud to give borrowers a glimpse into the future of DeFi lending. Open protocol allows you to instantly borrow under-collateralized money, whether it’s for your personal cash needs, IDO leveraged investments, or trading capital.

“DeFi lending is at its inflection point. Hashstack cleverly avoids the requirement for an on-chain credit score to facilitate under-collateralized loan. Hashstack has the potential to be one of the pioneers of Layer – 3 enabler solutions,” commented Simplex CEO Nimrod Lehavi.

To accelerate the growth of DeFi lending, Hashstack’s Open protocol eliminates inefficiencies from the DeFi ecosystem through a three-pronged approach:

  • Clear segregation of APY/APR for deposits/loans based on their minimum commitment period
  • Diversification of assets through lending and trading capital is key to effective asset utilization
  • Sub-collateralized loans

Feras El Sadek of GHAF Capital Partners noted, “All our companies including Hashstack hold a great value to us. Ghaf Capital is excited to support Hashstack because they see them as an integral part of the crypto ecosystem. They solve major problems to make crypto more mainstream and accessible to billions.

Personally, I admire their efforts to bring value to the entire blockchain system. Ghaf Capital Partners shares similar values. We encourage start-ups and support their growth constantly. It’s great to see others be a part of our company’s mission.”

Hashstack can be integrated with other DeFi solutions like Pancakeswap in order to facilitate loan utilization and in-app market swaps. This allows borrowers to swap borrowed tokens for other primary coins and secondary coins without having to change the dApp. Open protocol allows assets to be transferred from other chains, such as Ethereum or Avalanche C.chain, as part of an expansion in the primary markets.

To begin with, the Open protocol supports only major liquid coins such as BTC, USDT, USDC, BNB, and Hashstack’s native governance token HASH.

About Hashstack

Hashstack Finance, a DeFi platform with an Open protocol, offers under-collateralized loans and aims to disrupt DeFi lending. This platform provides loans with up to 3x collateral that can be used for personal financial and trading capital needs. Users can get under-collateralized loans so they don’t have to sell long-term holdings in order to meet their cash short-term needs.

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