Hashstack Finance, a DeFi platform that leverages its Open Protocol to disrupt the DeFi lending market today announced it had secured $1 million seed funding from numerous crypto and blockchain venture capital firms.
Hashstack Finance Bags $1 Million in Funds
Shortly after the launch of its Open Protocol testnet, Hashstack Finance today announced it had successfully closed a $1 million seed funding round.
The project aims to use the funds toward developing the Open Protocol, attract top talent, and foster the community.
Notably, the seed round witnessed participation from several well-known investors in the crypto circles such as GHAF Capital Partners, Moonrock Capital, Kane & Rao Group, Nimrod Lehavi, MarketAcross, and Chainridge Capital.
Commenting on the development, Vinay, the founder of Hashstack Finance, 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.”
What Is Open Protocol?
Hashstack Finance’s Open Protocol is the only autonomous lending solution in the DeFi space that allows users to take non-custodial, under-collateralized loans with up to 1:3 collateral-to-loan ratio.
terms, it means that users can borrow up to $300 by providing only $100 as collateral. Of this, they can withdraw $70 (up to 70 percent collateral), while utilizing $230 as in-platform trading capital.
Kevin Kurian, General Partner at Kane & Rao Group, noted:
“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.”
Features of Hashstack Finance
Most of the DeFi protocols today require over-collateralization. Haskstack aims to change the game by offering the users a glimpse into the future of DeFi lending. Open Protocol caters to all users demands via instant under-collateralized loans, be it personal cash needs, leveraged investments in IDOs, or trading capital.
Nimrod Lehavi, CEO, Simplex, said:
“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.”
Hashstack’s Open Protocol takes the major point paints facing the current DeFi landscape via its three-pronged approach.
- Clear compartmentalisation of APY and APR of deposits/loans with that of their minimum commitment period (MCP)
- Effective asset utilization through diversification of available assets via lending and providing trading capital
- Under-collateralized loans
Feras El Sadek of GHAF Capital Partners noted:
“All our companies including Hashstack hold a great value to us. We at Ghaf Capital are very excited to back Hashstack as we view them as an essential cog in the crypto ecosystem, solving major issues to allow the blockchain space to go mainstream, making crypto accessible and affordable to billions of people all over the world. I personally admire how they push to add value to the whole system of the blockchain world. We in Ghaf Capital Partners hold similar values in that sense. We always push start-ups to do more and help support their growth continuously. It’s great to see others be a part of our company’s mission.”
It’s also worth highlighting that Hashstack seamlessly integrates with other DeFi solutions such as PancakeSwap to enable in-app market swaps to improve loan utilization.
Through the aforementioned integration, borrowers can swap the borrowed tokens into other primary coins or secondary coins without any need to switch the dApp.
In addition, Open Protocol also bridges digital assets from other smart contract platforms such as Ethereum and Avalanche C-chain to expand the primary markets.
Initially, Open Protocol will support only major liquid coins such as BTC, ETH, USDT, USDC, BNB, and its native governance token HASH.