Hashstack secures $1m seed funding from Moonrock, GHAF Capital and others as it brings under-collateralized loans to DeFi space
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Road Town, British Virgin Islands, March 1, 2022, Chainwire — On the heels of the launch of its Open Protocol testnet, Hashstack Finance is thrilled to announce the closing of its $1 million seed funding round. The project will use the proceeds to grow the open protocol, attract top talent, and grow the community.
The 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 sub-collateralization to DeFi is critical to our mission at Hashstack. We are grateful to be backed by some of the smartest funds in this ecosystem. Funds raised will be used for talent acquisition, product development and growth.
Hashstack’s open protocol is the only standalone lending solution in DeFi that enables non-custodial and under-collateralized lending at up to a 1:3 collateral-to-loan ratio. This means you can borrow up to $300 by providing only $100 as collateral. Of this amount, you can withdraw $70 (i.e. up to 70% collateral), while using $230 as trading capital on the platform.
Kevin Kurian, General Partner of the Kane & Rao Group, said:Getting the most out of your assets is essential in any market. Hashstack offers a solution that the market hasn’t really seen before. We’ve backed Vinay and his team at Hashstack with our capital to push these new ideas forward..”
While current DeFi lending protocols require over-collateralization, Hashstack is proud to give borrowers a glimpse into the future of DeFi lending. Whether you need to borrow for personal cash flow needs, leveraged investments in IDOs, or business capital, Open Protocol offers instant undersecured loans.
“DeFi lending is at its inflection point. Hashstack cleverly circumvents the need for an on-chain credit score to facilitate under-collateralized loans. Hashstack has the potential to be one of the pioneers of layer-3 enablement solutionscommented Simplex CEO Nimrod Lehavi.
To accelerate DeFi lending growth, Hashstack’s Open Protocol eliminates inefficiencies in the DeFi ecosystem through a three-pronged approach:
- Clear partitioning of the APY and APR of deposits/loans with that of their minimum commitment period (MCP)
- Efficient use of assets through the diversification of available assets through loans and the provision of business capital
- Under-secured loans
Feras El Sadek of GHAF Capital Partners noted: “All of our businesses, including Hashstack, are of great value to us. We at Ghaf Capital are very happy to support Hashstack as we see them as an essential cog in the crypto ecosystem, solving major problems to enable the blockchain space to go mainstream, making crypto accessible and affordable for billions of people. people all over the world. Personally, I admire how they strive to add value to the whole system of the blockchain world. At Ghaf Capital Partners, we have similar values in this sense. We always push start-ups to do more and help support their continued growth. It’s great to see others being part of our company’s mission.”
Hashstack integrates with other DeFi solutions such as Pancakeswap to facilitate in-app market trading and to improve loan usage. This means that borrowers can exchange borrowed tokens for other primary or secondary coins without having to switch dApps. The open protocol also links assets from other chains such as Ethereum and Avalanche C-chain as an expansion of primary markets.
For starters, the Open protocol only supports major liquid coins such as BTC, USDT, USDC, BNB, and Hashstack’s native governance token HASH.
Hashstack Finance is a DeFi platform whose Open protocol aims to disrupt the DeFi lending market by offering under-collateralized loans. It addresses the need for lack of under-collateralized lending opportunities for retail cryptocurrency investors by allowing loans up to 3x collateral to meet personal financial needs and business capital needs. Users can obtain under-secured loans to avoid having to sell their long-term assets to meet their short-term cash flow needs.