Hashstack Launches Highly Competitive Sub-Collateral Lending Solution
Over the past few years, there have been significant changes in the lending and borrowing landscape. Unbanked and underbanked people are often subject to exorbitant interest rates or are required to make a large down payment, simply because they have no credit score. Therefore, an excellent intrusive solution for the current traditional system is needed – one that does not impose restrictions on the social status of the borrower.
On Monday, Hashstack announced the release of a closed beta testnet for its Based on DeFi loan protocol, open. Built on the Hashstack blockchain, the Open protocol promises to enable under-collateralized lending. This means that a borrower could take out a $300 loan with only $100 collateral, or even none in some cases.
The company says it’s not only more convenient for borrowers, but also cheaper and safer for lenders, who can get better returns if they decide to lend their capital against another party’s bad debt. . DeFi loans have been criticized for being over-collateralized and inefficient in the past, the average loan requiring excess collateral of 42% above the loan itself. Open aims to change that by introducing a decentralized protocol that allows sub-collateralization, which is both cheaper and more secure.
Hashstack is open source and uses a decentralized governance model with HASH, which replaces any native token on the platform. The team and the community can unlock more collateral types and main tokens by controlling and voting on the network. The content economy fosters new business models that are difficult to execute in traditional centralized operations.
As expected, the open protocol will support major liquid coins, such as [[BTC]], BNB, USDT, USDC and HASH when launched.