This is a great first in the DeFi sphere and users of lending platforms will be delighted. Until now, lending and borrowing platforms operated on an over-guaranteed collateral model.
(Read the article on the best crypto lending and borrowing sites to generate passive income)
Basically, users had to deposit more than they were going to borrow. This is what also maintains the economic viability of these platforms.
Thus, Hashstack is the very first to launch a first under-guarantee protocol, in testnet, for the moment.
In the coming weeks, the protocol will be launched in mainnet version, if all tests prove positive.
This means that interested people can register on the whitelist to be ready when the protocol is launched.
Hashstack.finance Overview
This is an unexpected and different version of flash loans which ultimately caused a lot of losses and risks in the DeFi space...
Hashtack finance’s collateral-to-loan ratio is 1:3. So a person who wants to borrow 300% will then have to provide (only) $100.
For the platform to remain viable, the borrower will be able to withdraw 70% of the guarantee (i.e. $70 out of the $100 deposited). He will have to use the rest, the $230 on the platform.
This is a radical departure from other lending platforms like Maker, Aave or Compound which are the leading platforms in this sector. On the Hashstack website, it is written that the platform offers 4,25 times more yield.
Likewise, lenders will be able to benefit from APYs above 24%.
Thus, the Hashstack protocol brings strong innovation with undercollateralized loans.
For debit, the protocol will support BTC, USDT, USDC, and BNB. Of course, the platform will also launch its own native HASH governance token from Hashstack.
In short, it's a great novelty and now we need to know if it will hold up in the long term. We have no doubt that the platform will attract numerous users…
- Discover the protocol Hashstack.finance
- Read the article on the best crypto lending and borrowing sites
Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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