NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

HashStack Addresses DeFi Loan Collateralization Inefficiences And Improves Asset Utilization

NewsBTC
NewsBTC
3 years ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Hashstack aims to disrupt and improve the appeal of decentralized borrowing and lending. Users can access under-collateralized loans through its Open Protocol at a 1:3 collateral-to-loan ratio. It is a welcome change for the broader DeFi industry, as current collateralization rates remain too high.

Adjusting Loan Collateralization In DeFi

In traditional finance, one can obtain a loan if they have a fraction of the borrowed amount to put up as collateral. One would expect the same to apply to decentralized finance, yet that is not the case. Instead, users often put up 150% – or more – of the amount they want to borrow. If one has more liquidity than is needed to borrow, it doesn’t make much sense to take out a loan.

Unfortunately, the high loan collateralization rates are a standard in decentralized finance. The use of volatile crypto assets warrants a “buffer” of sorts. Markets can turn around on a dime and will often turn bearish when people least expect it. That process devalues the collateral and loan ratio, forcing protocols to adopt a very cautious approach. Thankfully, things will improve soon through Open Protocol.

The new DeFi protocol, designed by the Hashstack team, will introduce new loan collateralization opportunities. Users have to put up one-third of the amount they want to borrow, introducing undercollateralized loans to a global audience. Moreover, users can withdraw 70% of their collateral after acquiring a loan and use the remaining funds as working capital on the platform.

Moreover, Hashstack introduces a new mechanism for the eternal scalability of storage and logic of smart contracts. That will catalyze the utilization of the trading capital locked within the Open Protocol. The mechanism will be submitted as an Ethereum Improvement Proposal – EIP-9000 – and foster secure and upgradeable smart contract deployment. A welcome change for DeFi, as Hashstack can integrate an unlimited number of dApps with Open Protocol without making any major changes to existing projects.

Open Protocol Public Testnet Launch

The solution by Hashstack is currently live on the public testnet. Users can experiment with Open Protocol and provide feedback to enhance the appeal of this new protocol. The team has worked hard on an improved user interface, combining base interest rates summed with an algorithmic determinant kept constant for up to seven days, and improved transparency.

Hashstack Finance Founder Vinay Kumar comments:

“Our public testnet has attracted over US$5 million in total value locked (TVL) immediately after going live. The public testnet release marks a significant accomplishment in Hashstack’s roadmap as we prepare to launch the Open Protocol mainnet later in the second quarter of 2022.”

The new loan collateralization ratio maintained by open Protocol hints at a bright future for decentralized finance. However, the industry still suffers from many inefficiencies that need to be resolved. Open Protocol addresses some of those pain points, including enhancing effective asset utilization and compartmentalizing APY and APR.

It will be interesting to see which Dapps integrate with Hashstack and Open Protocol. PancakeSwap has been confirmed, and will improve loan utilization as borrowers can swap borrowed assets for any other crypto asset within the same interface. For now, Open Protocol focuses on BTC, SUDT, USDC, BNB, and HASH, with more tokens to be added in the future.

 

Tweet123Share196ShareSend
NewsBTC
NewsBTC

NewsBTC

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Top Launchpads Powering Web3’s Most Anticipated Token Sales

The crypto landscape continues to evolve with new developments, ranging from more sophisticated yield aggregators and tokenized securities to AI...

NewsBTC 5 days ago

$FUN Records 62.4% Price Rise in 24 Hours! Still Gaining on Binance

$FUN (FUNToken) records an exponential 62.4% rise in 24 hours amid new releases scheduled for later this year.  Highlights  FUNToken...

News BTC 1 week ago

FUNToken’s Current Rally Mirrors Past Bull Runs, Patience Could Pay Off Big

Crypto markets have once again entered a volatile phase, but one project is attracting focused attention: The FUN Token. Amid...

News BTC 1 week ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Celebrating a Milestone: UXLINK Marks First TGE Anniversary and Three Years of Innovation, One-on-One with Rolland Saf, CEO of UXLINK

News BTC 20 hours ago

Top 5 Crypto PR Agencies to Elevate Your Project in 2025

NewsBTC 21 hours ago

Interview with Mythical Games Head of Communications Nate Nesbitt

NewsBTC 4 days ago

Premium Sponsors

Press Releases

  • Ethereum Enthusiasts Easily Earn a Stable Daily Income of...

    9 hours ago
  • Hledáte nejlepší kryptoměny k nákupu v roce 2025

    Hledáte nejlepší kryptoměny k nákupu v roce 2025? Tady...

    11 hours ago
  • Cauți cele mai bune criptomonede de cumpărat în 2025?...

    12 hours ago
  • Tražite najbolje kriptovalute za kupnju u 2025. 4 top izbora za vaš portfelj

    Tražite najbolje kriptovalute za kupnju u 2025.? 4 top...

    12 hours ago
  • 今が狙い目の割安アルトコイン特集|注目すべき銘柄をチェック!

    ...

    16 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.