Hashstack Finance reported that it had closed a $1 million funding round. CoinJournal learnt this from a press statement.
Investments in Open Protocol development and talent new talent
Hashstack will make use of the funds to attract talent and continue developing the Open Protocol.
GHAF Capital Partners is one of the most well-known investors who will participate in the round. Kane & Rao Group and Moonrock Capital are also part of the round. Nimrod Lehavi, Chainridge Capital and MarketAcross are other notable investors.
Vinay, founder Hashstack Finance commented:
Bringing under-collateralization to the DeFi is critical to our mission at Hashstack. We are grateful for the support of some of the most intelligent money in this community. The funds will be used to support talent acquisition, product development and growth.
Kevin Kurian, General Partner at Kane & Rao Group added:
In any market, it is crucial to get the most value from your assets. Hashstack presents a unique solution that the market has never seen before. These new ideas were brought forward by Vinay and his team at Hashstack, which we supported with capital.
Only products with a collateral-to-loan ratio of up to 1:13
Hashstack’s Open Protocol is the only autonomous lending solution in DeFi that enables non-custodial, under-collateralized loans up to 1:3 collateral-to-loan ratio.
This means that you can borrow up $600 with only $200 collateral. You can withdraw $140, i.e. You can withdraw up to 70% collateral and use $460 for in-platform trading.
Open Protocol offers under-collateralized loans instantly, no matter if you need it for trading capital or personal cash needs.
Nimrod Lehavi is the CEO of Simplex
The inflection point for DeFi lending is here. Hashstack cleverly bypasses the need to have an on-chain score credit score in order facilitate loans that are under-collateralized. Hashstack has the potential to be one of the pioneers of Layer – 3 enabler solutions.
Accelerating DeFi lending growth with a three-pronged approach
Open Protocol refers to the following approach to eliminate inefficiencies within the DeFi ecosystem
- Diversification of assets through lending and trading capital is key to effective asset utilization
- Clear separation of APY/APR of deposits/loans with their minimum commitment period (MCP).
- Loans with under-collateralized collateral
Feras El Sadek from GHAF Capital Partners stated:
We see Hashstack as a company that holds great value. Ghaf Capital is excited to support Hashstack because they are an integral part of the crypto ecosystem. They solve major problems to make crypto more mainstream and accessible to billions.
Personally, I admire their efforts to bring value to the entire blockchain system. Ghaf Capital Partners holds similar values. We push start-ups every day to be more productive and continue to support their growth. It’s great to see others be a part of our company’s mission.