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: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market
  • 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: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

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

FUNToken Can Reach $0.33 by 2026: What Telegram Engagement, Gaming Expansion, and Deflationary Mechanics Mean for the Future

As the Web3 gaming space matures, FUNToken ($FUN) has emerged as one of the few projects combining live adoption, transparent...

NewsBTC 4 days ago

Trailblazing Kohaku Wallet Sets New Standard For Cross-Chain Asset Transfers

The Ethereum Foundation is collaborating with Wonderland and the team behind Ambire Wallet to develop a prototype wallet that showcases...

News BTC 5 days ago

Bullish Wave: XDC Network’s $300M+ Staking Milestone Aligns with SEC’s PoS-Friendly Outlook

Over $300 million worth of XDC is now locked in staking, putting it among the top six proof-of-stake (PoS) blockchains...

NewsBTC 5 days 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

Institutional Crypto Crowdfunding Gains Momentum Among Top-100 Crypto Projects

PR Desk 2 days ago

How FUNToken’s Deflationary Model Is Fueling Its $0.10 Target to Get 10X Profit and Beyond

NewsBTC 3 days ago
WBT Marks

WBT Marks Three Years with Record Growth and Ongoing Utility Expansion

NewsBTC 2 days ago

Premium Sponsors

Press Releases

  • Join Mint Miner Cloud Mining™ – Earn $5,000 in...

    6 hours ago
  • BTC Policy Shift and XRP Regulatory Breakthrough: Quid...

    12 hours ago
  • CryptoMiningFirm Launches XRP Mining Contracts – Allowing...

    12 hours ago
  • ETHRANSACTION Launches XRP Cloud Mining App, Easily Earn...

    1 day ago
  • The Smart Investor’s Choice

    The Smart Investor’s Choice: Effortless High-Yield XRP...

    2 days ago

Newsletter

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.