March 1, 2022 – Road Town, British Virgin Islands
Hot on the heels of launching its open protocol testnet, Hashstack Finance is thrilled to announce the closing of its $1 million seed funding round. The project will use the proceeds to develop the open protocol, attract top talent and grow the community.
The seed round saw participation from dozens of well-known investors including GHAF Capital Partners, Moonrock Capital, Kane and Rao Group, Nimrod Lehavi, MarketAcross and Chainridge Capital.
Vinay, founder of Hashstack Finance, said,
“Bringing under-collateralization to DeFi is critical to our mission at Hashstack. We are grateful to be backed by some of the smartest money in this ecosystem. The funds raised will be utilized toward talent acquisition, product development and growth.”
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. It means you can borrow up to $300 by providing only $100 as collateral. Of this, you can withdraw $70 (i.e., up to 70% collateral), while utilizing $230 as in-platform trading capital.
Kevin Kurian, general partner at Kane and Rao Group, said,
“Getting the maximum value out of your assets is essential in any market. Hashstack offers a solution that the market has not really seen before. We backed Vinay and his team at Hashstack with our capital to bring forward these new ideas.”
While the current DeFi lending protocols require over-collateralization, Hashstack is proud to give borrowers a glimpse into the future of DeFi lending. Whether you need to borrow for personal cash needs, leveraged investments in IDOs or trading capital, open protocol offers instant under-collateralized loans.
Nimrod Lehavi, CEO of Simplex, said,
“DeFi lending is at its inflection point. Hashstack smartly circumvents the need for on-chain credit score in order to facilitate under-collateralized loans. Hashstack has the potential to be one of the pioneers of layer three enabler solutions.”
To accelerate the growth of DeFi lending, Hashstack’s open protocol eliminates inefficiencies from the DeFi ecosystem through a three-pronged approach.
- Clear compartmentalization of APY and APR of deposits/loans with that of their minimum commitment period (MCP).
- Effective asset utilization through diversification of available assets via lending and providing trading capital
- Under-collateralized loans
Feras El Sadek of GHAF Capital Partners said,
“All our companies, including Hashstack, hold a great value to us. We at GHAF Capital are very excited to back Hashstack as we view them as an essential cog in the crypto ecosystemsolving major issues to allow the blockchain space to go mainstream, making crypto accessible and affordable to billions of people all over the world.
I personally admire how they push to add value to the whole system of the blockchain world. We [at] GHAF Capital Partners hold similar values in that sense. We always push startups to do more and help support their growth continuously. It’s great to see others be a part of our company’s mission.”
Hashstack integrates with other DeFi solutions such as PancakeSwap to facilitate in-app market swaps and to improve loan utilization. It means the borrowers can swap the borrowed tokens into other primary coins or secondary coins without the need to switch the DApp. Open protocol also bridges assets from other chains such as Ethereum and Avalanche C-chain as an expansion of the primary markets.
To begin with, the open protocol supports only major liquid coins such as BTC, USDT, USDC, BNB and Hashstack’s native governance token HASH.
Hashstack Finance is a DeFi platform whose open protocol aims to disrupt the DeFi lending market by offering under-collateralized loans. It addresses the need of lacking under-collateralized lending avenues for retail cryptocurrency investors by enabling loans at up to three times collateral to serve the personal financial needs and trading capital requirements. Users can secure under-collateralized loans to avoid having to sell their long-term holdings to meet their short-term cash needs.
Vinay, founder of Hashstack Finance