Hashstack

Currently, DeFi retail lending is predominantly over-collateralized, necessitating that borrowers supply collateral that is, on average, 42% greater in value than the loan amount. This leads to two issues: (1.) A borrower typically wouldn’t choose a loan that is below the value of the collateral they offer, unless absolutely necessary; (2.) By compromising the borrower’s requirements, a standard DeFi lending product generates a downward spiral, causing a borrower to avoid taking a loan unless absolutely necessary. Assets that are deployed inconsistently cause volatility and significant fluctuations between supply and borrowing APR, forcing borrowers to offer higher APR on an already over-collateralized loan, which discourages them even more. Hashstack seeks to address these issues. It is a DeFi lending solution offering permissionless under-collateralized loans up to 300% of the borrower’s collateral. Their loans aim to address personal and trading capital requirements without introducing extra risks to liquidity providers, borrowers, or the protocol itself. As a wallet’s association with the protocol develops, its capacity to borrow up to 300% LTV grows. This debt can be utilized in two manners: (1.) Use the full amount of the debt for trading capital; (2.) Withdraw up to 70% of the debt against the collateral into a personal wallet for individual expenses, while using the rest of the debt as trading capital. In both scenarios, the protocol maintains ownership of the debt, while the borrower is granted the ability to spend. To facilitate efficient loan utilization as trading capital, Hashstack meticulously selects the dapps, supported assets, and activities.