Hashstack’s open protocol is the DeFi's only autonomous lending solution enabling under-collateralized loans upto 1:3 collateral-to-loan ratio.
This means, on Open, you can borrow upto $300 by providing only $100 as a collateral. Of this, you can withdraw $70(i.e. upto 70% collateral), while utilising $230 as in-platform trading capital.
In comparison, defi lending as of today is over collateralised. On average a borrower provides a minimum of 42% excess collateral against the loan they intend to borrow. This creates a systemic design flaw, which is addressed through Open protocol.
Open improves upon the known inefficiencies in the present day decentralized financial lending space through under-collateralized loans, effective asset utilisation, & compartmentalization of deposits & loans by minimum commitment periods(mcp). MCP enhances systemic predictability of liquidity inflow, outflow.
Open protocol plugs into various dapps to improve loan utilisation. As a first step, we have integrated Paraswap to facilitate in-app market swaps.
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