Hashstack Rolls Out Public Testnet of Open Protocol, Raises $5M TVL

DeFi platform Hashstack Finance has raised over $5 million in total value locked (TVL) following the launch of the public testnet of its Open Protocol, which would allow borrowers to get the maximum value of their collaterals.

Following the rise in the platform’s TVL immediately after the public testnet went live, Hashstack Founder Vinay Kumar said that the “release marks a significant accomplishment in [their company’s] roadmap.”

According to the company, the Open protocol’s public testnet will improve the platform’s user interface and switch the protocol from a centralized backend to a decentralized blockchain to enhance transparency.

Furthermore, the development will boost the platform’s stability through a hybrid access model comprised of a base interest rate summed with an algorithmic determinant kept constant for three to seven days.

Launched earlier this year, Hashstack’s open protocol is said to be the only instant non-custodial undercollateralized DeFi lending protocol, enabling a collateral-to-loan ratio of up to 1:3. This means that borrowers can loan up to $300 with only $100 as collateral. Users can withdraw $70 while using $230 as in-platform trading capital.

As detailed above, Hashstack will employ a novel mechanism that allows the eternal scalability of storage and logic of smart contracts to capitalize on the $230 locked trading capital within the protocol. The company claims that this improvement passes EIP 2535, the current industry standard.

Hashstack revealed that its team will submit an Ethereum Improvement Proposal (EIP 9000) to secure and upgrade smart contract development. This allows the company to integrate numerous dapps with the Open Protocol without the need to change the smart contract addresses, expanding the ways users can utilize the amount locked within the protocol.

Kumar also revealed that the public testnet provides them an edge in preparing for the launch of its Open Protocol mainnet, which is slated for the second quarter of 2022.

Hashstack connects with other DeFi platforms such as Pancakeswap to facilitate in-app market swaps and improve loan utilization. Open Protocol also bridges assets from other chains such as Ethereum and Avalanche C-chain as an expansion of the primary markets.

The Open Protocol supports only major liquid coins, including BTC, USDT, USDC, BNB, and Hashstack’s native governance token, HASH.