Hashstack Secures $1M in Seed Funding from Moonrock, GHAF Capital, and Others as It Brings Undercollateralized Loans to DeFi Space
March 1, 2022 – Road Town, British Virgin Islands
Shortly after launching its open protocol testnet, Hashstack Funding is pleased to announce the closing of its $1 million seed funding round. The project will use proceeds to develop the open protocol, attract top talent and grow the community.
Dozens of notable investors participated in the seed round, including GHAF Capital Partners, Moonrock Capital, Kane and Rao Group, Nimrod Lehavi, MarketAcross and Chainridge Capital.
Vinay, Founder of Hashstack Finance said:
“DeFi underfunding is critical to our mission at Hashstack. We’re grateful to be backed by some of the smartest funds in this ecosystem. Funds raised will be used for talent acquisition, product development and growth.”
Hashstack’s open protocol is the only autonomous lending solution in DeFi, enabling non-custodial, undercollateralised loans with collateral-to-loan ratios of up to 1:3. That means you can borrow up to $300 by just posting $100 as collateral. Of this, you can withdraw $70 (ie up to 70% collateral) while using $230 as in-platform trading capital.
Kevin Kurian, General Partner of Kane and Rao Group said:
“Getting maximum value from your assets is critical in any market. Hashstack offers a solution that the market hasn’t really seen yet. We have backed Vinay and his team at Hashstack with our capital to move these new ideas forward.”
While current DeFi lending protocols require over-collateralization, Hashstack is proud to bring borrowers a glimpse into the future of DeFi lending. Whether you need to borrow for your personal cash needs, leveraged investments in IDOs, or trading capital, the open protocol offers instant undercollateralized lending.
Nimrod Lehavi, CEO of Simplex said:
“DeFi lending is at its tipping point. Hashstack intelligently circumvents the need for on-chain credit scoring to enable undercollateralized lending. Hashstack has the potential to become one of the pioneers of Layer 3 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 split of APR and APR of deposits/loans with their minimum commitment period (MCP).
- Effective asset utilization by diversifying available assets through lending and providing trading capital
- Undersecured Loans
Feras El Sadek of GHAF Capital Partners said:
“All of our businesses, including Hashstack, are of great value to us. At GHAF Capital, we are very excited to support Hashstack as we see them as an essential cog in the crypto ecosystemSolving key issues to make the blockchain space mainstream and make crypto accessible and affordable for billions of people around the world.
I personally admire how they are pushing to add value to the whole system of the blockchain world. we [at] GHAF Capital Partners has similar values in this sense. We always push startups to do more and help to continuously support their growth. It’s great to see others becoming part of our company’s mission.”
Hashstack integrates with other DeFi solutions like PancakeSwap to facilitate in-app market swaps and improve credit utilization. This means that borrowers can exchange the borrowed tokens for other primary coins or secondary coins without having to switch DApps. The open protocol also bridges assets from other chains like Ethereum and Avalanche C-Chain as an extension of the primary markets.
First off, the open protocol only supports major liquid coins like 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 undercollateralised loans. It addresses the lack of under-collateralized lending opportunities for cryptocurrency retail investors by allowing loans with up to triple collateral to meet personal financial needs and trading capital needs. Users can secure undercollateralized loans to avoid having to sell their long-term holdings to meet their short-term liquidity needs.
Vinay, Founder of Hashstack Finance