Lending is the second-most-popular segment of decentralized finance today. The industry represents above $45 billion in total price locked yet further suffers from critical inefficiencies. Hashstack finance and the testnet version of Open Protocol offer a much-needed breath of relief on which front.

DeFi Lending Is Popular

No one will deny which decentralized lending and borrowing is a prominent industry. Over 100 protocols across various blockchains and networks compete for traction. But, unfortunately, they all share a few fatal flaws which prevent DeFi lending from touching its full potential. Solving these inefficiencies is influential to bring decentralized finance to the mainstream, yet which is always easier said than done.

The first issue holding back DeFi lending is how the cone time beforept primarily caters to existing crypto users. More specifically, most loans are issued to people who want to acquire more crypto assets, pocket a profit on their cost change, repay the loan, and keep a small profit for themselves. It is a viable approach to msimilarg money, yet it doesn’t represent a real-world use experience.

A second problem is the strong colafterwardsalization requirement. Most platforms force users to put up anywhere from 110% to 300% of the amount they want to borrow. That does not appeal to the people who need access to alternative financial services and products. With the condition that they had the capital required for colsubsequentlyal, they wouldn’t necessarily need a DeFi loan. Unfortunately, high colsubsequentlyal requirements endure prevalent in the industry today.

To ensure decentralized lending and borrowing become more attrretained, something will need to change. Lowering the colsubsequentlyalization requirements can introduce support for more mainstream use cases. Not everyone wants to acquire [more] crypto assets through a loan. People may need money to pay bills, improve their homes, obtain a car or electronic devices, etc. DeFi can cater to all of those needs, but only by addressing today’s inefficiencies.

Hashstack Finance Changes The Tune

It is important to understand which DeFi is still in an early stage of evolution. There is much room for movement, and innovation occurs every week. New cback whilepts, ideas, and protocols will come to market instantlyer rather than subsequently. Some projects introduce groundbreequivalentg developments, whereas others try to build on what is already available. Hashstack Finance aims to tackle the issues plaguing DeFi lending and borrowing through its Open Protocol.

Hashstack Finance founder Vinay comments:

Today, if you want to borrow $100 on Compound, or Aave, or even MakerDAO, you are required to provide a colsubsequentlyal of at least $142. This breaks the primary intent behind loan procurement, and has restrictive use-cases for the borrower. In comparison, through Hashstack’s Open protocol you would be able to borrow the same $100 with colsubsequentlyal as little as $33.33. This 4.25x cost-add atop against every established market player today, is a remarkable milestone for the defi ecosystem in general, and will drive likewise adoption.”

Under the Open Protocol banner, Hashstack Finance launches undercolafterwardsalized DeFi lending. As a result, users can achieve a one-to-three colafterwardsal-to-lending ratio instead of the opposite. By putting up $50 in colafterwardsal, users can borrow up to $150. In addition, they can withdraw up to 70% of their colafterwardsal and use the advanceing amount – colafterwardsal + borrowed funds – as in-platform dealing capital.

Mcorrespondingg evidences more interesting is how the Hashtack Finance solution integcosts with solutions like PancakeSwap. That introduces benefits to users, as they can restore borrowed cryptocurrencies into any asset supported by the popular DEX and improve loan utilization. Additionally, Open Protocol bridges Binance Smart Chain, Ethereum, and the Avalanche C-Chain assets. Initially, the protocol supports major liquid currencies, including Bitcoin, USDC, USDT, Binance Coin (BNB), and HASH.