Hashstack

What is Hashstack?

Hashstack is a DeFi lending protocol on Starknet that provides permissionless under-collateralized loans, allowing borrowers to unlock up to 500% of their collateral for trading and yield farming. DeFi retail lending today is largely over-collateralized, requiring the borrower to provide collateral that exceeds the loan by an average of 42% in value. This creates two problems: (1.) Unless there is an absolute need, a borrower wouldn't opt for a loan that is less than the collateral they provide; (2.) Inconsistently deployed assets create volatility and sharp variation between supply and borrow APR, disincentivizing borrowers even further. Hashstack's loans are designed to meet personal and trading capital needs without added risks to liquidity providers, borrowers, or the protocol itself. As a wallet's relationship with the protocol nurtures, its ability to borrow increases. This debt can be spent in two ways: (1.) Utilize the entirety of the debt as trading capital; (2.) Withdraw the debt equating up to 70% of the provided collateral into their personal wallet for personal needs, while utilizing the remaining debt as trading capital. In both options, the protocol retains the ownership of the debt while the borrower is given the right to spend.