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Use Cases

Undercollateralized loans and an easy-to-use lending facility are the USP of the Open protocol. By employing these functions, Hashstack provides several use cases for both lenders and borrowers -
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Hedge against Inflation

Users can earn up to 15% APR by lending their crypto assets to the Open protocol. This interest rate is much higher than the current inflation rate (January 2023) in the US i.e. 6.4% [source]. Therefore, users can lend their funds to the Open protocol and hedge their crypto assets against inflation.
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Shorting

Users can short an asset by using Open’s borrowing facility. For instance, assume Bob holds asset A, and he thinks asset B is going to loose value. So, Bob can borrow B from the protocol by submitting A as collateral and sell B in the open market. Unlike other platforms, Bob can borrow upto 3 times the collateral he deposits on Hashstack. If the price of B decreases, he can buy it again and repay the loan, thereby making a profit.
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Free-up Liquidity

Borrowers can use their loan amount on integrated platforms like Jediswap and Myswap. They can also withdraw up to 70% of their collateral amount ( deducted from the loan amount ). This way, they can stay invested in an asset and get liquidity off chain by paying a nominal charge.
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Passive Income

Users can earn lucrative incentives for lending their funds. If they're holding an asset and want to earn extra interest, they can lend it to Open protocol.
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Collateral Swapping

Users can use the loan to change the collateral of another loan on the same platform or another platform. Let’s say a person has already taken a loan of USDC by providing ETH as collateral. They can borrow USDC from the Open protocol and repay the loan. Now, they can easily take a new loan on the platform and submit the collateral of their choice.