Hashstack allows users to take under-collateralised loans. The loans can be spent on various DApps like AMMs, vaults, and DEXs, enabling you to increase your capital efficiency. The project broadly contains the following stakeholders:
We first discuss how the deposits and borrows are handled in the system. The system has a provision to spend the loan on pre-configured integrations, which we call Layer-3 (L3) Integrations. The loans given to users stay within Open protocol while allowing a part of it (70% of collateral value).
Users have the right to spend these loans-supported integrations. The profit or loss made through spending on these integrations is on the user, and Open shall recover the loan anytime by liquidating the collateral if the loan falls below a certain threshold.