Yesterday, Hashstack published the updated whitpaper for its first product, Open protocol. This article offers a high-level summary of the concepts & processes laid out in the whitepaper(read here).
Before we begin, if this is your first time reading about Hashstack or Open protocol, suggest you to skim through Hashstack — A DeFi metaverse. It will set a decent foundation as to who we are, and what are we trying to achieve.
Here is the crunched version of the whitepaper for the laymen.
- Open protocol is the lending framework developed by Hashstack. On Open, you can borrow upto 3 times your collateral.
- Open is being built on BSC. Interoperability to Avax-c-chain, ETH, Polygon will be implemented in the near future.
- Similar to traditional financial institutions, Open maintains predictive interest rates for both the deposits & loans..
- On Open, deposits are classified into fixed & flexible deposits. Fixed deposits are further compartmentalised into 3 categories based on the minimum commitment period.
- Fixed deposits earn dividends(variable apy) in addition to the fixed apy.
- Flexible deposits earn a fixed 7.8% apy.
- Fixed loans also earn yield, as their collaterals are converted into fixed deposits with 2 week mcp.
- Fixed loans pay a 15% apr, while the flexible loans pay 18% apr.
- Borrowers can swap the borrowed assets into other non-base assets from within the Open app, through its AMM partners.
- Permissible withdrawal allows the borrower to withdraw a portion of the debt.
- Independent of the loan type, it can be repaid anytime.
- Debt is classified into 3 categories based on the cdr. The debt category is used to determine the liquidation price.
- When a collateral nears its liquidation price, an alert is sent to the borrower through in-app notification, or email(if connected). This is Liquidation call.
- On open, liquidations are automated.
- Pre-closure charges are applied on the fixed deposits and fixed loans, if a withdrawal is placed on deposits/collaterals during the mcp.
- Fees provide secondary revenue stream for Open protocol. This diversification enables Open to provide predictive apy & apr.
- A loan issuance fee of 0.15% is applied on all the loans.
- 0.15% is applied as loan closure charges for both the flexible loans as well as fixed loans(after the mcp).
- 0.51% is applied as the loan closure charges on the collateral release, if the release request is placed during the mcp.
- The interest rates, fees, and the charges are determined by the economist contract.
Read the whitepaper — https://hashstack.finance/papers/Open-protocol-v0.2.pdf
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We are looking to onboard amazing talent who can help us meet our goals quicker. Below are some of the open positions at Hashstack.
Qualified applicants can check out the detailed Job description at https://docs.hashstack.finance/openings.