Hashstack V1 public testnet is here

Hashstack
3 min readJul 19, 2023

We are thrilled to announce the release of Hashstack’s v1 public testnet. This major version upgrade is designed & developed to simplify Hashstack’s core value proposition — i.e. improving capital access through permissionless loans. It is a result from many months of iterations based on community feedback & the ever-evolving market dynamics.

Public testnet(access link): testnet.hashstack.finance

Quick primer on v1

Through Hashstack’s v1, anyone can borrow up to 500% of their collateral as debt to supercharge their trading needs. Based on a few parameters, such as the account’s relationship with the protocol, Protocol’s debt exposure for that particular market, effective asset flow rate of the collateral & the debt markets, the borrow power of the borrower is determined. Hashstack serves as a custodian of the debt position, while the borrower is given the right to spend across a carefully-curated pool of Starknet native dapps.

Borrowers can use this debt to provide liquidity on amms, swap, and stake. 100% of the profits earned in this process belong to the borrower.

This transition between V0.10 to V1.0 is based on the in-app user behaviour; i.e. over 97% of the borrowers utilised the debt as trading capital only, intending to liquidity mine potential future tokens on Starknet native dapps.

The developer docs are updated to reflect v1, and can be found here: https://docs.hashstack.finance/developers/

Breaking changes

  1. Re-designed user experience.
  2. We switched to tokenised supply & debt positions in the r & d denominations. e.g., USDT supply returns rUSDT(representational USDT) to the liquidity provider. USDT debt mints dUSDT(debt representation of the USDT). The supply & borrow apr value accrues in these denominations. The switch to tokenised supply & borrow positions eliminated the need to monitor accrued apr on individual accounts, reducing operational overload.
  3. Interest rate model: We switched from DIAL(Dynamic Interest rate Algorithm) to a tweak of Aave’s yield curve model. The optimisation involved improving supply-side incentives as the Ur(Utilisation rate) increases.
  4. Liquidity provision: Borrowers can provide liquidity to liquidity pools on amm; earn up tokens.
  5. Zero repay: Allows a borrower to self-liquidate a debt to partially secure the collateral from entering liquidation.

What’s unchanged?

  1. Primary markets: USDT, USDC, DAI, wETH, wBTC.
  2. Primary markets: Crypto assets a user can supply/borrow.
  3. Dual liquidation module: Hashstack acts as a fall-back liquidator if the liquidators fail to liquidate a bad debt while the discount drops by 25%.
  4. Do not support: add-on loans(looping), flash loans.
  5. PermissibleCDR [Expanded — permissible collateral-to-debt ratio] function autonomously determines the borrowing power of each account at a given time.

Metrics — Mainnet alpha

  1. Mainnet alpha access enabled to 100 accounts, with strict supply & borrow caps implemented.
  2. ~US $10,000 total value locked.
  3. 2,000+ on-chain transactions, with 23% belonging to debt requests.
  4. 210% average LTV. Highest avg live on any lending app on Starknet.
  5. 27% average asset utilisation. Highest for any lending app on Starknet.

About Hashstack

Hashstack provides permissionless under-collateralized loans to supercharge your trading needs.

Website: hashstack.finance

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Hashstack

A non-custodial money market protocol enabling secure under-collateralised loans on the blockchain. Website- https://hashstack.finance