The lending protocol continues to attract big investors with its low-interest rates and attractive collateral ratios giving it an edge over other competitor platforms.
Zero-Interest Crypto Lending
Hedge Labs announced a $3.7 million seed round led by Race Capital that included some other big investor names like Solana Ventures, DCM, Pantera, and SHIMA Capital to name a few.
The fundraise was announced via Twitter and Hedge is said to be publicly launching in the coming months, according to CoinDesk in a piece by Brandy Betz. Hedge has promoted itself as a one-of-a-kind lending protocol with its zero percent interest rate. Users deposit their Solana (SOL) and are able to borrow for a minimal fee (0.5%) the USH stablecoin interest-free at a minimum collateral ratio of 110%.
“Currently, there is a huge opportunity in the Solana ecosystem because 80% of Solana is not locked in DeFi,” Hedge co-founder and CEO Sebastian Grubb stated to CoinDesk. “With Hedge we’re really trying to upgrade the whole Solana DeFi ecosystem. We want to help users unlock more liquidity and better leverage their assets without having to exit their positions.”
The tagline on the Hedge website is to never sell your Solana tokens and that’s the pitch for investors and holders of SOL. By simply holding the token within their vault, users can borrow against their SOL using it as collateral and can choose to convert it into fiat or into another currency they wish to invest in. But what makes Hedge different? Other similar platforms can charge an annual interest rate on your debt and also have a higher collateral ratio requirement. Hedge has been forthcoming with the risks of a bug or an exploit by confirming that no formal security audit has been performed but that this is in the works as the protocol is scaled further.
What is Hedge Labs:
Hedge Labs offers a low collateral ratio and 0% interest loans on Solana. Loans are originated in the protocol’s stablecoin, USH. USH aims to be fully decentralized and have a soft 1 USD peg by offering the ability at all times to be redeemed for its underlying collateral.
Where to find Hedge Labs
Source : web3wire.news
