Hifi Finance (HIFI)
Hifi Finance, formerly known as Mainframe Lending Protocol, is a decentralized lending platform that allows users to borrow against their cryptocurrency assets. The system operates on a fixed-rate, fixed-term lending model through the use of zero-coupon bonds. It is implemented via non-upgradeable smart contracts on the Ethereum blockchain.
Founders of Hifi finance
Hifi Finance was established by Mick Hagen in 2013. Initially, the team introduced a decentralized chat application and a decentralized operating system in 2018 and 2019, respectively. However, these products did not gain substantial traction. In 2019, the company shifted its focus to decentralized finance (DeFi) and began developing a decentralized lending and borrowing platform. Mick Hagen passed the CEO role to Doug Leonard in 2020. Doug, who had been with the company since 2018, has a background in software development and IT security. He revitalized the team, acquired the token streaming protocol Sablier, and appointed its founder, Paul Razvan Berg, as the lead engineer. In February 2021, Mainframe rebranded to Hifi Finance.
| Ticker | HIFI |
| Category | Decentralized Finance (DeFi) |
| Website | https://hifi.finance/ |
| @HifiFinance | |
| https://www.reddit.com/r/HifiFinance/ | |
| Contract Addresses | |
|---|---|
| ethereum | 0x4b...7e Copied! |
Overview
Hifi Finance offers a lending protocol that enables users to borrow against their cryptocurrency. The protocol uses a bond-like instrument, creating an on-chain obligation that matures on a specific future date. This allows for fixed-rate, fixed-term lending and borrowing, addressing a significant need in the decentralized finance sector. Hifi Finance does not intend to entirely replace traditional finance methods but rather aims to enhance data security and privacy through blockchain technology, utilizing the MFT token. The platform supports various sub-protocols with advanced encryption and features like dark routing to ensure privacy and protection of communications. Users can securely send files, create decentralized applications (DApps), and store data on the blockchain.
Uses of Hifi finance
Borrow: Users can lock collateral in a vault to mint fixed-rate, fixed-term debt tokens. These tokens can be exchanged for immediate liquidity, enabling strategic trades without selling collateral assets.
Lend: Purchase fixed-rate, fixed-term debt tokens at a discount and redeem them for face value upon term expiration, providing lenders a predictable return.
Provide liquidity: By offering liquidity between debt tokens and stablecoins on an Automated Market Maker (AMM), users can earn trading fees.
How the Hifi Finance network is secured
Hifi Finance operates on the Ethereum blockchain, and its token, MFT, is an ERC20 asset. The network's security is ensured by Ethereum's proof-of-stake (PoS) model, which prioritizes the number of coins held over mining capacity. PoS is efficient in power usage and scales easily, making it increasingly popular. Hifi's compatibility with Ethereum also facilitates the development of decentralized applications (DApps).
Hifi Finance token (MFT)
The MFT token is integral to the governance of the Mainframe Lending Protocol. It aligns incentives within the system and supports protocol upgrades. MFT holders can vote on governance proposals, unlock discounts, improve capital efficiency, enhance protocol rewards, and access additional leverage. MFT can be staked, streamed, or burned, and it is expected to play a crucial role in the Delegate Governance System.
Use of the MFT token in Hifi governance
The MFT token allows holders to participate in governance by voting on changes to the lending protocol. Proposals can be submitted by anyone, not just MFT holders. Voting topics include:
- Adding new collateral asset types.
- Modifying risk parameters for collateral.
- Adjusting incentive parameters.
- Changing price feeds.
- Managing emergency shutdown procedures.
- Triggering emergency shutdowns.
- Upgrading the system.
Where users can buy MFT token
As an ERC20 token, MFT is accessible for purchase on several exchanges. Binance is a prominent option, offering significant trade volume for MFT tokens. Another platform to consider is Upbit, which provides MFT trading against the Korean Won (KRW).