Article Summary, Automatically Generated By AI
About Hifi Finance
-
What is Hifi (HIFI)?
: Decentralized finance protocol for lending and borrowing crypto at a fixed interest rate. -
Hifi Governance
: Community-organized process for managing the Lending Protocol using HIFI ERC-20 tokens. -
Founders
: Mick Hagen (founded as Mainframe in 2017) and Doug Leonard (led rebrand to Hifi in 2020). -
Unique feature
: Fixed interest rate markets provide predictability for borrowers and lenders. -
HIFI coin circulation
: 126.25M total supply, 101.25M (80%) in circulation, 25M to
About Hifi Finance: Empowering DeFi Through Innovative Solutions
What is Hifi (HIFI)?
Hifi, denoted by the ticker symbol HIFI, is a decentralized finance (DeFi) protocol that operates on the Ethereum blockchain.
Hifi is a decentralized finance protocol that facilitates lending and borrowing of cryptocurrencies at a fixed interest rate, thereby providing a secure and reliable means of managing digital assets.
Hifi comprises decentralized interest rate markets, each with a predetermined maturity date. These markets operate on an Automated Market Maker model, wherein users contribute tokens to “liquidity pools,” and an algorithm dynamically adjusts the interest rate in response to shifting supply and demand dynamics.
Users can engage in various activities, including supplying liquidity, borrowing, or lending, across all active markets. In this process, borrowers are obligated to pay a fixed interest rate to lenders, eliminating the need for negotiations regarding terms such as maturity, interest rate, or collateral. By contributing tokens to liquidity pools, users can earn rewards while facilitating peer-to-peer lending and borrowing opportunities.
Hifi Governance is a decentralized, community-driven process that oversees the management of the Lending Protocol. The HIFI token, an ERC-20 token, empowers its holders to delegate their voting rights to any address, including their own, with the delegate’s voting power dynamically adjusting in response to changes in the owner’s token balance. Through Hifi Governance, the community is enabled to propose, vote on, and implement changes to the protocol via its administrative functions, encompassing a wide range of possibilities, from adjusting system parameters to supporting new markets, introducing novel collateral types, and allocating resources towards specific causes.
Hifi, initially launched as Mainframe in November 2017, underwent a significant transformation. Initially conceived as a decentralized communications layer for Web3, Mainframe pivoted to Decentralized Finance and subsequently rebranded as Hifi in early 2020.
The Visionaries Behind Hifi: Meet the Founders
Hifi was founded by Mick Hagen, a visionary pioneer in the realm of blockchain technology.
Hagen relinquished his role in early 2020, paving the way for Doug Leonard to assume the reins.
As an ardent collector of non-fungible tokens (NFTs), Leonard is renowned for his innovative spirit,
having utilized early crypto protocols to finance the purchase of his family’s mini-van.
Under Leonard’s leadership, Hifi has undergone a transformative rebranding and strategic pivot into the realm of decentralized finance.
What Sets Hifi Apart?
Hifi offers a heightened sense of predictability, distinguishing itself from similar protocols. This predictability stems from Hifi’s fixed interest rate markets, which provide borrowers with upfront certainty regarding the exact amount they will pay to borrow, and lenders with precise knowledge of their earnings prior to lending any funds. Consequently, users can expect more reliable outcomes in decentralized finance, setting Hifi apart from variable interest rate protocols.
The Circulating Supply of HIFI Coins: An Overview
The total supply of HIFI is capped at 126.25 million. Of this amount, 101.25 million (80%) are currently in circulation, while the remaining 25 million will be distributed over a two-year period to Hifi Labs.
The precise rate of HIFI emission is susceptible to fluctuations over time, as it is contingent upon community governance, wherein voters possess the authority to modify the emission rate by submitting and approving proposals.
The Security Architecture of the Hifi Network
Hifi is a protocol of smart contracts that enables trustless deposits of collateral, facilitating the minting of hTokens, a bond-like instrument that embodies an on-chain obligation, redeemable on a predetermined future date.
Lenders acquire hTokens at a discounted rate, with the option to redeem them at their full face value on a predetermined maturity date. The protocol ensures that all debt is perpetually over-collateralized by enforcing a stringent collateralization factor. Should the collateral value plummet below the designated maintenance threshold, it will be sold to liquidators at a discounted rate, thereby reducing the loan amount and reinstating an acceptable collateralization ratio.
This arrangement, facilitated by the ironclad guarantees of smart contracts, ensures that borrowers maintain their collateral levels, thereby providing a safeguard for lenders and creating a lucrative opportunity for liquidators.
Acquiring Mainframe Token (MFT): A Comprehensive Guide
MFT is now accessible for trading on an increasingly diverse range of exchanges, with cryptocurrency and stablecoin pairing options currently available for users.
As of February 2021, Binance boasts the largest liquidity pool, while Bittrex facilitates a Bitcoin (BTC) pairing, and Upbit offers a Korean won (KRW) pairing. Additionally, MFT can be acquired on Uniswap V2, providing a decentralized alternative.