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Information about "Hifi Finance"
What is Hifi (HIFI)?
Hifi is a decentralized finance (DeFi) platform that facilitates lending and borrowing of cryptocurrencies with fixed interest rates.
The system is built around decentralized interest rate markets that have specific maturity dates. Hifi operates using an Automated Market Maker (AMM) model where users contribute tokens to "liquidity pools." An algorithm then determines the interest rate based on the dynamics of supply and demand.
Participants can add liquidity, or choose to borrow or lend within any available market. Borrowers pay a predetermined interest rate to lenders without the need for negotiations on terms such as maturity, rate, or collateral. By contributing tokens to liquidity pools, users can earn rewards while enabling peer-to-peer lending and borrowing.
Hifi Governance is the community-driven approach to overseeing the Lending Protocol. The HIFI token is an ERC-20 token that allows holders to delegate their voting rights to any address, including their own. The voting power of a delegate is automatically updated with changes in the token balance of the owner. Through Hifi Governance, the community can propose, vote on, and implement changes using the administrative functions of the Hifi Protocol. Proposals can adjust system parameters, introduce new markets, add different collateral types, or allocate resources to specific initiatives.
Hifi initially launched as Mainframe in November 2017. Mainframe started as a decentralized communications framework for Web3 but shifted focus to Decentralized Finance and rebranded to Hifi in early 2020.
The system is built around decentralized interest rate markets that have specific maturity dates. Hifi operates using an Automated Market Maker (AMM) model where users contribute tokens to "liquidity pools." An algorithm then determines the interest rate based on the dynamics of supply and demand.
Participants can add liquidity, or choose to borrow or lend within any available market. Borrowers pay a predetermined interest rate to lenders without the need for negotiations on terms such as maturity, rate, or collateral. By contributing tokens to liquidity pools, users can earn rewards while enabling peer-to-peer lending and borrowing.
Hifi Governance is the community-driven approach to overseeing the Lending Protocol. The HIFI token is an ERC-20 token that allows holders to delegate their voting rights to any address, including their own. The voting power of a delegate is automatically updated with changes in the token balance of the owner. Through Hifi Governance, the community can propose, vote on, and implement changes using the administrative functions of the Hifi Protocol. Proposals can adjust system parameters, introduce new markets, add different collateral types, or allocate resources to specific initiatives.
Hifi initially launched as Mainframe in November 2017. Mainframe started as a decentralized communications framework for Web3 but shifted focus to Decentralized Finance and rebranded to Hifi in early 2020.
Who are the founders of Hifi?
Hifi was established by Mick Hagen, an early pioneer in blockchain technology. In early 2020, Hagen stepped down and Doug Leonard took over. Leonard, who is an enthusiastic NFT collector, is noted for financing his family's mini-van through early crypto protocols. He has been instrumental in leading Hifi's transition into decentralized finance.
What makes Hifi unique?
Hifi offers a higher level of predictability than other protocols, thanks to its fixed interest rate markets. Borrowers know exactly what they will pay for a loan, and lenders know their earnings before they lend any funds. This certainty provides more predictable outcomes in decentralized finance compared to protocols with variable interest rates.
How many HIFI coins are in circulation?
The total supply of HIFI coins is 126.25 million. Out of this, 101.25 million (80%) are currently in circulation, with another 25 million set to be distributed over two years to Hifi Labs.
The rate at which HIFI is released can be modified over time, as the community has the power to adjust it through proposals in community governance.
The rate at which HIFI is released can be modified over time, as the community has the power to adjust it through proposals in community governance.
How is the Hifi network secured?
Hifi operates on smart contracts that allow users to deposit collateral and create hTokens, a bond-like asset representing an on-chain obligation that is settled on a future date.
Lenders buy hTokens at a reduced price and redeem them at full face value when they mature. The protocol enforces a collateralization factor, ensuring all debts are over-collateralized. If collateral drops below the required level, it is sold to liquidators at a discount, partially repaying the loan and returning the remaining collateral to an acceptable level.
This system, managed by smart contracts, ensures borrowers keep adequate collateral, offers a safety net for lenders, and provides opportunities for liquidators to earn.
Lenders buy hTokens at a reduced price and redeem them at full face value when they mature. The protocol enforces a collateralization factor, ensuring all debts are over-collateralized. If collateral drops below the required level, it is sold to liquidators at a discount, partially repaying the loan and returning the remaining collateral to an acceptable level.
This system, managed by smart contracts, ensures borrowers keep adequate collateral, offers a safety net for lenders, and provides opportunities for liquidators to earn.
Where Can I Buy Hifi?
Hifi can be traded on an increasing number of exchanges, with pairs available in both cryptocurrencies and stablecoins.
As of February 2021, Binance provides the highest liquidity, while Bittrex has a Bitcoin (BTC) pair, and Upbit features a KRW pair. For a decentralized option, Hifi is also available on Uniswap V2.
As of February 2021, Binance provides the highest liquidity, while Bittrex has a Bitcoin (BTC) pair, and Upbit features a KRW pair. For a decentralized option, Hifi is also available on Uniswap V2.
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