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Hifi Finance

Hifi Finance Previously Mainframe Lending Protocol allows anyone to borrow against their Crypto. It is a fixed-rate, fixed-term lending protocol powered by Zero-coupon bond, as defined in Dan Robinson and Allan Niemerg's paper. The protocol is implemented in a system of non-upgradeable Smart contract on the Ethereum Blockchain.[1]   

Founders of Hifi finance

Hifi (formerly Mainframe) was founded by Mick Hagen in 2013. Through 2018 and 2019 the team released a Decentralized chat application and a Decentralized Operating system, but both products failed to gain significant traction.[2]

In 2019 the team pivoted into Defi and started working on a Decentralized lending and borrowing platform. Mick handed over the role of CEO to Doug Leonard in early 2020. Doug had been working with the company since 2018 with a background in software development and IT security.[3]

Doug rebuilt the team, acquiring the Token streaming protocol Sablier, and hiring its founder and developer Paul Razvan Berg as the lead engineer. In February 2021 Mainframe officially rebranded to Hifi.[2] 

Overview

Hifi is a Lending Protocol that allows anyone to borrow against their Crypto. Hifi uses a bond-like instrument, representing an on-chain obligation that settles on a specific future date. Buying and selling the tokenized debt enables fixed-rate, fixed term lending and borrowing — something much needed in Decentralized finance today. It is anticipated that a Ticker symbol change will occur alongside future iterations on the Hifi Lending Protocol.[1]

Hifi Finance is a unique project because, unlike most cryptocurrencies out there, it does not aim to completely replace the way finance is done at present. On the contrary, through the MFT token, Mainframe seeks to utilize the potential of Blockchain technology for personal data security and privacy.[3]

One of the Mainframe network’s features is that it employs several different sub-protocols with enhanced encryption services and functions like Dark routing. This ensures that privacy is safeguarded and communications going through the network are protected. The Mainframe platform allows users to safely and securely send files, create Decentralized application (DApp) and store data on the Blockchain.[1]

Uses of Hifi finance

  • Borrow: Lock collateral in a vault to mint fixed-rate, fixed-term debt tokens. These debt tokens can be swapped for instant liquidity allowing users to leverage long, yield farm, or pursue other strategic trades without selling their collateral tokens.

  • Lend: Buy fixed-rate, fixed-term debt tokens for a discount. When the term expires they can be redeemed for face value, earning lenders a predictable return on their investment.

  • Provide Liquidity: Earn trading fees by providing liquidity between debt tokens and Stablecoin on an Automated Market Maker (AMM).[2]

How Is the Hifi Finance Network Secured?

The Hifi Finance protocol is based on Ethereum, and the Mainframe coin is an ERC20 token, which allows you to store it in Ethereum (ETH) wallets. Considering its Ethereum roots, Mainframe is secured by the Proof-of-stake PoS model.[3]

Proof-of-stake protocols try to battle the vast power consumption required by Proof-of-work system PoW systems by placing greater importance on the number of coins held by miners rather than their mining capacity. PoS models are becoming increasingly popular as they require less electrical power and are easily scalable.[2]

Hifi’s Ethereum compatibility also makes it an excellent environment for the development of Dapps.[1]

Hifi Finance token (MFT)

The Hifi Token is an ERC20 asset that empowers community governance of the Mainframe Lending Protocol. MFT aligns and balances incentives within the system and is critical for the sustainability of protocol upgrades. Throughout the Lending Protocol, MFT may be utilized to vote on governance proposals, unlock discounts, achieve greater capital efficiency, increase protocol rewards, and access additional leverage.[1]

MFT may be staked, streamed, or burned. It is anticipated that staking MFT will be a necessary part of our Delegate Governance System and will be the subject of a future publication. Managing protocol incentives by Governance is expected to be iterative in nature. Appropriately, questions about how much streaming or burning will be required and where each will be used will be managed by Governance. [3]

Use of the MFT Token in Hifi Governance:

The MFT token—the governance token of the Mainframe Lending Protocol—allows those who hold it to vote on changes to the lending protocol. Note that anyone, not only MFT holders, can submit proposals for an MFT vote.

MFT holders will be able to vote on the following:

• Adding new collateral asset types.

• Add or change the Risk Parameters for collateral asset types.

• Modify Incentive Parameters.

• Modify the Price Feeds.

• Modify Emergency Shutdown Procedure.

• Trigger Emergency Shutdown.

• Upgrade the system. 

Where Users can Buy MFT token

MFT coins are relatively accessible for purchase, being ERC20 tokens. One of your solid choices is Binance, which has the second-largest trade volume of MFT coins: $2,074,002.[2]

Another option to purchase MFT coins is Upbit (cryptocurrency exchange). The exchange has an MFT/KRW trading volume of $2,196,885. Of course, it is crucial to note that investing in Cryptocurrency can be risky, as coin prices are incredibly volatile.[1] 

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Hifi Finance

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