back Back

Hifi Finance launches fixed-rate cryptocurrency lending protocol

By Pavithra R

February 18, 2021


Doug Leonard, CEO of HiFi

Hifi Finance (formerly Mainframe) has announced the launch of its fixed-rate cryptocurrency lending protocol, which enables anyone to create fungible debt obligations on the ethereum blockchain. 

Fixed-rate lending options allow investors to map out finances and trading strategies better. The HiFi protocol lowers collateral requirements for cryptocurrency lending and lifts the barriers preventing highly volatile assets as potential collateral pairs for crypto lending and borrowing applications. 

Initially, HiFi will offer USDC stablecoin borrowing with WBTC (wrapped Bitcoin) collateral, and the team plans to rapidly add products and services to expand lending markets and collateral pairs.

“Fixed-rate lending is an important milestone for DeFi. Investors and traders need less-volatile options so that they can plan finances, have predictability in expenses and hedge investments with certainty. With the surge in DeFi lending activity, protocols like Aave have attempted to offer stable rate lending. However, market volatility has diminished the value of these “stable” rates as borrowers incur fees to maintain a semi-fixed position,” said Doug Leonard, CEO of HiFi.

The cryptocurrency market is witnessing dramatic volatility, and developers struggle to balance between collateral demands and incentives for borrowers and lenders. Still, the decentralized finance (DeFi) markets have ballooned to a more than $40 bn evaluation. HiFi’s protocol automates incentives in a perpetual balancing act that optimizes value for all parties in the lending process.

HiFi works by automatically adjusting incentives between borrowers, lenders, and guarantors. Borrowers deposit collateral and mint tokens, representing a debt obligation. Lenders purchase the tokenized debt obligation and redeem them for face value at maturity. In the future, the protocol will allow guarantors to purchase collateral at a discount when collateral-accounts fail to satisfy the collateral requirement.

“HiFi opens up decentralized lending to a whole new world of diversified debt markets. Fixed-rate lending, especially for volatile assets, allows traders to take more aggressive positions and rewards all parties in the process with greater ROI,” said Leonard.

Previous Article

February 18, 2021

SIX to roll out new wealth management APIs on b.Link’s open banking platform

Read More
Next Article

February 18, 2021

Bud and ANZ NZ sign AI deal to build a more transparent lending process

Read More

IBSi Daily News Analysis


July 19, 2024

SMEs leverage cloud to gain competitive edge, study shows

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News


Cash Plus goes live with Profile Software’s Finuevo Suite

Read More


UniCredit to acquire Vodeno and Aion Bank in €370m deal

Read More

July 22, 2024

Mashreq forges strategic partnership with Profinch for global expansion

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q2 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
Get your copy now! IBSi Sales League Table 2024