Hifi Finance is a decentralized lending protocol on the Ethereum blockchain that allows anyone to borrow against their digital assets at a fixed interest rate.
Hifi is made up of decentralized interest rate markets that mature on specific dates. Hifi markets use an Automated Market Maker model, in which users supply tokens to “liquidity pools” and an algorithm sets the interest rate based on supply and demand.
Hifi Token (HIFI) is the native utility token of Hifi Finance and gives owners the ability to participate in Hifi governance. The Hifi protocol is governed by HIFI token holders who are responsible for managing risk parameters and incentives to ensure the protocol’s smooth operation. Through governance, the community propose, vote on, and implement changes via the administrative functions of the Hifi Protocol.
The Hifi Finance platform consists of the following components:
Borrowing: Deposit 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.
Lending: Buy fixed-rate, fixed-term debt tokens for a discount. When the term expires they can be redeemed for face value, lenders earn a predictable return on their investment.
Providing Liquidity: Users earn trading fees by providing liquidity between debt tokens and stablecoins on an Automated Market Maker (AMM).
Hifi Token launched in Q4 2022. As of March 17, 2023, the total token supply of HIFI is 117,929,473, and the current circulating supply is 95,012,805 (80% of total supply). Learn more about token distribution here.