HiFi — the current rebrand of onetime decentralized utility platform Mainframe, which is concentrated on decentralized finance — introduced in the present day the launch of a fixed-rate DeFi lending platform.
“Mounted-rate lending is a vital milestone for DeFi,” mentioned HiFi CEO Doug Leonard in a press launch. “Buyers and merchants want less-volatile choices in order that they will plan funds prematurely, have predictability in bills and hedge investments with certainty.”
The launch is scheduled for five:00 pm UTC.
With a lending product, HiFi is coming into right into a market that includes some stiff competitors. Aave and Cream dominate with almost $6 billion in complete worth locked between them, and high 10 protocol SushiSwap is planning a lending offering, BentoBox, for later in the year.
HiFi goals to face out with a give attention to tokenized debt and yield-bearing devices as collateral. Yield-bearing devices permit for the fastened charges HiFi advertises, along with enabling “the chance to raised map out funds and buying and selling methods” with instruments like flash mortgage fee rebalancing and yield swaps.
The announcement notes that whereas the protocol will initially solely supply “USDC stablecoin borrowing with WBTC (wrapped Bitcoin) collateral,” the platform will shortly onboard different collateral sorts.
In a press release to Cointelegraph, the staff talked about Uniswap pool tokens — which yield buying and selling charges however are a notoriously tricky asset to use as collateral — and Compound cTokens as chief candidates.
“Seemingly the primary composability integration we are going to see is with Uniswap LP tokens or Compound cToken collateral. The staff has early variations of those integrations constructed at this cut-off date.”
Likewise, there could also be a push for big-name customers out of the gate. In an explainer video, Leonard made word that enterprise purchasers choose the understanding of fastened charges. To this finish, the staff hinted that there could also be a spread of developments forthcoming:
“We’re explicitly , in the course of the progress section of our protocol, to push the boundaries of what can and can’t be an efficient collateral. I believe you will note among the most fascinating tales in DeFi come from our staff over the subsequent 12 months. It’s going to be numerous enjoyable.”
HiFi’s MFT token is down 0.6% on the day to $0.0233, with a market capitalization of $217,000,000. The token is up almost 2,000% on the 12 months, following a run that happened after the introduced rebrand.