HiFi – the latest rebranding of the unique mainframe decentralized application platform that focuses on decentralized finance – today announced the launch of a DeFi fixed income loan platform.
“Fixed income loans are an important milestone for DeFi,” said Doug Leonard, HiFi CEO, in a press release. “Investors and traders need less volatile options so that they can plan their finances in advance, make their expenses predictable, and secure investments with confidence.”
The launch is scheduled for 17:00 UTC.
With a loan product, HiFi enters a market with tough competition. Aave and Cream dominate for a total of nearly $ 6 billion, and top 10 protocol SushiSwap is planning a loan offering, BentoBox, for later in the year.
HiFi aims to stand out as collateral by providing collateral with debt securities and income-generating instruments. Yield-oriented instruments enable the fixed interest rates advertised by HiFi and also enable the possibility of better mapping of finances and trading strategies, with tools such as the compensation of flash loan interest and yield swaps.
The announcement notes that the protocol will initially only offer “USDC Stablecoin Bonds with Wrapped Bitcoin (WBTC)”, but the platform will quickly include other types of collateral.
In a statement to Cointelegraph, the team mentioned Uniswap pool tokens – which charge trading fees but are notoriously difficult to use as collateral – and compound cTokens as main candidates.
“The first composability integration we’ll see is likely to be the use of Uniswap LP tokens or Compound cToken collateral. The team has early versions of these integrations at this point. “
There can also be a push for well-known users. In an explanatory video, Leonard found that corporate customers prefer the certainty of fixed interest rates. To that end, the team indicated that a number of developments may be ahead:
“We are keen to push the boundaries of what can and cannot be effective security as our protocol grows. I think you will see some of the most interesting stories in DeFi from our team over the next 12 months. It will be a lot of fun. “
HiFi’s MFT token was down 0.6% on the day to $ 0.0233 on a market cap of $ 217,000,000. After a run that took place after the announced rebranding, the token is up nearly 2,000% year over year.