What Is Hifi Finance

About Hifi Finance (MFT)

Hifi Finance, previously called Mainframe, is a lending protocol built on the Ethereum blockchain. It allows customers to lend and borrow assets similar to how they would through a bank, but without its actual interference.

MFT, the utility token of the system, is used for voting on proposals, staking, as well as for distributing incentives.

With Hifi Finance, users can:

1. Borrow assets with their crypto as collateral. They have to connect their wallets to the decentralized app, deposit collateral (for example, wrapped Bitcoin), and then borrow USDC against it.
2. Lend assets to earn an interest rate.
3. Act as liquidity providers and receive rewards for contributing to the system from trading fees.

The goal of the project is to give a better alternative to the traditional banking system, which takes money from the people who keep it in their savings accounts, gives out loans, and then keeps the difference in the interest rates.

In the case of Hifi finance, lenders purchase the tokenized version of the debt of borrowers with a discount and later cash it in for the full price. By eliminating the bank from the equation, Hifi Finance attempts to make the interest rates of loans more affordable and increase profit for lenders.

Where did Hifi Finance (MFT) come from?

The company was founded in 2017 by tech entrepreneur and investor Mick Hagen. At first, it was not connected to financial issues and dealt with other decentralized solutions. However, in 2019, there was a shift in the project’s policy towards Defi.

Later, in February 2021, Mainframe was renamed Hifi.At the moment, the company is planning to create an ecosystem. However, the lending protocol will still be at the center. For example, they are launching NFTs and new pieces of infrastructure.

What are the advantages of Hifi Finance (MFT)?

1. The project is using blockchain technology to create an alternative to the traditional banking system.
2. People have the opportunity to take out loans more affordably and lend their money with a more significant profit.
3. There is also a chance to earn additional rewards by staking the token.

What are the disadvantages of Hifi Finance (MFT)?

1. At the moment of writing this article, the choice of options was very limited. As such, only two coins (WETH and WBTC) could be used as collateral for borrowing, and there was just one option for both taking out a loan (with APY 2.57%) and lending assets (APY 2.32%).

How to buy Hifi Finance (MFT)?

If you are planning to buy MFT tokens, we suggest visiting the SimpleSwap homepage and following these instructions:

1. Say, you want to swap BTC for MFT. Select the currency you want to exchange (in our example, BTC) in the first drop-down list. Then enter the amount you want to swap.
2. Select MFT in the second drop-down list. You’ll see the estimated amount that you’ll get after the exchange.
3. Click the Exchange button.
4. Enter the Recipient's Address. MFT tokens will be sent. Be careful and make sure you use the correct address.
5. Create the exchange.
6. You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the BTC to MFT exchange.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.