What Is Hifi Finance (MFT)?
MFT token is the native token of Hifi Finance, which is a DeFi project. It mostly revolves around a lending protocol that allows users to lend and borrow crypto assets. Besides that, it features an NFT collection and a streaming protocol. Make sure to check out the Hifi Finance price chart that is featured above since it displays the current and the previous MFT price.
The Hifi Finance crypto project was previously known as Mainframe. However, in 2021, the project rebranded to Hifi. Even though the ticker symbol of the native token remained as it was before, it’s planned that in the future it might also be changed.
Getting back to the lending protocol, it provides users with fixed-rate and fixed-term lending and borrowing against their own crypto. Fixed-rate means that the Hifi lending protocol has fixed interest rates, which is not the case with other similar protocols, that usually have floating rates. Fixed-term means that there is a certain on-chain obligation set that will be settled at a specific time.
How does the whole lending/borrowing process work? Essentially, lenders have to purchase debt tokens. They do get a discount on these tokens though. The debt tokens are created by borrowers. They can mint them by locking their collateral in a vault. Borrowers can engage in various strategic trades without the need to sell their collateral tokens because they can exchange debt tokens for fast liquidity.
Additionally, apart from lending or borrowing, users can also become liquidity providers. They can provide liquidity to the pools of debt tokens and stablecoins. For doing that, liquidity providers receive trading fees as rewards.
Besides the lending protocol, Hifi also features the Sablier protocol, which is a streaming protocol. Users can create money streams by utilizing this Ethereum-based real-time financial protocol. In essence, it allows users to stream money or payments in real-time, in a manner akin to streaming a movie or a song.
Lastly, Hifi Finance offers an NFT collection called Pawn Bots. Though it’s not a usual NFT collection because it consists of 8,888 unique utility-based Bots that can be used as collateral. The Bots can be wrapped in a fungible layer on Hifi, this way becoming liquid assets.
The Founder of Hifi Finance
The Hifi Finance crypto project was founded in 2017 by Mick Hagen. He has a degree in computer science. Apart from founding Hifi Finance, he also founded Zinch.com, Undrip, Cluster Capital, and Hightop. Besides that, he was a seed investor in such projects as Andela, Degreed, Kalo, DICE, Origin Markets, Weav Music, and MyCrypto.
Hagen was the CEO of Hifi Finance until 2020. Since Hagen stepped out of the role, Doug Leonard became the CEO of Hifi Finance.
Use Cases of MFT Tokens
The Hifi Finance coins have three main use cases:
- Rewards token. MFT is used to reward those who contribute to the whole Hifi Finance ecosystem.
- Governance token. MFT tokens grant users voting rights that allow them to participate in the decision-making processes considering the further development of the project.
- Staking token. MFT tokens can be staked in order to secure the Hifi network and receive staking rewards.
Tokenomics of MFT
The max supply of MFT tokens is 10 billion. Thus, the Hifi Finance tokens are deflationary. This means that, once the circulating supply reaches the max supply, it’s likely that the MFT price might go up.
However, again, check out the Hifi Finance price chart before making any purchases. It's important to do that because the MFT price is volatile, which means that it could also decrease at any second since it's affected by the fluctuations of the whole crypto market.
