Hifi Finance

Founded by Mick Hagen, Mainframe initially developed censorship-resistant communications and the Onyx messaging application. In 2018, it moved from London to Lehi, Utah, and supported digital-rights and human-rights organizations through Proof of Heart.⁠[1]

In February 2021, Mainframe launched a fixed-rate lending application under the HiFi name, initially accepting WBTC collateral for USDC borrowing. Doug Leonard was chief executive.⁠[2]

In a 2021 interview, Leonard described a pivot into decentralized finance after the earlier decentralized chat product failed to gain expected traction. The project also provided Korean-language web and social channels.⁠[3]

On January 12, BinanceBinanceBinance is a global digital asset trading and multi-asset financial platform launched in 2017 and co-founded by Changpeng Zhao and Yi He. Its business has expanded from spot trading to derivatives, wallets, payments, a public blockchain ecosystem, market data, traditional securities, and artificial intelligence interfaces; its history also includes security incidents, regulatory enforcement across multiple jurisdictions, a 2023 U.S. criminal settlement, and subsequent compliance restructuring.Open the full entry announced completion of the MFT-to-HIFI token swap at 1 MFT for 0.01 HIFI and opened deposits and withdrawals for the replacement token. The migration included a redenomination.⁠[4]

On June 27, Hifi introduced a proposed 1952 Volkswagen Type 2 DeLuxe Microbus collateral asset with a professional appraisal of $650,000. That figure was an appraisal; legal agreements and the governance proposal were still pending.⁠[5]

HIP 6 proposed allocating 20 million HIFI over ten months in exchange for USDC to build protocol-owned liquidity, with a refund option after one year. It funded protocol liquidity rather than corporate equity.⁠[6]

On December 3, the team stated that HIP 6 had secured over $13.5 million in liquidity. HIP 14 proposed reallocating returned HIFI under the original terms without minting new tokens; the announcement presented a proposal awaiting a vote.⁠[7]

The v3 whitepaper by Doug Leonard and Ricky Stamton proposed the HFD stablecoin, a shared liquidity module and isolated lending markets. Rates would be fixed when positions opened within governance-defined ranges. The document described a design proposal.⁠[8]

HIP 16 proposed removing SHEETp collateral support, moving PooledNFT to withdrawals only and establishing an asset-disposal plan for a possible wind-down. It was a governance proposal.⁠[9]

HIP 17 proposed a market maturing March 26, 2027, continued ETH and existing RWA support, and burning 25 million HIFI minted under HIP 15. The team stated that the baseline plan had been in operation for months.⁠[10]

On October 29, the team acknowledged loss of protocol and token control, initially estimating losses near $20,000. DAO exchange liquidity was withdrawn. New lending stopped; the team took over existing RWA debt, expecting repayment by March 26, 2027.⁠[11]

The next day, the team redirected the application URL and said the attacker could continue upgrading the Balance Sheet contract. Listed DSProxies held no WETH then; future deposits could create exposure.⁠[12]

The earlier protocol represented maturing debt with hTokens: borrowers minted them against excess collateral, while lenders bought at a discount and redeemed at maturity. Separate maturities had distinct markets whose prices implied interest rates. This preceded the v3 proposal.⁠[13]

Historical governance documentation used a Governor Bravo-derived framework for collateral, borrowing limits and Balance Sheet upgrades. Pausing retained withdrawals.⁠[14]

Under its TUNAA agreement, Hifi DAO adopted a Delaware unincorporated nonprofit association structure for protocol governance. This was its published organizational description.⁠[15]

Under the RWA model, lending partners financed end borrowers while the protocol recorded debt and collateral tokens. Default required contractual enforcement against physical assets by the partner; smart contracts could not independently sell cars or property. Proceeds covered costs and debt first.⁠[16]

Security documentation described ChainlinkChainlink (LINK)Chainlink is a decentralized oracle and cross-chain computing platform co-founded by Sergey Nazarov and Steve Ellis. LINK supports network incentives and payments. From its 2017 whitepaper and 2019 Ethereum mainnet launch, the protocol expanded into data feeds, Proof of Reserve, Automation, VRF, CCIP, staking and the Chainlink Runtime Environment.Open the full entry price feeds for collateral valuation and discounted collateral as an incentive for third-party liquidation. These lending-risk controls did not establish immunity from governance-control risks.⁠[17]

Hifi LabsHifi LabsHifi Labs is the core development and services team in the Hifi Finance ecosystem, employed by Mainframe Group, Inc.Open the full entry developed the protocol.⁠[18]