HIPO is a liquidity protocol that enables the use of derivative tokens, such as DEX LP tokens and staking tokens, as collateral for lending and borrowing of crypto assets. It offers fixed terms and fixed rates to its users.
Most loan protocols use a pool-based model and calculate interest rates based on asset utilization ratios. In contrast, HIPO achieves an interest rate, or price discovery, by using an automatic market maker (AMM) mechanism. This approach significantly enhances capital efficiency and reduces risks associated with lending pools.
HIPO provides fixed income products for the DeFi investment market based on its innovative lending mechanism. The fixed income protocol is an essential building block in the DeFi ecosystem, satisfying diverse risk preferences and investment needs of its users.