HyperFin: A Balancer on Decentralized Finance (DeFi) and Centralized Finance (CeFi)

6 min readMar 9, 2020


You may already know about stable coin investment, but have no clue what HyperFin is. This article will introduce you to HyperFin and give the answers that why we are launching HyperFin, and why we are committed to becoming a balancer between decentralized finance (DeFi) and centralized finance (CeFi).

How HyperFin addresses the limitations of centralized finance

Data opacity of CeFi

Some exchanges and wallets provide flash loan services that users can complete deposits or loans with one click, but the core issues are:

  • The user cannot know his actual and real lending situation;
  • The user cannot know whether the loaned money has corresponding digital assets as mortgage;
  • Users cannot know the total platform reserve.

Since the digital currency lending industry is still in its infancy, many platforms have copied the traditional P2P lending model. However, they are completely different products essentially, for P2P is a relatively regulated credit lending, while digital currency mortgage lending is not regulated. There are many digital currency lending products on the market which extremely simplify the entire process from the user’s application for loan to the user’s mortgage of digital assets. Whether the platform has a private fund pool or whether the mortgage has been misappropriated, users can never know. This is a serious threat to user rights.

Although digital currency lending is currently in the blind zone under legal supervision, and there is no clear regulation on the disclosure of borrower’s information and mortgage information, the lending platform does have a set of self-regulatory rules from the perspective of industry development, which can respond to the urgent appeal of achieving data transparency.

How HyperFin Achieves Data Transparency

  1. Investment funds tracing

The investment products purchased by users in HyperPay will be transferred to HyperFin as soon as possible. Users can get real-time information on their funds lending and investment on the HyperPay APP, such as: decentralized investment, P2P lending (short-term, medium- and long-term), and currently not loaned parts.

2. Mortgage address disclosure

The picture above shows the address of HyperFin’s mortgage assets. Users can view the real-time status of the mortgage assets at any time.

3. Reserves and provisions addresses disclosure

HyperFin Reserves

HyperFin’s total loan reserves are stored to HyperBC (equal to a commercial bank) in proportion by mortgage and platform reserve. Its purpose is to ensure that the platform has 100% solvency when there is a large demand for withdrawals. The following is the reserve address.

HyperFin Provisions

HyperFin provision is to protect the interests of depositors, to satisfy the deposit and payment, and to ensure the liquidity of digital assets. It is the inventory in HyperBC.

HyperFin obtains a large amount of historical data on user loans and deposits from HyperPay. Based on big data analysis of user deposit habits and deposit cycles, HyperFin has set a dynamically adjusted provision ratio. The provision is used to provide the liquidity of the HyperFin current / fixed investment to ensure that the platform does not get into a run.

CeFi Lending Low Efficiency

1. C2C lending advertising-post is inefficient

Some exchanges or wallets have adopted pending order loan matching. There’s a problem that the investment cycle provided does not match the cycle expected by the user, for example, the user wants to deposit 14 days, but the platform only provides 30 days. It is not user-friendly.

2. Unable to do intelligent matching

When the market size is small, users can browse all the lending advertisements and select the one that suits them best. As the number of users increases, the number of published ads increasing correspondingly, without intelligent matching, the user experience will be greatly weakened.

How Hyperfin addresses the limitations of decentralized finance

Low Investment Returns

DeFi has been a heat in 2019, attracting high attention from industry participants. The development of DeFi is extremely rapid, but the shortcomings is also significant. The rate of return of the majority DeFi projects is 2% to 7% per annul, a little low.

How HyperFin offers reasonable and relatively high returns?

HyperFin takes full advantage of its in-depth layout on the financial investment field, and launches industry-leading investment fund products. Among these products, the fixed investment fund has an annualized rate of 10.8% to 12.8%. It provides institutional funds with high yield to better perform than Defi while guaranteeing security.

Decentralized investment platform: Defi clearing costs are high

The decentralized architecture determines that DeFi needs to introduce third-party clearing, and each actuarial calculation will consume huge costs. Take MakerDao, the DeFi representative project as an example, in order to achieve complete decentralization, MakerDao introduced the Keeper mechanism in the system. Keeper’s responsibility is to liquidate when the mortgage asset is less than the liquidation limit and make a profit from it. From its Q1 financial report last year, it can be seen that Keeper has obtained a considerable part of profits of the entire lending system, which disguisedly raised the financing cost and reduced the investment return on Defi.

How HyperFin does clearing efficiently and save costs?

HyperFin uses a bank-level financial clearing system. The entire system is independently developed by HyperFin, and the clearing speed is at the forefront of the industry. It provides instant, efficient, and low-cost financial clearing for HyperFin investment products.

DeFi only supports specific public chains

At present, the DeFi project is mainly concentrated in the Ethereum ecosystem. It cannot provide fully decentralized financial services for public chains such as BTC, and the industry coverage is extremely limited. Even if decentralized investment is realized by mapping BTC into ERC20 tokens, it still relies heavily on centralized management.

How HyperFin supports more public chains?

HyperFin breaks the ecological limitation of DeFi, and currently supports more than 40 public chains, achieving full coverage of mainstream currencies to meet the diverse needs of institutional users.

DeFi security vulnerability

DeFi is currently in the early stages of development with many security vulnerabilities, so it cannot provide high-intensity protection for user assets. In the first two months of 2020, there were two hacking attacks against Defi, one was Flash Loan and the other was Curve. From the current point of view, Defi still has a long way to go to mass adoption. In the field of asset management, asset security is always the most concern.

How HyperFin eliminates security risks?

In order to solve the security problem of digital assets, HyperFin reached a deep strategic cooperation with financial service platform HyperBC. HyperBC provides a full range of digital asset custody services to ensure the security of HyperFin’s assets 24/7.


Supplementary explanation and reference links:

  1. HyperBC、HyperFin、Hyperpay





DeFi is an abbreviation of Decentralized Finance, which usually refers to decentralized applications (DApps) composed of financial smart contracts based on Ethereum.


CeFi means centralized finance, which usually refers to digital asset investment services provided by centralized platforms.

4.Traditional bank reserve

Reserve is a deposit stored to central bank from a commercial bank’s cash deposit in proportion.

5.Traditional bank provision

Provision is a preparation made by commercial bank to protect the interests of depositors, meet deposit payments, and ensure liquidity of assets. It includes cash on hand and provision deposits in the central bank.

6.Digital asset C2C lending

Digital currency C2C lending refers to digital currency lending activities between users (consumer to consumer).

7.Digital currency flash loans

Flash loans can start loans immediately without providing any mortgage, all of which need to be done in one transaction (one Ethereum block).


OTC refers to digital currency transactions performed over-the-counter.

9.Keeper mechanism on MakerDao:


10. Curve attach


11. Hong Kong Trust Licence and Payment Licence





Secure, transparent and efficient digital asset custodian & payment solutions provider.