Hyfi Overview

Business Overview

If you are considering launching a new business in cryptocurrency and don’t know where to start, we recommend starting with a Hyfi platform powered by MCB. Hyfi (which stands for Hybrid Finance) is a MyCryptoBrand application template which combines the best components of centralized (CEFI) and decentralized (DEFI) finance into one robust consumer app. Hyfi has some of our most successful case studies to date and, as a result, contains our most developed feature sets.

Core GX Products

Your Hyfi application will offer users a single point for storing and growing their digital assets. Your app will provide them access to multiple fixed income-generating instruments across various popular asset classes. Users can add both forex and crypto assets to your application and immediately start growing their portfolio. Here are the default products which your userbase will have access:

1. Crypto Vaults
2. Forex Vaults
3. TokenSwap
4. MoneyMarkets
5. Bond Markets

Crypto Vaults

Crypto Vaults is the name of our “wallet as a service” product that is built into each one of our application templates. Upon launching your Hyfi application, you can select which of the crypto vaults you want to enable for your users. You can always add support for additional Crypto Vaults on your platform after you get started. Each user who registers for your application will be given a Crypto Vault for every asset you enable. Each of their vaults will have its own balance, transaction ledger and analytics, which will be available to them via your application and available to you via the admin dashboard.

There are two types of Crypto Vaults; Deposit and Non-Deposit, and currently, the Crypto Vaults support over 60 assets. A Deposit Crypto Vault is reserved for the assets for which we have a fully integrated blockchain connection resulting in the user getting a unique deposit address whereby they can send coins from an external wallet directly into their Vault. Currently, we provide Deposity Crypto Vaults for the following assets;

1. Bitcoin
2. Ethereum
3. All ERC-20 Tokens such as USDT, Chainlink, USDC and many more
4. Cardano
5. Ripple
6. Tron

For these Crypto Vaults, your users will be able to do the following actions:

1. Deposit crypto directly from an external wallet to their Vault within your application
2. Store the crypto
3. Withdraw crypto directly from their Vault within your application to an external wallet
4. Transfer the crypto to another user on your platform, which only requires the recipient’s email
5. Trade between any other asset which you support on your platform
6. Analyze their transactions
7. Evaluate the performance history of the assets in the Vault against another currency (typically USD)
8. Earn interest on all assets in their crypto vaults

A Non-Deposit Crypto Vault is the same thing as Deposit Crypto Vault, except there is no deposit address that can be used by the user to send coins from an external wallet to the respective Crypto Vault. Whenever one of our app owners requests that we add support for a new currency, we can add it to the list of Non-Deposit Crypto Vaults instantly, and once we see that the demand for that specific currency is high, then we integrate the respective blockchain and enable the deposit feature for the asset in question. Consequentially there will always be far more Non-Deposit Crypto Vaults than Deposit Crypto Vault currencies.

So Why Even Provide Non-Deposit Crypto Vaults?

The great thing about Non-Deposit Crypto Vaults is that they enable your user to use all the features that accompany a Deposit Crypto Vault for a host of newer currencies.

So How Do My Users Add Money To Non-Deposit Crypto Vaults?

They can still add money by trading into the currency in question from a currency they can deposit in. For example, your application most likely supports Bitcoin, and maybe it also supports BNB. At the moment, BNB is a Non-Deposit Crypto Vault, so a user could still hold BNB on your platform by trading from another asset into BNB, and now he has BNB in his BNB Vault and can transact and even withdraw the BNB directly to another wallet. Here are the features that are available for all Non-Deposit Crypto Vaults:

1. Withdraw crypto directly from their Vault within your application to an external wallet
2. Store the crypto
3. Transfer the crypto to another user on your platform, which only requires the recipient’s email
4. Trade between any other asset which you support on your platform
5. Analyze their transactions
6. Evaluate the performance history of the assets in the Vault against another currency (typically USD)
7. Earn interest on all assets in their crypto vaults

To recap, you will be able to select any number of cryptocurrencies for which your users will each be given a Crypto Vault where they can deposit, exchange, grow, and withdraw their crypto.

Forex Vaults

A Forex Vault is exactly like a Crypto Vault but for forex currencies. We currently have support for over 12 different forex currencies, and you can enable any of them. Once enabled, your users will get a Forex Vault in each of the enabled currencies, whereby they can:

1. Deposit money from an external bank account. NOTE: This is only included if you have enabled the OTC product in your application.
2. Store the money
3. Withdraw money directly from their Vault within your application to their bank account. NOTE: This is only included if you have enabled the OTC product in your application.
4. Transfer the money to another user on your platform, which only requires the recipient’s email
5. Trade between any other asset which you support on your platform
6. Analyze their transactions
7. Evaluate the performance history of the assets in the Vault against another currency (typically USD)
8. Earn interest on all assets in their Forex vaults

Even if you haven’t included the OTC product into your application, the Forex Vaults are still a very important offering for your users as it allows them to hedge between their crypto holdings and their local currency.

TokenSwap

TokenSwap is the name of our simple exchange product. Whenever a user wants to swap money in a specific Vault to another asset, they use TokenSwap. As the app owner, you can configure the pairs that you want them to be able to swap between from the list of assets you have enabled for your application. Once you configure a pair, the customer can exchange the respective assets. TokenSwap is available between Crypto to Crypto, Forex to Forex, Forex to Crypto and Crypto to Forex. All trade data is recorded in the users debiting Vault and crediting Vault.

Integrated Liquidity

One of the unique features of TokenSwap is that the liquidity source for the trade is determined by the app owner. When configuring the pair, you can select which of our liquidity providers you want to use and include yourself if you want to fill the transaction yourself. Most of our app owners don’t end up putting themself as the liquidity provider but rather take advantage of our default options, such as Global X Change, whereby their customers have unlimited liquidity when using TokenSwap.

MoneyMarkets

So, MoneyMarkets is one of the two most important products which the application will be offering to your users. MoneyMarkets is a Defi integration directly into the Crypto Vaults. It enables your users to earn a fluctuating interest rate daily on all crypto holdings they have on your platform. This is an enormously valuable selling proposition for your application. It resolves the most cumbersome issues with traditional DEFI platforms, such as;

1. Gas Fees
2. Choosing the right protocol
3. Having assets dispersed amongst multiple wallets
4. Securing multiple wallets on the client side

The MoneyMarket interest rates will be displayed in your app and are available via API to display on your website. Your users can see how much their next interest payment is based on the balance they have in their Crypto Vault and today’s MoneyMarket rate. The interest rate is applied to the balance that the user had in any given Crypto Vault during the previous 24 hours. The interest payment is paid into a specific MoneyMarket Vault which the user gets for each asset that you enable a regular Vault for. The MoneyMarket Vault acts as the collection Vault for each interest payment, and the user can withdraw the balance from any of their MoneyMarket Vaults directly into the corresponding Crypto Vault. Some additional distinguishing features include;

1. No commitments or lock-up periods
2. No minimum requirements
3. Available on all supported cryptocurrencies

The MoneyMarkets is the ultimate product to help bridge the gap between your users and the Defi world because it allows them to reap the benefits of Defi without undergoing the typical setbacks. It is because of this that it functions as such a powerful customer retention tool.

Bond Markets

The Bond Markets is a suite of debt products that are built on the MarketsVerse Protocol and is the most important product in your Hyfi application. The Bond Markets enable any company to create and issue an automated debt contract. It is a loan origination platform that allows companies to issue and sell corporate debt. Companies can issue bonds without virtually any limitation across various configurations. If a user purchases a Bond from a company, the user’s capital is transferred directly to the company that issued the Bond. The Bond Protocol debits the company’s vault for the daily interest payment each day after that for the lifetime of the Bond. Upon completing the Bond, the user must redeem the Bond from his application which will do one final debit from the company’s Vault for the initial principle minus issuance fees (if any).

With respect to your Hyfi application, you can issue the bonds yourself, or you can list the bonds issued by other companies. Either way, your user can evaluate and invest in the bonds you have approved. These bonds can be issued in any currency and are typically issued in BTC, ETH, USDT, and USDC.

The Benefits Of Bond Markets To Your User

The user can access bonds that pay higher interest rates than the MoneyMarket rates can offer because the Bonds are locked up for a period of time. These interest payments are made daily directly into a specific Bond Earnings Vault that acts as a unique ledger for the sole purpose of collecting interest payments in each currency in which the user has bought bonds. The user can transfer these payments directly into their Crypto or Forex Vaults at any time. The real opportunity for the user is that t they can buy Crypto Bonds, which means that the respective Bond is issued in a cryptocurrency. This means that their interest is earned in the cryptocurrency of the Bond, which could provide a compounded return potential if the price of the asset they are earning goes up. It is a perfect solution for mid to long-term cryptocurrency holders.

Understand The Bond Protocol

Up until now, we have discussed what the Bond Markets are and how the user can benefit from them. Let's look a little deeper at how the app owners fit into the Bond Markets. As expressed in an earlier paragraph, the Bond Markets allow any company to issue Bonds and raise money and enable users to buy into those bonds. This indicates that the company that issued the bond is responsible for ensuring that it can produce the funds that will be debited for the daily interest payments and the final settlement. So, what if the company does not have the funds to make the daily interest payments and, eventually, the final settlement? The respective transaction will fail, causing the Bond to default and notify the user. The chief use case of this Bond Protocol is companies raising capital via the debt markets instead of traditional equity financing.

What If You Do Not Want To Raise Money Via Bonds?

The Bond Protocol also provides utility to companies that can generate returns greater than the rates at which they issue the bonds. Here, as the app owner, you can participate in what we call Bond Arbitrage. Bond Abitriage is a function we have built within the Bond Markets system that enables a company to issue a bond to their users but connect it to another bond issued by another company. Automation is key in this product. Let’s do an example:

• You will be Company A
• Company B has already issued a bond which is not listed on your application. (Bond Cost = 1000 USDT, Monthly Interest Rate = 4%, Bond Term = 1 Year)

You can issue a bond in your app for the same currency (USDT), same Bond Cost (1000 USDT), and same Bond Term (1 Year), but you can change the interest rate to a lower amount than what company B is offering, for example, 2%.

Now your user can only see the bonds you listed on your app, and they can choose to buy the bond. At this point, the 1000 USDT gets debited from their Vault and sent to your Vault. And immediately thereafter, the system will trigger the purchase of Company B’s Bond but from your account, so the 1000 USD will get debited from your account and will be sent to Company B. Now, every day, Company B will be debited for the daily interest rate which at 4% a month is 0.133% a day or 1.33 USDT per day and that amount will be sent to you. Your Vault will then get debited for the interest payment that you owe to your user, which at 2% a month is 0.06665% or 0.67 USDT. Your customer directly receives his interest payment, and you are left with 1.33 USDT — 0.67 USDT = 0.67 USDT or 2% of your user’s Bond Purchase Value as your spread. The entire process which I just highlighted is fully automated, and it happens every day for all users who have purchased a Bond on your app. You, as the app owner, have full control as to which Bond you connect your Bonds to and the other configurations of your bond.

GX Wholesale Bonds

The process which we just outlined is supposed to take place between any two bond issuers, but as we are onboarding more and more app owners, we have established a standard set of wholesale Bonds that are issued by our parent company Global X Change using their proprietary Defi Routing Engine. Please read about the Defi Routing Engine here. App owners can issue bonds and connect them directly to bonds issued by GX in BTC, ETH, USDT, and USDC, paying 5.00% a month until the end of 2022. You are not obligated to connect the bonds with GX bonds or anyone bonds if you do not want to. We are only offering our GX Bonds for a limited period of time as a mechanism of empowering our app owners with an incredible opportunity that they can leverage.