In this episode of the Slatecast, host Akiba and Doug from HiFi Finance discuss the potential impact of decentralized finance (DeFi) on tangible real-world assets, specifically through tokenization. HiFi Finance is a decentralized lending and borrowing protocol that fixed-rate loans. Its partnership with Crown Ribbon aims to bring horse syndicates onto the blockchain and offer token holders a unique, SEC-compliant security that pays dividends.
Crown Ribbon offers legal guidance and assistance with filing exemptions with the SEC, acts as custodian for the ownership papers of the horses, and handles the issuance and audit of digital assets. The goal is to provide liquidity to syndicate owners and disrupt the performance horse industry. Doug notes that although horse syndicates may not be the most technologically savvy, the user experience can be made more accessible through widgets and ACH payments.
The tokenization of real-world assets allows a broader audience to invest and gain financial exposure to experiences such as horse ownership and can also serve as a growth tool for syndicates. In addition, the process can be replicated for other assets, such as high-end art and collectibles, and can provide a way for owners to hedge against risk and tokenize it between parties. HiFi Dow is responsible for governance decisions such as which assets to list and what terms to put on loans, as well as resource allocation and significant upgrades to the token economics.
The Crown Ribbon offering is expected to launch in Q3 2023, and HiFi Finance will deploy on Ethereum Mainnet in early January. Interested parties can follow Crown Ribbon HQ on Twitter for updates and join the HiFi Discord for more in-depth discussion.