We are happy to announce that Hakka Finance is now available on imToken. Try it on imToken now ~

Hakka Finance is a decentralized ecosystem of financial instruments and derivatives that helps users pursue financial autonomy. What is different from other DeFi protocols is that Hakka Finance has created an entire ecosystem under which there are many DeFi products, including decentralized exchanges, insurance, prediction markets, derivatives platforms, etc.

“We’re so thrilled that the synergy between us, Hakka Finance, and imToken, one of the leading wallets allowing users to explore DeFi frictionlessly. Through imToken, users can trade interest rates and get fixed interest rate deposits and borrowing in our flagship product, iGain - IRS, simpler than ever before. We look forward to helping DeFi players optimize their portfolio with the imToken team closely.”

- Lucien Lee, CEO of Hakka Finance

Why Hakka Finance? And how does it work?

Hakka Finance is an DeFi ecosystem providing decentralized, low-friction, high-efficiency financial instruments and derivatives, allowing users to pursue financial sovereignty. Available now on imToken, iGain is the latest service developed by the Hakka Finance ecosystem. It enables DeFi users to hedge from virtually any kind of financial fluctuation and therefore find alternative ways to fructify their crypto assets.

On the one hand, iGain IRS (Interest Rate Synth) covers against interest rate fluctuations. Hence, lenders can secure a truly fixed income, and borrowers limit their financing costs.

On the other hand, iGain IG (Impermanent Gain) covers liquidity providers against impermanent loss, regardless of the comparative volatility of their asset pairs.

Both systems function as derivative platforms, where users have the possibility to either “long” or “short” the financial metric of their choice (interest rate or impermanent loss respectively for IRS and IG) via the corresponding Long and Short tokens. That process can be done in order to hedge a position or simply to take advantage of fluctuations, by turning a risk into an opportunity!

On both services, DeFi investors with stablecoin savings are able to simply make liquidity deposits by getting LP (Liquidity Provider) tokens and earn trading fees from other users!

How to use Hakka's services in imToken?

Open the imToken App's browser page and search for the keyword "iGain IRS" or "iGain IG" to enter the corresponding DApp.

If you need to get a fixed APY lending through iGain IRS, click Launch App and connect your own imToken wallet address.

Go to the Lending section and choose a stable coin and term of your choice. Input the amount you are willing to lend. iGain IRS will automatically compute the sum of Short tokens you will need in order to hedge interest rate fluctuations, thereby, “fixing” the APY. The Short token is like a premium that you pay, but the only difference is you may sell it after the maturity of the contract and still make profit from it.

If you want to borrow stable coins, just go to the Borrowing section and instead of computing Short tokens, iGain IRS will automatically calculate Long tokens to hedge fluctuations on interest rate.

imToken & Hakka AMA Highlights

Recently, we held an AMA with Hakka in the imToken Discord community. The following are highlights of the Q&A: 

Q: BlackHoleSwap is a DEX under the Hakka ecosystem. Compared with the AMM mechanism of Uniswap/Curve, what advantages does BlackHoleSwap have, and how does it achieve near-infinite liquidity?

A: BlackHoleSwap is one of our earlier works. At that time, we already had Curve as a stable coin swap, but at the same time MakerDAO could not maintain the 1:1 peg of DAI (anchoring) well, and often had 1 DAI = 0.99 USDC, or even 1 DAI = 1.07 USDC. This makes Curve's liquidity particularly susceptible to depletion, losing out to Uniswap in the case of depeg > 4%.

BlackHoleSwap solves this problem by depositing USDC into Compound as collateral and thus lending DAI to trade with users, i.e. BlackHoleSwap is an AMM that allows for "negative reserves", but this comes at the obvious cost of Compound itself being a very "fat" protocol and integrating Lending has increased BlackHoleSwap's gas usage to around 500,000, almost ten times that of a regular transactions.

Q: In the process of working on Hakka Finance, are there any interesting things that are impressive or difficult that you can share with friends in the community?

A: I think the most difficult part is how to find the right community. We hope to find community partners who are interested in DeFi and the financial products we design, and who are willing to contribute. But at present, the DeFi field is still full of Ponzi schemes, and many DeFi players may not know what game they are playing. We hope to slowly gather communities who agree with Hakka Finance's philosophy and products to join us.

Blockchain has no national boundaries. As long as it is shared on the Internet, users from all over the world will experience the product and join our community. Last time we went to another community to share, and suddenly got a group of Iranian users, a place far away from us, who didn’t know each other, but they came to experience our products just because of the introduction of the AMA event. I think this experience is quite new. We also expect Hakka Finance to provide financial services to people all over the world.

Q: What is the follow-up plan for Hakka? On the official website, you can see that Crypto Structured Fund has displayed Coming soon. What considerations does Hakka Finance take into account when adding new functions or projects?

A: At present, most of our efforts are still on iGain. For example, we already have a one-click lending function, and we are about to launch a one-click fixed interest rate loan, so that users can directly use Aave on our platform through a button. Borrow money and buy enough Long at the same time to lock in borrowing costs.

In addition to Crypto Structured Fund, we also have other products that are being developed secretly. How to decide whether to do something is mainly based on whether it conforms to our core spirit: innovative products with the most efficiency and lowest friction, help users pursue financial autonomy.

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Risk Warning: The content of this article does not constitute any form of investment advice or recommendation. imToken does not make any guarantees and promises for the third-party services and products mentioned in this article, nor assume any responsibility. Digital asset investment has risks. You should carefully evaluate these investment risks and consult with relevant professionals to make your own decisions.