What is infiniFi?
infiniFi is a decentralized “onchain fractional reserve system” that allows users to mint synthetic tokens like iUSD or iETH by depositing USDC or ETH collateral. Unlike traditional fully-backed stablecoins, infiniFi uses a portion of these deposited assets to generate extra yield through a blend of liquid (e.g., Aave, Morpho) and illiquid/maturity farms (e.g., Pendle, Ethena) while keeping the rest liquid to support redemptions.
Users can choose to lock their receipt tokens for enhanced rewards, as locked positions garner boosted yield and governance power. The protocol employs a governance voting mechanism, allowing locked users to influence how collateral is allocated between liquid and illiquid yield-generating strategies.
