Approve a new System Wide Credit Limit for the Medical Equipment ruleset
Details
The $MEC1 ERC-20 token will have a fixed oracle value of $1 per token. Collateral tokens represent the value of the Lending Partner’s customer deposits. The Designee is responsible for validating valuations and minting new collateral tokens into existence. These tokens cannot be liquidated on-chain, and appropriate provisions exist in the contracts for liquidation of the real-world assets. The corresponding $MEC price feed can be found here.
$MEC1 Parameters:
Collateral Ceiling: 3M
System Wide Credit Limit: $1M
125% collateralization ratio (80% loan-to-value)
Medical Equipment Financing Ruleset
Equipment Eligibility
New and used medical equipment
FDA-approved (if applicable)
Minimum equipment value of $10,000
Maximum equipment age of 5 years for used equipment
Minimum 2 years in business for established practices
For new practices, primary healthcare provider must have at least 5 years of experience
Loan Terms
Loan amounts from $25,000 to $500,000
Maximum Loan-to-Value (LTV) Ratio of 80%
Down payment recommendation: 10% for new equipment, 15% for used equipment
Collateral and Security
Financed equipment serves as primary collateral
Personal guarantee required for individual borrowers or key stakeholders in smaller practices
Additional collateral may be required for high-value equipment
Insurance Requirements
Comprehensive insurance coverage on the equipment, with the lender named as loss payee
General liability insurance for the medical practice
Documentation Requirements
Equipment quote or invoice from an authorized dealer
Repayment Terms
Monthly payments
Equipment Considerations
Lender reserves the right to inspect the equipment
Borrower must maintain the equipment according to manufacturer specifications
Default and Recovery
Default triggered by missed payments, breach of loan terms, or loss of necessary licensing
Lender reserves the right to repossess equipment in case of default
Reporting Requirements
Notification of significant changes in business structure or ownership
Immediate notification of any regulatory issues or loss of applicable licenses
Designee Role
Please note, Mainframe Group, Inc. continues to act in its capacity as HIFI DAO’s Designee. The DAO appointed designee will oversee and represent Hifi DAO’s interests in the transaction. This includes reviewing reports and updates provided by Lending Partners and ensuring compliance with DAO approved collateral rulesets. The Designee is responsible for both minting collateral tokens equal to the value of the lending partner’s customer deposits and for enforcing DAO set credit limits.
Lending Partners
Please note Finance Ventures continues to act in its capacity as a lending partner. The lending partner is responsible for driving demand for protocol sourced liquidity, administering loans to borrowers, and liquidating assets when appropriate. Lending partners are required to keep accurate records and source independent third-party appraisals for accurately assessing the value of collateral.
Legal Agreements
No new legal agreements are necessary for this HIP. Existing agreements, cover the scope of this new collateral ruleset once approved by governance. For your reference, here are links to our existing Designation Agreement and Agreement of Association.
Voting
Upon this proposal’s success, Hifi DAO will execute the necessary variable changes to the Hifi Protocol’s Fintroller and take the necessary technical steps to integrate $MEC1 Tokens into the Hifi Protocol with the set collateral ceiling and fixed oracle value. It is recommended that DAO members review the full agreement for a comprehensive understanding before casting their votes.
The proposal is expected to go live Tuesday, September 24, 2024 with voting expected to begin on Thursday, September 26, 2024.
Additional Resources
Additional details can be found in our recent blog post:
I support HIP 9, expanding Hifi Finance’s offerings with a secure medical equipment financing solution while mitigating risks through robust collateral rules.
Yeah, this is really amazing and impressive.
Hifi project is really getting a big improvement in their platforms. It’s really going to shape and improve things. This would be very nice and impressive.
I will do love it…
This proposal is a well-structured attempt to integrate RWA like medical equipment into a DeFi protocol. In my opinion, the complexity of managing real-world collateral and enforcing rules in a decentralized environment could introduce challenges, but I’m sure HIFI will succeed!
I will strongly support this improvement proposal to onboard $MEC1, which will represent the Lending Partner’s customer deposits from Medical Equipment collateral.
I have great trust in this project overall, as it is gaining exposure to more and more experts from various industries. Adding such collateral really demonstrates that many types of real-world assets can be onboarded on-chain for fixed-rate borrowing at great rates. This contributes to expanding the possibilities for Hifi to grow toward a strong market fit.
Hifi Finance DAO, with the careful and professional hand of the Mainframe Group Inc., is already doing business with individuals like Chad Beus of Beus Quarter Horses, Kevin Bradburn, CEO of Orchard Securities and owner of the 1952 Volkswagen Type 2 DeLuxe Microbus that is currently collateralized through the $VWMBp token, and other partners with Finance Ventures LLC, managed by Cameron R. Hellewell. All these names and businesses trust Hifi through a fully legal process that will help protect all stakeholders and investors to support this project as it grows and matures. No BS for rug pulls—just real business being done as it should, demonstrating what can be accomplished with DeFi. I will be proud to support and experience this growth as a member of the community.
The world of Equipment & Machinery is definitely worth pursuing and medical is a great starting point.
As an FYI - Within the Details section, it states: 'The Designee is responsible for validating valuations ', however there is no further detail within the Designee field itself towards this requirement or how it would be facilitated, however there is an overview within the Lending Partners section. Whilst both Designee & Lending Partners are aligned, it is a slightly mixed message on whom is ultimately responsible. or at least, that is how I have initially read it.
Overall, congrats on getting to this point and here’s to the future.
This proposal is a fantastic step forward! Approving a collateral ruleset for the $MEC1 ERC-20 token not only enhances transparency but also ensures a stable and reliable value for medical equipment-backed assets. By linking the token to real-world collateral and having safeguards in place, this creates a solid foundation for the future of medical equipment financing. It’s great to see innovative solutions like this that bring both security and real-world value to the blockchain!
Personally i think this is really impressive going to shape and improve things. This proposal is a well-structured attempt to integrate RWA like medical equipment into a DeFi protocol. Hifi project is really getting a big improvement in their platforms. I’m waiting and rooting for this, good luck
I will voted this! Personally i think this is really impressive and going to shape and improve things. This proposal is a well-structured attempt to integrate RWA like medical equipment into a DeFi protocol. Hifi project is really getting a big improvement in their platforms. I’m waiting and rooting for this, good luck.
Hifi Finance’s proposal for the $MEC1 token and medical equipment collateral ruleset is an exciting move for integrating real-world assets into DeFi. It opens up new opportunities for medical financing while ensuring strong protections. Looking forward to seeing this in action!
Massive potential ahead for this project! Proud to be part of the community as we move toward an exciting decentralized future. Onward and upward! #SupportTheFuture"
This proposal is a significant step towards streamlining medical equipment financing within the Hifi ecosystem. The clear collateral rules and borrower qualifications will help ensure stability and security in the lending process. Looking forward to seeing how the $MEC1 token integrates into the Hifi Protocol!
