HiP Token

HiP Lending

HiP Lending Introduction

  • HiP Lending is a high interest, low risk lending platform where all loans are documented on the blockchain, offering transparency for global investors (currently hosted at app.hiplending.com).
  • Hard assets back all loans, initially gold, which is stored in vaults. Fiat deposits fund the loans.
  • A mobile-banking-style interface allows lenders to choose loans to fund and borrowers to receive and pay back their loans.
  • We go to market in Thailand, where we have unique access to licenses and existing gold lending businesses.
  • HIP Token is an ERC-20 token that allows lenders to boost their interest rate by locking up a proportional amount of HIP tokens.


HIP Token

Hold HIP, boost your interest.

The HIP token is a utility token that is tied to the collateralized loan volume on the HiP Platform via a simple mechanism: additional interest. When lending, the user may choose to lock up a certain amount of HIP tokens for a period of time. During that time the lender is eligible to receive a higher interest rate, in proportion to the amount of tokens that they locked up. This proportion is chosen so that the lender is not exposed to the downside of token volatility. If the lender locks up HIP tokens and provides a proportional amount of liquidity, they will get extra interest to offset their downside exposure.

The formula for extra interest is

Additional interest = H / F where

○      H is the dollar amount of the HIP tokens locked up at the time of lock up.

○      F is the dollar value of the fiat investment. This is subject to a minimum requirement, which is 100 x H.


For example, if a user locks up $1000 worth of HIP, they can receive an extra 1% on a loan of $100,000. This extra interest perfectly offsets the token values at the time of lock up, so that even if the HIP token goes to zero, the extra interest ($1000 = 0.01 * $100,000) pays for it, so there is no financial loss.

Additional uses for the token include referral bonuses via network marketing and discounted tax fees. As the business grows we may implement additional uses as the opportunities arise.


Fiat Investors

Lenders and borrowers on the HiP Platform are not required to purchase HIP tokens, as this would create unnecessary barriers to entry and would expose users to the volatility of HIP tokens. However, there is a reward for holding (locking) tokens in parallel to lending money, namely an increased fiat interest return. This additional return provides token holders with downside protection, while still maintaining the unlimited upside potential of the token itself. By doing this, we expand the market of potential token holders from token speculators, a market of about $200B in value, to the entire class of fiat investors, worth around $50T.


Money Flow


Locking Mechanism

Locking tokens is done thru the HiP Platform. Locking is done on the HIP token smart contract, which is open source. The time duration for which the tokens are locked is determined in advance by the user. During this time the tokens will no longer be transferable. After the time has passed, the user may unlock the tokens, at which point they become like normal tokens, freely transferable.


Medium of Exchange

Another way to view the token model: we pay our users with extra interest to hold our token. This ties the value of the token to the volume of loans being issued and reduces the velocity of the token. With this formulation, we can express the expected price in terms of the famous medium of exchange equation MV = QP.

This equation simply counts money flow in two different ways and asserts the two different ways must arrive at the same number. In the first term, we have M, the number of monetary units in supply (21M Bitcoin, for example) and V, the average number of times a single unit changes hands in a given time window, say a year. These numbers multiplied together must equal the number of units of currency that change hands in a year. Another way to count this quantity is to look at the number of transactions and the average price paid in those transactions. This is the same quantity, factored differently, therefore the two sides of the equation are equal.


Let’s apply Vitalik Buterin’s version of this (https://vitalik.ca/general/2017/10/17/moe.html) to the HIP Token, using  C = QH / M, where

●      C is the cost of the token

●      Q is the dollar-amount of goods and services demanded by it

●      H is the average hold time of the token in years

●      M is the total number of tokens


The transformation from MV = QP to C = QH / M is as follows. The velocity V is the number of times a given token changes hands in a fixed length of time. The inverse of this 1/V is the hold time. If V is 2 transfers / year, then H = 1 /2 year per transfer. The cost C of the token is the inverse of the price level P, which is how many tokens you need to service the demand denominated in say dollars. If the cost of the token is $10 / token, then the price level P is 1/10 token per dollar. Swapping these variables in gives the above equation MC = QH.

For example, if there are 1B tokens and we do $200M in volume every month and 1% of that is interest funded by token purchases, and the average loan length is 12 months, we have

C = $200M * 0.01 * 12 / 1B = $0.024

HIP tokens will be available both on the listing exchange (to be determined) and over-the-counter (OTC) on hiplending.com.


Issuance Policy

Token issuance will follow the following distribution.

●      10% already sold to previous investors

●      15% will be sold in the private sale of the IEO

●      30% will be sold during the public sale of the IEO

●      10% will go to team and advisors

●      25% will be allocated to company reserves

●      10% will go to CBX users via airdrop


The other parameters for the sale:

  • Token Supply: 1B (1e9)
  • Public Sale Price: $0.025 / token
  • Soft Cap: $1M

The 20% put in reserves may be sold to lenders on our platform at a minor discount, matching demand for higher interest rates on loans. For example, if $5M worth of loans are issued one month, we may offer $50,000 worth of tokens for sale at a discount to those lenders, in exchange for a better interest rate, depending on the capital needs of the business.


Burner of Last Resort

Additionally, a percentage (to be determined) of the monthly revenue of the company will be used to purchase HIP tokens from the market. These tokens will then be burned, reducing the total supply of tokens, providing a stabilizing pressure to the price.


Low Risk 

The physical assets we receive as collateral are liquid and can be sold to pay the principal and interest back to the lenders, making the loans much more secure than the paper markets. The loan-to-value ratio is chosen so that the volatility of the asset price is not a realistic threat to capital. Fiat currency is secured using existing banking infrastructure, so we are not introducing any new credit risks.


How we will use the money

Creating Value and Revenue

Value within the company and token economy will come with scale in liquidity and user count. By providing class competitive Fintech banking services paying 5% + interest on all deposit accounts HiP believes scale in number will be achieved quickly. Value is also created during the process of regulation, both locally and internationally. HiP has secured the first licences permissions subject to capital requirements being met.



Land and Expand

The initial asset class that we will lend against is gold. We have a lending business that is already operating in Thailand as our pilot. This business is very profitable and stable. After our digitization of this business is complete, we will expand into other asset classes and geographic territories. Future asset classes include

  • Other Precious Metals
  • Real Estate
  • Gems
  • Corporate Stock

Future geographic regions include

  • Vietnam
  • Philippines
  • Indonesia
  • Cambodia
  • Myanmar
  • Laos

Collectively, these ASEAN countries have nearly $3T in GDP.



Q4 2019

Retail Borrowers

Q1 2020

Corporate Loans to Gold-Shops, Micro-Lenders

Q2 2020

Bank Style Interface for Lenders and Borrowers

Q4 2020

Expansion into Real Estate, other Asset Classes

Q4 2021

Expansion into other ASEAN countries

  • Q3 2019 – Beta platform – complete
    • Between 1% and 3% interest made on all lending
  • Q1 2020 – Completion of funding
    • ~100 users
    • ~$2m lending volume
    • $2.5m is required paid-up capital for license applicant
      • Nano-Finance – $1.7M
      • Pico Plus – $430K
      • Pico – $270K
      • Custodian License – $100K
    • Q2 2020
      • ~1000 users
      • ~$5m lending volume
    • Q3 2020 – Direct to Market Retail Offering (Thailand)
      • ~4000 users
      • ~$10m lending volume
      • Complete license acquisition
      • Increase high net worth and institutional money deposits
      • International trade liquidity provisions
      • Increase margin on all trades from 3% to 9% interest on all lending
      • Investors and liquidity returns increase from 0.75% to 5%
    • Q4 2020
      • ~10k users
      • ~$20m loan volume
    • Q1 2021 – Expansion into Real Estate
      • ~50k users
      • ~$50m loan volume
      • $95B Thai Real Estate Lending Market[1]
    • Q4 2021 – Expansion into ASEAN
      • ~500k users
      • ~$100m loan volume
      • Begin lending in Vietnam and Philippines ~$550B GDP


We can take these growth estimates and plug them into the medium of exchange equation (see above) to project growth in token value.


[1] https://www.globalpropertyguide.com/Asia/Thailand/Price-History

HiP Lending Whitepaper – English

HiP Pitch Deck – English

HiP Lending Whitepaper – Chinese

HiP Pitch Deck – Chinese



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