INFINIFI: AMPLIFIED YIELD

Summary from the TLDR Crypto newsletter

InfiniFi introduces an onchain fractional reserve banking model that allocates a portion of “liquid” stablecoin deposits into higher‑yield “illiquid” farms to boost returns for both liquid and locked depositors without adding new protocol risk. Users choose between staking ($siUSD) for instant access or locking ($liUSD‑xw) for higher illiquid yields. InfiniFi then intelligently leverages part of the liquid pool into long‑duration strategies, amplifying overall yield. The only liquidity risk arises if liquid depositors withdraw en masse, but this pressure diminishes as total value locked grows, mirroring traditional banking resilience.