infiniFi is a defi protocol that uses fractional reserve banking principles from traditional finance and user steered asset-liability management made possible by blockchain transparency to enhance user returns. Users either stake or remain in naked iUSD or lock for some duration and then the USDC backing they deposited is deployed to various liquid and illiquid defi yield farms like Pendle PTs, Ethena assets like sUSDe and Aave USDC, in a way that is duration matched to user locks. Some portion according to the reserve ratio of the system, is deployed to liquid farms. That capital is used as immediate liquidity for redemptions, the rest of the capital is deployed to higher-yielding duration assets, allowing for superior returns for both liquid and illiquid depositors.