July 22, 2024—FILLiquid, the newly emerging Filecoin borrowing and lending platform, is scheduled to launch its mainnet tomorrow, marking a significant milestone in the future growth of the Filecoin network.
FILLiquid is a groundbreaking Filecoin-based liquidity pool set to deepen access to $FIL liquidity for Storage Providers (SPs), allowing them to utilize locked liquidity to secure $FIL loans for pledging.
With the mainnet launching tomorrow, here’s everything you need to know.
Mainnet Incoming: What is FILLiquid?
FILLiquid is a Filecoin-based borrowing and lending platform that connects $FIL token holders with Storage Providers.
The platform is designed to provide new avenues for Filecoin token holders to earn a passive income while reducing the barriers to $FIL liquidity to SPs for storage power growth Token holders can deposit $FIL into the liquidity pool to mint $FIT, a liquid staking derivative token. Depending on how the liquidity pool is used, this LSD rises in value relative to $FIL.
$FIT holders can continue to earn additional sources of passive income by staking $FIT into the protocol to mint $FIG, FILLiquid’s governance token. When $ FIT is staked, it is locked in the protocol, and in return, $ FIG is minted. These $FIG tokens can be used to vote on governance proposals to change the system parameters or be staked into the protocol to earn a share of the revenues generated on the platform.
Overall, FILLiquid generates yield for Filecoin holders while helping SPs access $FIL loans.
The protocol has undergone months of testing, and two external smart contract audits have been conducted through Salus and CertiK.
In addition, the code is fully open-sourced, meaning anybody can review it, ensuring transparency and trust in the platform. Furthermore, the ownership of the smart contract has been renounced, meaning that nobody owns the smart contract once deployed. This ensures that the smart contract cannot be modified, elevating security standards and protecting the interests of all participants.
What Makes FILLiquid Different?
FILLiquid is quickly gaining popularity amongst Filecoin enthusiasts due to its unique proposition of helping Filecoin achieve sustainable storage power growth.
The peer-to-peer decentralized data storage network requires storage providers to pledge $FIL before onboarding new clients. The $FIL pledge keeps SPs honest, ensuring they store data securely and make it available throughout the term agreement. If they fail to do so or act maliciously toward the network, their pledge is at risk of being slashed.
While the pledge helps elevate Filecoin’s storage standards, it also creates hurdles in storage power growth as SPs struggle to acquire $FIL without increasing their financial burden.
This is where FILLiquid steps in.
FILLiquid allows SPs to use the locked liquidity in their miner nodes as collateral to secure loans from the liquidity pool. The SPs’ miner nodes contain all previously pledged $FIL, which is locked for a specific duration. By binding their miner nodes to the smart contract, SPs can use the liquidity inside the node as collateral to secure a $FIL loan to expand storage capacity.
As a result, FILLiquid helps SPs continuously expand their business through capital efficiency.
Mainnet Scheduled for July 23rd: What To Do Before Launch
Filecoin holders are now eagerly awaiting the protocol launch as they prepare to deposit $FIL into the liquidity pool to start earning interest.
Those looking to increase their passive income through FILLiquid can prepare their Filecoin wallets, ensuring they have $FIL to deposit into the liquidity pool.
The testnet for FILLiquid is still open, so users can test the function before the mainnet goes live.
Overall, Filecoin is about to enter a new era of consistent storage power growth over the coming months following the launch of FILLiquid, helping it achieve its goal of providing the world with decentralized, low-cost, secure data storage.
About FILLiquid
FILLiquid is a lending platform that bridges $FIL token holders with Storage Providers that won the Ethereum and Filecoin DeFi hackathon in 2023. The platform allows $FIL holders to earn a passive income through lending, while Storage Providers can access $FIL liquidity at market-based rates to expand their storage provisions.
The protocol intends to help the continued expansion of storage power on Filecoin without increasing financial burdens for Storage Providers, as they don’t have to deposit crypto or fiat as collateral. Instead, FILLiquid allows them to secure $FIL loans using their Beneficiary Address as collateral, setting itself apart from other industry-centralized and decentralized lending platforms.
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