Bifrost is launching vFIL, one of the first Liquid Staking solutions for the Filecoin Network. Staking is an essential component of the Filecoin ecosystem. Storage providers must stake a proportional amount of FIL, based on the computing power they provide, to ensure the stability of the network.

Filecoin Network

Since its mainnet launch in 2020, the network has attracted over 19.19 EiB of storage space. Thanks to its economic incentives and cryptographic measures that ensure the reliability of stored files over time. However, the project’s ambitions have not been fully realized: Filecoin continues to work towards achieving a “global hard disk” with more computing power.

One key strategy is to lower the entry barrier for new participants to achieve its goal. There are currently two barriers that potential Storage Providers must meet: high FIL staking cost and physical storage operating costs.

To ensure the stability of the network, all Storage Providers must stake a proportional amount of $FIL based on the computing power they provide. In the event of offline storage or data loss, Storage Providers face a Slash penalty.

Each sector packaged for storage providers requires hard drives and stake tokens. Overall, the staking cost of FIL accounts for 80% of the cost structure of storage providers, whilst the cost of physical storage operations (including hard drive purchase, depreciation, maintenance, iteration, electricity, network deployment and network fees, etc.) accounts for only 20% of the cost.

Thus, the difficulty in FIL acquisition could deter potential storage providers from entering this field or stop everyday users who hold FIL from earning more via operating their own devices.

Liquid staking solutions present possibilities for breaking down these barriers. We can overcome both hurdles with liquid staking, which is also facilitated by Filecoin’s recently launch of FVM, a Filecoin-based virtual machine environment that allows developers to deploy smart contracts directly to Filecoin.

Liquid Staking

Liquid staking is a rapidly growing alternative to locking up a users’ tokens and contributing to the security of PoS blockchains. PoS chains require stakes from nodes in the network to maintain their security, and there is a waiting time before unstaking allows for the retrieval of staked assets. This imposes an opportunity cost on the node and the pledgee delegating to the node. Liquid staking provides stakers with increased liquidity and capital efficiency.

Bifrost – Omnichain LSD

Bifrost, a leading permissionless cross chain liquid staking protocol for staked assets, has leveraged liquid staking to provide opportunities for multiple asset types through its SLP (Staking Liquidity Protocol) protocol. Through the protocol, Bifrost mints liquid staking derivatives (LSD), vTokens, enabling users to participate in staking without losing liquidity.

Bifrost SLP will release a new LSD asset, vFIL, which supports full-chain LSD extensions. With vFIL, Bifrost will become the liquid staking service provider for the Filecoin ecosystem & extend the base layer of Filecoin.

vFIL Mechanism

Bifrost’s non-custodial liquid staking solution allows users to stake their FIL and receive vFIL (voucher FIL) in exchange. vFIL is one of the voucher tokens in the Bifrost vToken set, representing the liquid-staking token of staked FIL.

By using the bridge between Filecoin and Polkadot, vFIL can exist in EVM and Substrate asset formats, simplifying the operativity between the Polkadot and Filecoin FVM ecosystems. The underlying mechanism behind vFIL is run by the Bifrost SLP.

vFIL holders will also receive an ongoing share of FIL revenue. While storage providers can expand their storage capacity in this way, without focusing on staking requirements.

Revenue Structure

The storage provider’s revenue is divided into three main components:

1. Storage revenue – The storage provider earnings for storing data for Filecoin users. After gaining storage revenue, the system locks it and unlocks it linearly over 520 days.
2. The participation reward for the consensus nodes of the Filecoin network.
3. Gas fees.

Revenue Allocation

The storage provider and the vFIL holder will receive a portion of the revenue, with the storage provider earning ~60% and the vFIL holder receiving ~40% (as defined by the storage provider). The vFIL’s revenue portion shall be compounded automatically as interest and represented in an upward adjustment of the exchange rate.

Consider the following example with an accumulation return of 5%. By staking initially 1 FIL, users acquire a 5% return on their initial principal. With this system in place, the swap rate will automatically adjust upward so that each vFIL equals 1.05 FIL returns — allowing users to reap increased rewards from providing liquidity. The payout mechanism eliminates the need for users to manually claim and compound their earnings, providing a hassle-free experience for vFIL holders.

If another user were to stake 1 FIL at this time, they would only receive ~0.9524 vFIL, which would be fair to any user casting or redeeming at any point in time.

vFIL Benefits

There are various advantages for users staking FIL and minting vFIL on Bifrost:

• Exposure to FIL native staking rewards whilst holding vFIL and having liquidity: vFIL’s price attribute will mimic FIL; therefore, vFIL will fluctuate with the rise and fall of FIL, however, vFIL’s price will rise relative to FIL because of the accumulation of staking income.
• Automatic compounding of staking rewards: without any operation, the rewards will be automatically re-commissioned and compounded.
• Access to liquidity with Flexible trading: vFIL is tradable at any time in the secondary market, holding vFIL users will not have any liquidity risk.
• Advance earnings: Although storage revenue takes 520 days to unlock linearly, the price of vFIL reflects unissued earnings in advance, with a discount rate.
• Fast Redemption: Users can redeem their underlying FIL with rewards whilst vFIL is destroyed by the protocol. The system places redemption requests in a queue and matches them with new mint requests to facilitate fast processing. This approach may still require a certain waiting period for the user initiating the redemption. However, If the user wishes to redeem immediately, they can swap through the liquidity pool of vFIL/FIL on Bifrost.
• vFIL will have various LSD & #DeFi benefits, including trading, lending, and borrowing within Bifrost.

Finally, whilst users can earn staking rewards on their staked FIL, they will have the flexibility in participating in DeFi scenarios with vFIL within native Polkadot Substrate, EVM and Filecoin ecosystems.

What vFIL means for the Filecoin network

vFIL adds the following advantages, besides the FIL holder and Storage Providers benefits:

• As the capital threshold for storage providers decreases, more storage providers will join the network, boosting the overall computing power of the Filecoin network.
• vFIL will facilitate increased FIL staking in the network, improving the consensus security of the Filecoin network.
• They’ll write the delegation algorithm to skew delegation towards storage providers in regions with less arithmetic power to improve the balance of Filecoin’s arithmetic power in the geographic distribution and promote the arithmetic democracy of Filecoin.

The vFIL Launch Details

The vFIL issue based on the Bifrost SLP protocol and it will be implement in two phases:

Phase One – The Multi-Signature Phase

We’ll deploy vFIL using a multi-signature account on Filecoin and an off-chain EVM. The user will transfer FIL to the multi-signature address on the Filecoin chain. The off-chain EVM will notify the SLP module on the Bifrost chain to mint vFIL for the user. The amount minted depending on the current swap rate.

The multi-signature address will delegate the FIL to the storage provider, encapsulate the sector, and start generating revenue. During the multi-signature phase, the vFIL will liquid staking a hard top. Upon reaching the hard top, staking vFILs becomes impossible.

Phase Two – The FVM Phase

FVM is a virtual machine environment based on the Filecoin network. FVM went live on the Filecoin network on March 14. Allowing developers to deploy smart contracts on the Filecoin network directly based on FVM. VFIL will enter the second phase after they complete the development of the corresponding contracts. Which they’ll achieve full decentralization of vFIL based on FVM contracts. At that point, we’ll remove the vFIL minting hard top.

vFIL will obtain the investment opportunities of Filecoin and storage arithmetic to Polkadot and the broader chain-wide ecosystem. As an interest-bearing asset, vFIL will be a better underlying asset in the DeFi world, and vFIL holders will potentially reap multiple benefits in multi-chain DeFi.

About Filecoin

Filecoin a peer-to-peer network that stores files, with built-in economic incentives & cryptography to ensure files are store reliably over time. In Filecoin, users pay to store their files on storage providers. Storage providers are computers responsible for storing files and proving they have stored them correctly over time.

Website | Twitter |

Source

REQUEST AN ARTICLE

The post Bifrost is Launching vFIL appeared first on Smart Liquidity Research.

What is Filecoin?

Using the Filecoin protocol, anyone can lease out unused data storage on their computer. Any member of the public can also purchase network storage. A massive data storage facility can be established by inviting users worldwide to participate in the network. It will be necessary to meet the rising demand as increasing systems are digitized.

The creators of this project assert that if it gains enough traction, it will surpass all other online data storage options in terms of speed and cost. And because it wouldn’t rely on a single entity, governments or other entities wouldn’t be able to stifle its file sharing.

This is because miners, who provide computational power to keep Filecoin running, are responsible for maintaining the currency secure and functional. In addition, filecoin miners are rewarded in cryptocurrency by providing customers with access to storage. In return, those who use Filecoin must pay miners to keep, access, or share their data.

The Filecoin network is built upon the Interplanetary File System, another decentralized file-handling mechanism (IPFS). There are numerous parallels between the two systems, but the key difference is that miners cannot profit from IPFS even though it is accessible to users. So while using Filecoin does cost money, it also has the potential to bring in income.

Traders and investors should know that Filecoin is one of many protocols promising a cryptocurrency-powered decentralized file-sharing and storage solution. For example, Storj and Siacoin are two competing protocols. In 2020, Storj expected its network capacity to exceed 100 PB, while Siacoin predicts it will reach 2 PB. The initial coin offering for Filecoin in 2017 raised $205.8 million, making it one of the largest investment rounds in the cryptocurrency sector.

How Does Filecoin Work?

Filecoin is a decentralized file-sharing platform similar to Dropbox. Users must pay a miner to store information on the Filecoin network. The price they pay is set by supply and demand in a free market wherein miners compete to provide the cheapest possible data storage. As a result, Filecoin predicts that decentralized data storage will become “hypercompetitive,” making it more affordable than cloud services like Amazon Web Services.

On the other hand, Miners are motivated to participate in the storage system because they can earn Filecoin tokens as a reward from the network. The more space they make available to the network, the more likely they will be rewarded for their efforts.

However, there is a cost associated with reaping these benefits. To demonstrate to the system that they are retaining the information they claim to be storing reliably over time, miners must conduct several computationally costly processes (called proofs).

If they can do this consistently and offer enough space, they will be able to mine new blocks on the Filecoin blockchain, earning both the system reward and the transaction fees.

🔸Replication and Spacetime Proof

The technology employs procedures known as proofs to ensure that all participants in a blockchain can concur on new transactions. For example, miners must provide evidence that they have performed many calculations to add new trades to the Bitcoin blockchain and claim freshly minted Bitcoin. This is known as a “proof-of-work.”

Filecoin employs a pair of novel proofs to ensure that miners are legitimately saving the information they claim to have. Using Proof-of-Replication, a miner must prove that it has committed the specified number of copies of data. Using Proof-of-Spacetime, a miner demonstrates that they have kept the data for the required time. Users can have faith in miners because of these combined proofs of possession.

🔸Filecoin Storage Markets

Filecoin employs these tools to create a storage market where users who need to store data may place bids on storage space provided by miners. Provider miners will be evaluated not just on the storage space rates but also on the consistency with which they meet those prices. Filecoin’s Storage Market Users can make offers and requests, just like on a traditional money exchange.

🔸Filecoin Mining

Users who provide storage space are the primary type of Filecoin miners. To participate in the Storage Market, one must plug in a hard drive, launch the Filecoin client, and begin selling storage space. The term “Storage Miners” describes this type of miner. However, there’s also a subset of Filecoin miners termed retrieving miners and services. Users pay these miners to retrieve information and perform services that expedite data transport, such as caching or serving as a node in a content delivery system.

Is Filecoin Crypto a Good Investment?

In addition to the ease with which Filecoins can be purchased and stored, there is a wide variety of wallets from which to choose. Do your homework or consult a financial advisor before making any significant investments. You should weigh your risk tolerance, market knowledge, the diversity of your portfolio, and the possibility of financial loss before making any decisions. Remember that you should only invest what you can manage to lose and that there is no assurance that your investment strategy will be successful in the future.

What is the future of Filecoin?

Businesses like Amazon and Google Cloud Storage make a lot of money from offering cloud storage. This reflects the high level of interest in the market. Trusting decentralized services could result in significant cost savings for consumers. This funding would have an immediate and far-reaching beneficial effect on people’s lives while simultaneously stimulating the economy by providing capital to people and small enterprises.

Conclusion

Cryptocurrency market analysts and the token’s technical analysis point to a bright future for Filecoin. For this reason, analysts need help predicting future coin prices, including predictions for the FIL coin.

The post What Is Filecoin and How Does It Work? appeared first on Smart Liquidity Research.

Within Talken.io applications, there will be a large of NFT-related data and server logs that require the secure and long-lived storage. Therefore, Talken officially joined the FIL+ Program launched by Protocol Labs and was granted 5PiB DataCap early in 2022.

Talken Joins FIL+ Program, Using the DataCap granted, Talken has successfully transferred nearly 10TiB data and made storage deals with the storage providers of Filecoin network last month. After completing the POC (proof-of-concept) stage, Talken.io will work more closely with all parties in Filecoin Plus Program and onboard PB-scale data to #Filecoin network by the end of this year to guarantee its interoperability and security.

About Filecoin Plus Program

Built on IPFS, Filecoin Plus Program aims to make Filecoin a more decentralized storage network for humanity’s most important information. By creating an incentivizing mechanism, this program benefits all participants, including notaries, clients, and storage providers etc. through providing Datacap that can spend to make storage deals on blockchain.

About Filecoin

Filecoin is an open-source cloud storage marketplace, protocol, and incentive layer. Filecoin includes a blockchain and native cryptocurrency (FIL). Also, Filecoin facilitates open markets for storing and retrieving files, which will benefit both users and storage providers. Therefore, It is a peer-to-peer network that stores files reliably because users can verify that their files are storing correctly by looking at proofs on Filecoin’s blockchain.

Website | Twitter

About Talken

Talken is a safe and easy-to-use decentralized multi-chain NFT and cryptocurrency wallet that supports Ethereum, Solana, Klaytn and etc. Talken has an in-app purchase functionable NFT marketplace that has many famous artists and brand collaboration NFTs. With the built-in Web3 browser, anyone can conveniently browse various Web3 apps in Talken.

Website | Twitter

SOURCE:

https://talken-io.medium.com/talken-officially-joined-the-fil-program-366764a1b1ce

The post Talken Joins FIL+ Program appeared first on Smart Liquidity Research.

The collaboration will see the support of Filecoin for Metacity in decentralizing client data in the open metaverse. In addition, Filecoin is the leader in decentralized storage networks and provides a foundation to store humanity’s most important information. Therefore, Filecoin provides an alternative to an essential web service: making information and data perpetual, but in a decentralized way. Moreover, the cost of data storage is far lower than centralized enterprises today.

About Cloud Rendering Technology developed by House3D

Cloud Rendering Technology was developed by House3D for 5 years, and has been used to render millions of design renders per year, resulting in thousands of design concepts every day.

Also, its software is used by thousands of designers, both amateurs and professionals, and is officially used as a training tool in several Vietnamese architecture universities.

Collaboration Benefits

Metacity is planning to expand the rendering infrastructure around the globe. Anyone who has a powerful enough GPU can be rendering-service-provider (RSP). Firstly, Metacity will use Filecoin technology to eliminate the limits of storage and networking connections. Secondly, the collaboration enables Metacity’s users to store their data on a decentralized network with cost savings. Finally, Metacity will have a chance to carry out P2P Decentralized Rendering that enables any user device to be an RSP using our Proof-of-Rendering mainnet.

Metacity partners with Filecoin to Metacity aims to unlock benefits for users regarding decentralized data storage.

About Filecoin

Filecoin, the world’s largest decentralized network, allows users to store, request, and transfer data via a verifiable marketplace. Also, Filecoin is completely open-source, enabling people from all over the world to participate. In addition, Filecoin protocol runs on an advanced and novel proof system — a combination of Proof of Spacetime (PoSt) and Proof of Replication (PoRep), to provide unmatched efficiency and reliability.

Filecoin’s advanced technology provides a robust foundation to store the world’s most valuable data sets. An alternative to costly cloud storage, the Filecoin network offers efficiently priced and geographically decentralized storage, minimizing financial barriers and allowing users to take advantage of its unmatched network capabilities.

Website | Twitter

About Metacity

Metacity aims to be the first Build2Earn Citiverse ecosystem, powered by House3D and Icetea Labs.

It is a striking 3D city simulated metaverse developed as a co-creation platform that allows everyone to create their dream living space in exciting Build2Earn and Design2Earn gameplay, enjoy free time with Citiverse games, as well as immerse in spectacular 3D/VR experiences with friends.

Website | Twitter

SOURCE:

https://medium.com/metacity-official/metacity-partners-with-filecoin-f5402220071a

The post Metacity Partners with Filecoin appeared first on Smart Liquidity Research.

Anchorage’s lending program provides Filecoin to Storage Providers on the network. These are the nodes that store data. For a Storage Provider to operate on the Filecoin network, they must purchase and operate storage equipment while also posting Filecoin as collateral. As a result, the capital requirement for Storage Providers is high, and Anchorage helps more providers participate through our lending facilities.

Anchorage is also the financing partner for the Filecoin Storage Provider Accelerator (ESPA), which is a 7-month intensive program that teaches storage providers how to operate in Filecoin.

For borrowers

Filecoin lending program allows Storage Providers to expand their operations in a capital efficient manner, supporting the growth of the network. Anchorage will lend to creditworthy providers across the globe seeking at least 100,000 Filecoin.

For Filecoin holders

Institutional Filecoin holders can also participate in Anchorage’s lending program. As a lender in the program, you’ll be able to earn one of the highest Filecoin yields on the market.

The role of storage providers

“Anchorage has been an incredible partner even prior to our mainnet launch. This new lending program provides Storage Providers access to more FIL so they have the ability to take advantage of the 10x block rewards when storing useful data. For Filecoin holders it is a unique way to earn double-digit rewards while powering the growth of a larger decentralized network. A win-win for both ecosystems.”

— Stefaan Vervaet, Protocol Labs.

About Filecoin

Filecoin was created to decentralize secure data storage and open web access to billions of people around the world by addressing data sovereignty, privacy, and security controls.

About Anchorage Digital

Anchorage Digital is advancing institutional participation in the digital asset class.

📰 INFO

https://medium.com/anchorage/filecoin-lending-with-anchorage-digital-e314455a439d

The post Filecoin Lending with Anchorage Digital appeared first on Smart Liquidity Research.