STFIL represents a groundbreaking initiative as the inaugural community-driven, decentralized, and trustless liquid staking protocol introduced on the Filecoin Ecosystem (FEVM). Its core mission centers around establishing an inclusive platform for the Filecoin community, facilitating enhanced connectivity between FIL holders and Storage Providers. The ultimate objective is to amplify storage capacity and elevate the quality of distributed storage network services, all while enabling participants to partake in network rewards while enjoying increased liquidity.
STFIL is addressing the challenges of the traditional mining model within the Filecoin ecosystem. STFIL is a solution that addresses some of the hurdles for Filecoin miners. Miners need specialized hardware, professional teams for operation and maintenance, and substantial upfront collateral, including Filecoin tokens. STFIL is connecting all of these parties, including small holders of Filecoin who want to make a return on their Filecoin.
STFIL protocol created a marketplace for the Filecoin ecosystem that is connecting FIL holders of all sizes and types, to those who need FIL to sustain and grow their mining operations.
- STFIL offer inclusivity for FIL Holders:
- No Lock-up Period: FIL holders can stake their FIL at any moment, earning stFIL and rewards. The protocol incentivizes SPs (Storage Providers) to borrow, repay, and attract new stakers via a supply-and-demand-driven rate model.
- Real-time Earnings: stFIL is an interest-bearing token, generating interest continuously, directly reflected in stFIL balances.
- Lower Risk: STFIL minimizes individual impact of penalties and losses within the protocol by pooling them, with SPs being primarily responsible, followed by the risk reserve fund, and finally all stFIL holders in the pool.
- Stable Earnings: Quality SPs and nodes maintain stability and earnings. DAO selects high-quality SPs and engages them proactively in case of node issues.
- Low Threshold: Transparent rules for staking and storage power eliminate the need for users to delve into technical specifics. Participation is possible with almost any wallet, with a minimal threshold of 1 FIL.
- Versatility: The STFIL protocol constantly mints (burns) stFIL, equivalent to staked (unstaked) FIL, enabling users to claim staked FIL rights. stFIL is on par with FIL in value, offering flexibility for rewards, transfers, sales, and collateral across DeFi ecosystems.
- Liquidity Maintenance:
- STFIL adopts a decentralized, market-driven interest rate model, with loan interest rates tied to the funding pool utilization rate. Optimal conditions emerge at 80% utilization, ensuring user returns and liquidity. If utilization exceeds 80%, loan interest rates rise, encouraging repayment and new staking participation.
- The 1:1 exchange rate between stFIL and FIL ensures temporary liquidity shortages during protocol stress. Users maintain confidence that their FIL assets are secure, always convertible to an equal amount of FIL with accrued interest.
- An LP pool for stFIL and FIL on the secondary market mitigates liquidity issues during exceptional circumstances, providing flexibility to SPs.
- Storage Provider Empowerment:
- SPs can delegate node permissions for “leveraged mining” to maximize profits.
- STFIL encourages high-quality SPs, offering loan support to those who complete KYC.
- Safety buffer indexes limit loan withdrawals to safeguard stability.
Want to participate in rewards while helping Filecoin build a more robust network? You can stake directly from your blockchain wallet, bypassing the need for centralized exchange custody. In addition to the wallets listed on Filecointldr.io, Edge.app has added full support for Filecoin as well. You can buy, stake and hold directly from the wallet. Please visit the STFIL.io official website and always DYOR. Filecoin.global does not provide financial advice. Filecointldr.io has a great breakdown (complete with white paper links) of the various Filecoin staking protocols available. And feel free to read our staking articles on Glif and Filet.Finance as each protocol meets different needs. Filecoin is one of the fastest growing blockchains and is truly becoming the backbone of Web3.
