Comprehensive Exploration of SFT Protocol 2.0 (Series 1): Exploring the Mechanisms of SFT Minting and FIL Redemption
Introduction:
Among the numerous decentralized cryptocurrency protocols, SFT Protocol 2.0 stands out with its unique design philosophy and innovative technical implementation, leading the way in a new direction for blockchain application development. To gain a deep understanding of its allure, this article will focus on the mechanisms of SFT minting and FIL redemption within SFT Protocol 2.0.🎉
1. Exploring the SFT Minting Mechanism:
The StakingContract plays a central role in the construction of SFT Protocol 2.0. Using this upper-layer smart contract design, FIL holders can initiate Staking and receive corresponding SFT tokens. ⚙The entire process is fully automated by the smart contract, eliminating the need for any third-party endorsement or intervention, thus embodying the essence of decentralization. Consequently, all SFT issuance rights belong solely to the original chain’s FIL token holders, which is a core principle of SFT Protocol 2.0.🧿
1.1 What is SFT?
SFT is a computing power certificate for FIL holders who participate in node mining. To obtain the certificate, holders must pledge their FIL tokens to the Farm. Once pledged, holders gain access to income distribution rights (5:5) and FIL redemption rights (1:1) allocated by all nodes under the SFT protocol. This flexibility makes SFT an important cryptographic asset that can be transferred via wallets, with the income rights transferring accordingly.🔁
The SFT protocol has recently launched an SFT derivatives market. This enables SFT holders to access improved liquidity and asset portfolios through various DeFi tools, such as Farm, Lend, Earn, Swap, and Pool-Liquidity.🌐
1.2 Which Networks and Wallets Does SFT Protocol Support?
The SFT Protocol currently supports the Filecoin FVM and Binance Smart Chain (BSC) networks. The unique characteristics and application areas of these two networks enable the SFT Protocol to be applied and leveraged in a broader scope.
2. Exploring the FIL Redemption Mechanism:
Users who hold SFT tokens can perform real-time FIL redemptions through the redemption page provided by SFT Protocol 2.0. The entire process is free of time limitations and fees. The redemption ratio is 1:1, which means that 100 SFT tokens can be redeemed for 100 FIL tokens.🙌
2.1 Redemption Network:
The redemption network of SFT Protocol 2.0 is currently on the Filecoin — FVM network, with plans for future expansion on the BSC network. Users with SFT addresses on the BSC network must use the SFT cross-chain bridge to transfer SFT to the FVM network before initiating the redemption process. The redeemed FIL tokens will be on the FVM network.👌
Conclusion:
SFT Protocol 2.0 has revolutionized the staking and mining models of FIL with its innovative design and technical implementation. This provides FIL holders with a secure, efficient, and decentralized means of asset management. Additionally, SFT Protocol has launched an SFT derivatives market, offering SFT holders increased liquidity and asset combinations through various DeFi tools. This significantly enhances asset liquidity and usage efficiency.🚀
In future articles, we will delve further into other important mechanisms and functionalities of SFT Protocol 2.0. We hope you continue to follow and support our research and analysis.
