Comprehensive Exploration of SFT Protocol 2.0 (Overview)
In the field of blockchain, Filecoin has gained widespread attention through its unique distributed storage network model. The SFT Protocol was initially applied to Filecoin.💥 The decentralized stake and mining solution proposed by the SFT Protocol aims to provide various participants with a safer, more efficient, and flexible FIL asset management experience through its innovative technical architecture and functional setup.🚀
🙌 Next, we will continuously update this deep analysis series of articles, and together explore the unique components of the SFT Protocol and how they collectively promote the prosperity of the Filecoin network.
1️⃣ Mint & Withdraw
The SFT Protocol has greatly enhanced the convenience of asset management by introducing an automated stake minting mechanism.🎉 Users can directly stake FIL tokens to designated nodes, and the system will automatically mint SFT at a 1:1 ratio. This design makes SFT not only a proof of computing power for FIL holders but also a symbol of rights to profits.👌 In this case, the SFT held by users can be transferred, and the right to profit follows. At the same time, users can redeem FIL in real-time through the withdraw interface, ensuring asset liquidity.
Users who hold SFT tokens can redeem FIL in real-time through the FIL withdraw pool built by the withdraw interface.🙌
2️⃣ SFT Protocol FIL Liquidity Pool
Definition of FIL Liquidity Pool:
The FIL liquidity pool under the SFT Protocol is a liquidity mortgage and leveraged mining liquidity pool established on the Filecoin Virtual Machine (FVM). The protocol allows users holding FIL tokens to earn stable returns without a lock-in period while providing loan services for users who need FIL liquidity.
Users who provide FIL through this protocol will receive compound APY earnings, with a floating income range between 10% and 58%.🏆 In addition, by supplying FIL, users will also receive an rSFT LP certificate, which can be redeemed for FIL at any time at a 1:1 ratio.🔁 The launch of the SFT Protocol provides more choices and opportunities for FIL token holders and demanders, enabling them to earn more rewards and income on the Filecoin network.🌐
Differences from Staking:
FIL staking and withdrawal are realized through an automated staking mechanism of the SFT Protocol. Users can stake FIL tokens to designated nodes and mint SFT at a 1:1 ratio. SFT is not only a proof of computing power for FIL holders but also a symbol of the right to profit.💲 Users can redeem SFT into an equivalent amount of FIL at any time, ensuring asset liquidity, and the SFT held by users can be transferred with the right to profit.
📣 The FIL liquidity pool is a liquidity mortgage and leveraged mining liquidity pool established on the Filecoin Virtual Machine (FVM). Users can deposit FIL tokens into this pool, earn stable income without a lock-in period, and provide loan services for users who need FIL liquidity. By depositing FIL into the liquidity pool, users can earn an annual percentage yield (APY) with a range between 10% and 58%. Users will receive an rSFT LP certificate, which can be redeemed for FIL at a 1:1 ratio at any time, ensuring asset liquidity. Through the FIL liquidity pool, users have the opportunity to earn more rewards and income on the Filecoin network.
3️⃣ Major Updates in SFT Protocol 2.0
Farm: Yield Optimization
One core feature of the SFT Protocol is its “farm” mechanism. The current farm mainly consists of two forms: 6-month fixed-term staking and flexible-term staking. In the 6-month fixed-term farm, users only need to stake SFT tokens to the farm pool to enjoy daily floating yields with an annualized return rate ranging from 20% to 35%, and the staked SFT tokens are locked for 6 months. On the other hand, the flexible-term farm provides a fixed annualized return of 10%, and users can redeem SFT tokens without any time limit, greatly enhancing asset flexibility.
Lending
To further enhance the efficiency of FIL utilization, the SFT Protocol introduces an innovative lending feature. Users can borrow FIL based on the quantity of their staked SFT tokens, with a maximum borrowing coefficient of 60% and no need to bear interest on the loan. This design not only improves FIL’s utilization efficiency but also avoids the pressure of high-interest rates on users. More detailed explanations about lending will be presented in subsequent articles.
Cross-Chain Bridge
The SFT Protocol successfully breaks down barriers between blockchains by establishing a cross-chain bridge between BSC and Filecoin, allowing users to perform asset operations between the two chains and flexibly respond to various market situations.
RPC Cloud
Finally, the SFT Protocol provides RPC cloud services. The RPC cloud can provide free RPC interface services for multiple public chains to meet the diverse needs of developers. Developers can access RPC endpoints through HTTPS or WebSocket to obtain important statistical data and conduct self-testing, greatly promoting the development and innovation of blockchain applications.
4️⃣ Summary
Overall, SFT Protocol 2.0 brings a fresh look to the staking and mining model of the Filecoin network through its unique design and features. This forward-thinking design not only enhances asset liquidity, enabling participants to manage assets more flexibly but also provides a powerful driving force for the prosperous development of the Filecoin network. In the future, the SFT Protocol is expected to further promote innovation and development on the Filecoin network, creating a more open, efficient, and fair decentralized network.🚀
