Introducing SFT, rSFT, SPD, and rSPD in the SFT Protocol Ecosystem
The SFT Protocol is a dynamic ecosystem consisting of four distinct tokens: SFT, rSFT, rSPD, and SPD. Each token serves a unique purpose within the protocol, contributing to its functionality, liquidity, and overall growth.
What is SFT?
SFT, short for Securitized inFrastruture Token, is a token built on both the FEVM and BSC chains. It represents staked FIL within the blockchain, encompassing both the initial deposit and staking rewards. SFT tokens are minted when FIL is deposited and are burned upon FIL redemption. The quantity of SFT is pegged at a 1:1 ratio with the FIL staked on the BSC chain.
SFT can be utilized much like FIL, enabling users to earn staking rewards while benefiting from DeFi products, yielding additional returns, and more. With favorable liquidity, SFT holders have the flexibility to engage with their tokens as they see fit — trading, selling, swapping, or investing in DeFi projects.
Process of SFT Minting
When users stake FIL tokens in a node, the smart contract within the SFT Protocol v2 automatically mints SFT tokens in a 1:1 ratio. This process occurs instantaneously, and once the blockchain validates the transaction, the user’s wallet address will promptly receive the corresponding number of SFT tokens. It’s important to note that when SFT is used to redeem FIL, an equivalent number of SFT tokens will be burned. This redemption process also follows a 1:1 ratio, meaning that 100 SFT tokens can be used to redeem 100 FIL, all without any transaction fees.
What is rSFT?
rSFT is currently issued on the Filecoin chain, representing staked FIL within the Pool liquidity pool. Just like SFT, rSFT tokens are minted upon FIL deposit and burned upon FIL redemption. The quantity of rSFT tokens is aligned with FIL staked on the Filecoin chain at a 1:1 ratio. rSFT serves as the liquidity provider (LP) equity certificate for FIL providers within the liquidity pool.
What is SPD?
SPD, which stands for SFT Protocol DAO, represents the governance token for the entire SFT Protocol. While specific issuance details and content are yet to be determined, SPD will play a crucial role in the governance and decision-making processes of the protocol.
What is rSPD?
rSPD functions as an early utility token within the SFT Protocol, earned through community activities and marketing campaigns and airdrops on the BSC chain. It is designed for future conversion into SPD tokens at a 1:1 ratio.
For detail information about rSPD, please refer to this article👇.
In conclusion, SFT, rSFT, SPD, and rSPD collectively contribute to the diverse and vibrant ecosystem of the SFT Protocol, enhancing its functionality, promoting participation, and enabling users to harness the potential of decentralized finance.
👋 About SFT protocol
SFT Protocol is a Web 3 infrastructure protocol that accelerates Web 3 development through LSD, AI data storage, privacy computing, optimization algorithms, and collaboration with global research institutions. SFT offers LSD products that focus on storage and computing blockchains, including Filecoin, while building Web3 infrastructure ecosystems.
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