SFT Chain Launching DeFi Staking Liquidity Pool Mining

SFT Protocol
7 min readJan 15, 2024

Contents

  1. Introduction to Mining Liquidity Pools
  2. How High are the Mining Rewards?
  3. How Does it Operate? Where Do the Earnings Come From?
  4. What is the Role of rSPD?
  5. How to Stake
  6. Pool Reserve Funds
  7. rSPD Cross-Chain Bridge between BSC-FEVM

Introduction

The SFT Chain staking liquidity pool is built upon the expansion of DePIN hardware infrastructure and the value capture of rSPD. It operates as a closed-loop Web3 economic growth system, utilizing smart contracts to ensure asset security, instant redemption, and transparent data.

2. How High are the Mining Rewards?

2.1 Mining Spacemesh

Based on the current SMH=1.5U, FIL=6.1U, and 2000T computing power in the Spacemesh event, an estimate can be made for the pool size.

Importantly, as the DePIN infrastructure continues to grow, the computing power of liquidity mining in Spacemesh will be regularly updated and increased in each epoch, following the 2000T benchmark.

2.2 Mining rSPD

2.2.1 Tenfold Mining Rewards

By depositing FIL to mint SFT and staking it in the 6-month term farm, you can begin earning daily rSPD rewards. These rewards are calculated by multiplying your FIL rewards by ten. In other words, if your daily fixed-term staking earns you 5 FIL, you will also receive 50 rSPD rewards.

2.2.2 Double Mining Rewards

By depositing FIL into the Pool liquidity pool to obtain rSFT and staking it in the rSPD mining pool, you will begin earning daily rSPD. These rewards are calculated by doubling your FIL rewards.

It is clear that the overall returns from a 6-month fixed-term stake will exceed option 2.2.2.

2.3 Mining ALEO

As the ALEO mainnet is still not operational, LP mining for ALEO will need to be postponed until its launch. Users have the option to mine either SMH or ALEO, depending on the earnings offered by the mining pool.

3. How Does it Operate? Where Do the Earnings Come From?

3.1 Mining Operational Logic

3.1.1 Mining rSPD

rSPD is distributed to the pool in real-time, based on block height. The amount of rewards received is determined by the proportion of rSFT held by each address. These rewards are distributed immediately upon deposit and can be withdrawn at any time.

3.1.2 Mining SMH and ALEO

Similar to mining rSPD, LPs who stake for mining SMH or ALEO can earn rewards based on the block height and their proportionate share of LP in the pool.

3.2 Where Do Mining Profits Come From?

Regularly staking and providing FIL to the liquidity pool allows users to increase the size of SFT Chain’s hardware infrastructure, thereby gaining more value on the DePIN network. This value accumulation is reflected in rSPD points.

3.2.1 Users contribute FIL to expand the SFT Chain hardware infrastructure.

3.2.2 The DePIN network that has been built is designed to work seamlessly with and expand to additional storage and computational public chains. SFT Chain actively extracts value from these public chains, providing increased incentives to participants of SFT Chain and driving the growth of the DePIN ecosystem. This creates a mutually beneficial closed-loop system where the ecological value capture increases as more participants are motivated to join and contribute.

3.2.3 Users continue to hold the initial amount of FIL deposited, which remains unchanged and can be redeemed at any time, along with other public chain tokens such as FIL, SMH, ALEO, etc.

4. What is the Role of rSPD?

rSPD is a point system on the SFT Chain that is utilized for activity rewards, promotions, and airdrops, among other things. Currently, it is issued on the BSC chain and can be exchanged at a 1:1 ratio for SPD in the future. Once exchanged for SPD, rSPD will be permanently removed.

BSC Contract Address:0x3958BE0c308F9be63F5116aA0Ee92d4531bac21E
FEVM Contract Address:0x97AAe66a1D2a41eAC573397B7a5656a9cF3E5616

4.1 What is the Value of rSPD?

rSPD features: staking, exchange, payment

4.1.1 Exchange: SFT Chain Governance Token SPD

After the launch of the SPD mainnet, users will have the option to exchange rSPD for SPD at a 1:1 ratio. The contract will ensure that the exchanged rSPD is permanently removed.

4.1.2 Payment: DePIN Network Services

Hardware: Rent hardware facilities on public chains such as FIL, Spacemesh, ALEO, Chia, etc.

Services: Pay for services and earn public chain tokens like FIL, Spacemesh, ALEO, etc.

4.1.3 Staking: LP

As a crucial element in the SFT Chain and DePIN network’s value acquisition, rSPD points play a vital role in DeFi mining and LP construction within the closed-loop economy.

4.2 The Different Roles of rSPD on BSC and FEVM Chains

What Does rSPD Do on FEVM?

4.2.1 Participating in LP Mining

To participate in LP Mining, you can add FIL+rSPD in a 1:1 ratio to the liquidity pool on the Pool liquidity pool interface. This will create LP certificates, which can then be staked in the SMH liquidity pool to mine SMH and ALEO.

4.2.2 Participation in Dex

FEVM is fully supported by Sushiswap, and users can add rSPD to the Sushiswap pool to earn transaction fees. In the future, other Dexes will also allow the addition of rSPD.

4.2.3 DePIN Network Services

DePIN Network Services include hardware services such as facility rental and service payment. (See 3.2.2 for more details)

4.2.4 Mining and Airdrops

By staking FIL and rSFT, users can earn rSPD mining rewards and participate in airdrops. More information on these rewards and events can be found in community events and announcements.

What Does rSPD Do on BSC?

4.2.5 Gaming

On the BSC chain, rSPD has various applications in gaming, including lotteries and exchanges.

4.2.6 Community Event Airdrops

On the BSC chain, rSPD is used for various community events, promotions, and rewards to acknowledge and reward participating community members.

4.3 rSPD Destruction Process

The rSPD tokens utilized in gaming and other activities, along with the buy-backs from reserve funds, will undergo destruction. The records of this destruction will be periodically published on the blockchain.

5.How to Participate in Staking

SFT Chain will launch rSPD and SMH/ALEO liquidity mining on the FEVM platform, as well as develop a cross-chain bridge between BSC and FEVM for rSPD.

5.1 rSPD Liquidity Mining

5.1.1 Farm regularly stake SFT to earn 10 times rSDP mining
By pledging FIL to the farm with just one click, while obtaining daily FIL, activate the mining mode of 10 times daily income.

5.1.2 Pool flow pool deposit to earn double rSPD mining

Users deposit FIL into the Pool liquidity pool and immediately receive rSFT in their wallet addresses. They can then stake this rSFT in the rSPD mining pool. Users will earn two types of earnings:

  1. Earnings from FIL deposited in the Pool liquidity pool.
  2. Earnings from rSPD, which is twice the FIL earnings from the Pool liquidity pool.

5.2 Mining SMH/ALEO

How to Obtain LP?

Users can acquire FIL+rSPD in a 1:1 ratio by depositing into the Pool liquidity pool. They will instantly receive FIL-rSPD-LP in their wallet addresses. This FIL-rSPD-LP can then be staked in the SMH/ALEO mining pool, with users receiving either SMH or ALEO as a reward.

LP can be redeemed at any time, with the deposit and redemption amount being the same.

Deposit: FIL:rSPD = 1:1

Redemption: LP = FIL:rSPD = 1:1

Earnings Collection

Earnings are calculated immediately after depositing LP and can be claimed at any time. To claim, simply input the SMH or ALEO address and expect the funds to arrive in the wallet within approximately 20 minutes, depending on the current network conditions.

6. Pool Reserve Funds

6.1 How are Reserve Funds Generated?

Reserve funds are generated from the earnings of FIL deposited by users’ addresses when constructing LP, along with rSPD.

6.2 How are Reserve Funds Used?

6.2.1 Liquidity Compensation

When the usage rate of the Pool exceeds 95%, liquidity will be provided from the reserve funds. Once the utilization rate falls below 95%, the funds will return to the reserve pool.

6.2.2 rSPD Buyback and Burn

Based on market conditions, reserve funds will be used to purchase and burn rSPD. The records of burning will be periodically made public.

7. BSC-FEVM rSPD Cross-Chain Bridge

Through the cross-chain bridge, users can freely transfer rSPD or SFT between the BSC and FEVM chains.

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SFT Protocol

SFT Chain, a 'Chain of Chains', bridges physical infra with Web3, focusing on a DePIN platform that integrates storage, computing, edge CDN , and beyond.