SFT Protocol: A new approach to unleashing Filecoin’s potential through the use of FVM and LSD.
SFT Protocol is a liquid staking protocol that solves the staking liquidity problem for proof-of-stake blockchains such as Ethereum, Polkadot, and Filecoin. Through a fully permissionless and decentralized ecosystem, SFT Protocol allows users to stake their tokens and receive corresponding staking derivatives that can be freely traded or used in DeFi applications.
SFT Protocol offers cloud node API and equipment services, with the goal of being the fastest and most reliable Web3 infrastructure provider. Through its global node network, SFT Protocol connects developers, apps, and users to various blockchains, enabling seamless integration of Web3 functionalities.
What is FVM?
FVM is a smart contract platform that uses Ethereum-compatible tools and languages for deploying decentralized applications (dApps) on top of Filecoin. This platform leverages Filecoin’s storage capabilities to provide a scalable, secure, and low-cost environment for dApps.
FVM was launched on Filecoin’s mainnet on March 15th, 2023, through an upgrade called Hygge. FVM introduces EVM compatibility to Filecoin, making it a Layer 0 public chain that integrates data storage, smart contract deployment, and dApp development.
What is LSD?
LSD stands for Liquid Staking Derivatives. These tokens represent the staked assets in Proof of Stake blockchains. LSDs allow users to enjoy the benefits of staking without sacrificing liquidity or flexibility. Users can trade LSDs in secondary markets or use them in DeFi protocols to access various services.
The SFT Protocol supports multiple types of LSDs for different blockchains, such as SFT for Filecoin. Each LSD has a 1:1 peg with its underlying asset, meaning that users can redeem their staked tokens at any time by burning their LSDs.
How does SFT Protocol work with FVM and LSD?
SFT Protocol and FVM are collaborating to build decentralized applications, distributed node services, contract protocol management, approval, and collaboration. Users can stake their FIL tokens via SFT Protocol’s Farms module and receive SFT tokens as liquid staking derivatives. These SFT tokens can then be used to interact with FVM-based dApps or other DeFi platforms.
This approach balances the benefits of FIL holders and equipment suppliers, unlocks Filecoin’s blockchain staking liquidity, enables earning income from FIL tokens by staking SFT tokens, and provides access to various Web3 services with SFT tokens. Additionally, users can participate in SFT Protocol’s community governance with SPD tokens, the governance token of SFT Protocol.
Conclusion
SFT Protocol is an innovative project that aims to unleash the full potential of Filecoin. It achieves this by combining liquid staking derivatives (LSD) and the Filecoin virtual machine (FVM). By leveraging SFT Protocol’s products and services, users can enjoy increased liquidity, flexibility, efficiency, and profitability in the Filecoin ecosystem.
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