Learn about the latest developments in the Filecoin DeFi ecosystem in one article
Original source:Filecoin Network
On March 14, 2024, the Filecoin community celebrated the first anniversary of the release of the Filecoin Virtual Machine (FVM). FVM brings programmability to Filecoin’s verifiable storage and opens up a unique DeFi ecosystem around improving on-chain capital markets. For example, liquidity staking is an important component of Filecoin DeFi.TVL has exceeded $500 million. As the network develops, multiple key infrastructures such as AMMs, Bridges, Oracles, and Collateralized Debt Positions (CDPs) will jointly drive DeFi development in 2024.
Read this article to learn about Filecoin’s latest DeFi projects and look ahead to the future.
DeFi development on FVM
Automated Market Maker
The Automated Market Maker (AMM) connects Filecoin with other Web3 ecosystems to enable on-chain exchange, deeper liquidity, and new LP opportunities.
Decentralized trading platform:✅
Recently, the leading decentralized trading platformUniswap v3(passOku.tradeandSushi) integrates with Filecoin by deploying on FVM. Oku Trade’s interface allows Uniswap users to easily swap assets and provide liquidity on Filecoin. This allows FVM developers to easily access natively bridged USDC and ETH assets on the Filecoin network, thereby expanding Filecoin’s reach. As a foundational DeFi primitive, DEX also opens the door for non-native applications to leverage Filecoin’s powerful storage and computing hardware.
interoperable network
Bridges:✅
Bridges helps bring liquidity to DEX and AMM on FVM. For developers building on FVM, Bridges connects Filecoin’s verifiable data with tokens, users, and applications on any chain, ensuring maximum compatibility for DeFi protocols. to this end,AxelarandCelar’s messaging and token bridging solutions were added to the Filecoin network immediately upon launch of FVM.
Today, AMMs Uniswap v3 and Sushi, along with several other DeFi applications, have native bridges to Filecoin with the help of cross-chain infrastructure powered by Axelar and Celar.
Liquidity Staking
Liquidity Staking Agreementhas been a major promoter of Filecoin DeFi, playing a vital role in developing and improving on-chain capital markets. Today, nearly 17% of the total collateral locked by storage providers (approximately 30 million FIL) comes from FVM-based protocols such asGLIF ( 52% )、STFIL(15%), SFT protocol (10%) andOther agreements( twenty three% ). These protocols increase access to capital to storage providers while also providing token holders with better access to yield.hereRead more to learn how Filecoin staking works.
GLIF Points: 🔜
GLIFis the leading protocol on Filecoin with a TVL of over $250 million. Taken together, it has surpassed the largest liquidity staking protocols on L1 chains such as Avalanche. As of the time of writing this article (March 6, 2024), 32% of FIL shares in the GLIF liquidity pool are in itsAnnounceDeposited shortly after the launch of GLIF Points (February 28, 2024), GLIF Points may be the precursor to governance tokens.
Typically, to participate in the rewards program, GLIF users must deposit FIL and mint GLIF’s native token, iFIL. Likewise, to incentivize community participation, the SFT protocol launched a points program based on its governance token in 2023.
Overall, we look forward to how the popular points gameplay in Web3 ecological DApps will become a catalyst for decentralized governance and incentivized participation in Filecoin DeFi DApps.
New staking mode: 👀
Protocols that try new models to inject liquidity into the ecosystem are constantly emerging, but the pace is not slowing down. Two projects worth keeping an eye on are Repl and FILLiquid:
Repl.fiThe concept of “re-pledge” is introduced. In re-staking, the FIL staked by the SP is tokenized into Repl’s native token pFIL and used for other purposes, including earning rewards. Replenishment materially increases the utility of locked assets, thereby reducing SP opportunity costs. In just a few months since launch, Repl’s TVL has soared to $30 million.
FILLiquidCurrently on the testnet, an algorithm-based fixed fee model, rather than a traditional interest rate model, is being built for SP’s FIL lending business. The separation of payment and deposit terms is expected to drive long-term staking and lending activities for token holders and SPs, respectively, resulting in cost savings and greater efficiency.
price oracle
Oracles are services that provide external data to smart contracts and are critical blockchain infrastructure necessary for DeFi applications to develop and interact with the real world.
Python Network:✅
PythA price feed service was recently launched on FVM. The integration gives FVM developers access to over 400 live market data sources while exploring opportunities to build on top of the Filecoin storage layer. DeFi applications benefit from Pyth’s low-latency, high-fidelity financial data sourced directly from global institutional players such as exchanges, market makers, and trading firms.
Filecoin also gotTellorSupported by Tellor, an optimistic oracle that allows FVM-based applications to access price feed data.
Collateralized Debt Position (CDP)
As DeFi activity on Filecoin continues to rise, Collateralized Debt Positions (CDPs) will add more dimensions to other decentralized applications built on FVM.
Chymia.Finance：🔜
Chymiais the upcoming FVM DeFi protocol. As the number of liquid staked tokens (LST) on Filecoin continues to increase, CDP will expand the utility of locked tokens by generating stablecoins. Through Chymia, LST holders can earn higher yields while using it as collateral to gain greater liquidity.
Ajna：🔜
Ajna is a non-custodial, peer-to-peer, permissionless lending and trading system that operates without governance or external price feeds. As a result, any ERC 20 on FVM will be able to set up its own lending pool, making it easier for new developers to build utility for their protocol.
pay
Next to storage services on Filecoin, FVM enables developers to tie DeFi payments to real-world primitives on the network. Filecoin’s core economic flows are built in an intuitive way to enable paid services to be settled on-chain. Station and Saturn are two well-known Filecoin services that have successfully implemented payments via FVM.
Filecoin Station：✅
Stationis a downloadable desktop application that uses idle computing resources on the Station DePIN network to run small jobs, with network participants being rewarded with FIL earnings. Currently, Station operatesSparkandVoyager modules, both of which focus on improving web retrieval capabilities. In February this year, approximately 1,900 Station operators were awarded FIL for their participation.
Filecoin Saturn：✅
SaturnIt is a decentralized CDN network based on Filecoin that also uses FVM to pay FIL to retrieval nodes on the network. In 2023, Saturn has an average of more than 2,000 profit nodes (retrieval providers on the network that receive FIL) serving it.
Decentralized options
As liquidity continues to increase, options have become another emerging product in DeFi. Options help to buy or sell an asset at a predetermined price at a future date, providing token holders with protection against price fluctuations and the opportunity to speculate on market movements.
Thetanuts：✅
Currently, decentralized on-chain options protocolsThetanuts FinanceSupport Filecoin. The platform allows FIL holders to access returns on their holdings through covered call options. Thetanuts FIL covered call vaults are cash settled and run every two weeks.
wallet
To use dApps on FVM, users need to be on f 410 or0xFIL is held in the wallet address of type. Over time, many Web3 wallets such asMetaMask、FoxWalletandBraveAlready support 0x/f410 address. MetaMask alsosupportLedger. In this way, you canLedgerHold funds in and interact directly with FVM.
Additionally, exchanges like Binance that natively support FEVM greatly reduce the complexity for FVM builders. For more information on the latest wallet upgrade, please visitFilecoin TLDR web page。
future outlook
The near-term impact of the various integrations between AMM, Bridge, and CDP is obvious, and that is the influx of liquidity into the Filecoin ecosystem. As the number and diversity of DeFi protocols on Filecoin increases, it will bring deeper liquidity. The growing DeFi economy, coupled with more services being brought on-chain and utilizing FVM for payments, will increase network revenue and utility across the board. We expect that the strong traction of DeFi will expand the scale of Filecoin as an L1 ecosystem, and core services such as storage and computing will become the pillars of the decentralized Internet.
focus on@Filecointldr account, learn about the latest developments in Filecoin.
Many thanks to HQ Han and Jonathan Victor for their reviews and valuable comments, as well as all ecosystem partners and teams for their timely input.
