Core of FilUs
Core of FilUs
At the heart of FilUs, there are two main participants who drive the protocol's success and sustainability: Stakers and Storage Providers (SPs). These participants form the foundation of the FilUs ecosystem, playing distinct yet complementary roles in maintaining liquidity and expanding decentralized storage.
Stakers
Stakers are FIL token holders who contribute to the FilUs liquidity pool by staking their FIL tokens. In return for providing liquidity, stakers receive FuToken, the native token of FilUs, proportional to the amount of FIL they stake. The FuToken represents their share in the liquidity pool and accrues value over time as the protocol generates interest from loans given to SPs.
Passive Income Generation: Stakers earn rewards through the appreciation of their FuTokens as the value of the underlying pool grows from the interest payments made by SPs.
Redeem & Withdraw: At any point, stakers can redeem their FuTokens to withdraw their staked FIL, along with any accrued rewards, providing them with flexibility and liquidity. (TODO: more detail about withdraw)
Storage Providers
Storage Providers are essential to the FIlUs ecosystem. Through FilUs, SPs can access the FIL liquidity they need to scale their operations, collateralize storage deals, and sealing more sectors without requiring upfront FIL capital.
Borrowing FIL: SPs can borrow FIL from the FilUs liquidity pool based on their total collateral value(TODO: link to the calculation of the value). The amount they can borrow is determined by their total collateral, which includes the initial pledged balance, current available balance, and future income ownership.
Interest Repayment: SPs are required to repay the borrowed FIL along with interest. These interest payments are distributed back to the liquidity pool, rewarding the stakers and maintaining the health of the ecosystem.
How FilUs Works
FilUs operates through a seamless cycle between stakers and storage providers, ensuring liquidity is constantly flowing to where it is needed most in the Filecoin ecosystem.
Staking FIL: FIL token holders stake their FIL in the FilUs liquidity pool. In return, they receive FuTokens, which represent their share of the pool. The staked FIL provides liquidity for the protocol, enabling it to fund SP loans.
Earning Rewards: Stakers passively earn rewards through the appreciation of their FuTokens, as SPs borrow FIL and make interest repayments. The interest generated by SP activity increases the value of the liquidity pool, benefiting all stakers.
Borrowing FIL: Storage Providers can borrow FIL based on the total collateral they pledge. SPs use this borrowed FIL to scale their storage operations without needing upfront liquidity.
Interest and Repayment: After borrowing FIL, SPs are responsible for repaying the principal loan amount with interest. These interest payments flow back into the liquidity pool, where they are distributed as rewards to the stakers, completing the cycle.
The entire process is governed by smart contracts that ensure transparency, security, and fairness in how liquidity is distributed and rewards are earned.
TODO: Draw a diagram for the Cycle
Last updated