Project Background

With the launch of FIL, Cosmos, Polkadot, and other projects and the development of the ecology, token holders can participate in the system consensus only by staking. Throughout the process, token holders only need to run certain standard servers or entrust professional verifiers to start mining. Early public chains, whether PoW or PoS, integrated incentives to encourage more participating node operations. Therefore, to lock more initially distributed tokens to strengthen system security, Stakers bear a certain amount of time and opportunity costs. If the incentives are less at the beginning, the main network will face serious security threats. Token holders of the public chain can initiate unlocking at any time, but tokens cannot be traded during the unlocking period, and holders still cannot avoid the risk of token value fluctuations at this stage. This is a contradiction between TokenStake security and token liquidity, which has caused many people to dare not mortgage to the public chain system.

Therefore, it was decided to create a public chain asset that is locked by stake tokens in the medium and long term, and provide a decentralized protocol to enable the free circulation of locked assets. Liquidity is solved by minting SFT tokens. And at the same time mortgaged to the original tokens on the chain, you can obtain stake income at the same time, and ensure the security of the public chain system. In the process of supporting basic public chains such as FIL, the SFT Protocol will establish a large amount of infrastructure. On this basis, the cloud node API interface will be gathered to provide various cloud services required to build the future Web3 and Metaverse, and flexibly satisfy customers. Demand for privacy computing, storage solutions, and high-performance GPU computing.

Since the official launch of Filecoin in 2020, a large amount of community consensus has been established. However, FIL physical mining includes staked coins, GAS, linear release mechanism, mining efficiency, etc. When miners provide hardware equipment, they also need to provide a certain amount of pledged coins. At the same time, the mining rewards are released linearly Mechanism, the liquidity of FIL is locked for a long time, and participants will face market volatility risks with weak anti-risk capabilities. Therefore, the SFT Protocol proposes a solution based on the application of the SFT Protocol in the Filecoin network. Token holders exchange assets equivalent to SFT tokens of equivalent value through staking. The user stakes 1 FIL and will get the equivalent of the original token. SFT (currently 1:1), after the lock-up period ends, users can choose to destroy SFT and get back the staked FIL. On the SFT Protocol, users can stake FIL at any time, flexibly trade and redeem it, and withdraw at any time in the middle. The goal of the SFT Protocol is to build a liquidity mining pool on Filecoin and realize sustainable computing power income. In this way, FIL holders will have a stronger ability to resist market fluctuations, more flexible participation methods, and achieve investment income maximization.