Yield-bearing, synthetic stablecoin. Backed by FIL. Deployed on FVM. https://usdfil.xyz
Yield-bearing, synthetic stablecoin. Backed by FIL. Deployed on FVM. https://usdfil.xyz
Share Dialog
Share Dialog
Subscribe to USDfil
Subscribe to USDfil
<100 subscribers
<100 subscribers
In our previous post, we reviewed different stablecoins types, their pros and cons, and showed the evolution of stablecoin technology.
Today, we are excited to introduce USDfil, the first stablecoin on the Filecoin Virtual Machine (FVM), pegged 1:1 to the US Dollar. USDfil leverages Filecoin’s Proof of Storage and futures contracts to maintain a stable value. By relying on Filecoin’s proof of storage, USDfil is backed by the largest Decentralized Physical Infrastructure Network (DePIN) in the world. This enables transactions on the Filecoin network to be denominated in USD, unlocking a significant primitive that has not existed on FVM until now.
USDFIL opens up new opportunities to every stakeholder and participant in the Filecoin ecosystem:
Storage Providers can receive payments directly in USD on FVM.
Storage Users can conveniently pay for storage in USD.
Speculators can easily hedge against FIL volatility using a USD-pegged token, while also collecting dollar-based Annual Percentage Yields (APY) for holding sUSDfil (staked USDfil).
The Economy at Large gains a new use case for holding FIL, as USDfil is collateralized by FIL.
Investors and Grant Providers can fund projects directly on-chain using USD terms.
USDFIL operates by creating a delta-neutral hedged position when users deposit FIL. Half of the deposited FIL is stored in on-chain instruments, while the other half is hedged through short positions on centralized exchanges (CEXs). This creates a synthetic dollar, USDfil, that maintains its peg to the USD at a 1:1 ratio. The protocol's smart contracts automate this process, ensuring a seamless user experience.
To begin using USDFIL, a user deposits FIL into the USDFILMinter smart contract. The smart contract temporarily holds the FIL while creating a hedged position in the background. Once the hedge is successfully executed, the protocol mints USDFIL tokens equivalent to the value of the FIL deposit, using the market rate at the time of hedging. If, for any reason, the hedge does not execute, the deposit is refunded.
When users wish to withdraw, the process is reversed - hedged positions proportional to their deposit amount are closed. Next, the protocol mints rFIL, a token exchangeable for FIL at a 1:1 ratio. This step is necessary to facilitate quick withdrawals, as the Filecoin blockchain does not reach finality for 900 epochs, or approximately 7.5 hours. We anticipate eliminating rFIL once the F3 upgrade is implemented on FVM.
We want to hear from you! Contact us at treedao@usdfil.xyz about what features or functionalities you’d like to see next from the USDfil protocol. Are you interested in yield opportunities or BTC yield on FVM? Check out our roadmap for more insights.
In our previous post, we reviewed different stablecoins types, their pros and cons, and showed the evolution of stablecoin technology.
Today, we are excited to introduce USDfil, the first stablecoin on the Filecoin Virtual Machine (FVM), pegged 1:1 to the US Dollar. USDfil leverages Filecoin’s Proof of Storage and futures contracts to maintain a stable value. By relying on Filecoin’s proof of storage, USDfil is backed by the largest Decentralized Physical Infrastructure Network (DePIN) in the world. This enables transactions on the Filecoin network to be denominated in USD, unlocking a significant primitive that has not existed on FVM until now.
USDFIL opens up new opportunities to every stakeholder and participant in the Filecoin ecosystem:
Storage Providers can receive payments directly in USD on FVM.
Storage Users can conveniently pay for storage in USD.
Speculators can easily hedge against FIL volatility using a USD-pegged token, while also collecting dollar-based Annual Percentage Yields (APY) for holding sUSDfil (staked USDfil).
The Economy at Large gains a new use case for holding FIL, as USDfil is collateralized by FIL.
Investors and Grant Providers can fund projects directly on-chain using USD terms.
USDFIL operates by creating a delta-neutral hedged position when users deposit FIL. Half of the deposited FIL is stored in on-chain instruments, while the other half is hedged through short positions on centralized exchanges (CEXs). This creates a synthetic dollar, USDfil, that maintains its peg to the USD at a 1:1 ratio. The protocol's smart contracts automate this process, ensuring a seamless user experience.
To begin using USDFIL, a user deposits FIL into the USDFILMinter smart contract. The smart contract temporarily holds the FIL while creating a hedged position in the background. Once the hedge is successfully executed, the protocol mints USDFIL tokens equivalent to the value of the FIL deposit, using the market rate at the time of hedging. If, for any reason, the hedge does not execute, the deposit is refunded.
When users wish to withdraw, the process is reversed - hedged positions proportional to their deposit amount are closed. Next, the protocol mints rFIL, a token exchangeable for FIL at a 1:1 ratio. This step is necessary to facilitate quick withdrawals, as the Filecoin blockchain does not reach finality for 900 epochs, or approximately 7.5 hours. We anticipate eliminating rFIL once the F3 upgrade is implemented on FVM.
We want to hear from you! Contact us at treedao@usdfil.xyz about what features or functionalities you’d like to see next from the USDfil protocol. Are you interested in yield opportunities or BTC yield on FVM? Check out our roadmap for more insights.
No activity yet