Filecoin’s Ecological Liquidity Leasing Protocol GLIF Completes $4.5 Million Financing, Introducing Rewards Program at the End of the Quarter

Filecoin's Ecological Liquidity Leasing Protocol GLIF Completes $4.5 Million Financing, Introducing Rewards Program at the End of the Quarter

Filecoin's Ecological Liquidity Leasing Protocol GLIF Completes $4.5 Million Financing, Introducing Rewards Program at the End of the Quarter

The Filecoin ecosystem’s liquidity leasing protocol, GLIF, announced on Tuesday that it has completed a $4.5 million seed round led by Multicoin Capital. Other participating institutions include Zee Prime Capital, Dialectic Capital, Fintech Collective, Big Brain Holdings, Fenbushi Capital, Vinny Lingham, Protocol Labs, and Mana Inc. Some angel investors also participated in this financing.

In addition to developing tools to earn FIL revenue, GLIF CEO Jonathan Schwartz stated that these funds will also help expand the protocol’s “liquidity leasing” function, which revolves around the revenue-generating liquidity leasing token iFIL. FIL is Filecoin’s “Gas” token used to pay for data storage and retrieval on the network.

This financing also lays the foundation for GLIF’s upcoming token distribution plan. According to CoinDesk, an insider revealed that the “tentative plan” for GLIF is to distribute tokens based on points.

Liquidity Leasing

GLIF provides a “liquidity leasing” mechanism for Filecoin, which is roughly equivalent to the “liquidity staking” on Ethereum. According to Schwartz, GLIF acts as a bridge between FIL holders seeking to earn revenue and storage providers generating income.

GLIF’s liquidity providers deposit their FIL into a pool and earn rental fees proportionally. Storage providers rent FIL from the pool and pay rental fees to liquidity providers and the protocol. GLIF claims that this mechanism improves capital efficiency between FIL holders and storage providers.

Currently, holders receive iFIL as a native liquidity leasing token, similar to stETH in Ethereum’s liquidity staking protocol, Lido. The value of iFIL increases weekly as interest accrues.

GLIF Points

Schwartz stated that GLIF aims to deploy 100 million FIL to storage providers within a few years. As of the time of writing, 1,600 users have locked in 10 million tokens.

The success of GLIF’s growth strategy may rely in part on its points program, which is expected to launch in the first quarter of this year. According to an article published by GLIF, iFIL holders will accumulate points proportionally based on the rewards they earn from their deposits. Storage providers can also earn GLIF points based on the proportion of rental fees they pay to the protocol.

GLIF stated in the article:

Insiders revealed that GLIF’s “tentative plan” will determine the initial token distribution to users through points.