GLIF Docs
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V2 English
  • Introduction
    • Quick Guide
    • GLIF Overview
    • Protocol Users
  • For Liquidity Providers
    • Benefits for token holders
    • GLIF Reward Mechanism - iFIL
    • Exit - Withdraw FIL
    • Asset Security
    • Risks
  • For Storage Providers
    • Benefits for Storage Providers
    • SP Liquidation Values
    • Borrowing Limits & DTL
    • Uses of Borrowed FIL
    • Liquidations
    • Borrowing Cost
    • Manage Miner Actors with Agents
    • Guarantor Model
  • Developer Resources
    • GLIF SDK
    • GLIF CLI
    • Deployed Contracts
  • TROUBLESHOOTING
    • FAQ
      • FAQ for Liquidity Providers
        • About GLIF
        • Deposit FIL
        • Withdraw FIL
        • Risk
        • Wallet Connection
        • GLIF Points
        • Miscellaneous
      • FAQ for Storage Providers
        • Borrow and Withdraw FIL
        • Key Financial Ratio
        • Payment
        • Liquidation
        • Agents
        • Transaction Issue
    • TUTORIALS
      • For Token Holders
        • Wallets
          • How to find your corresponding 0x/f410 wallet address
          • How to obtain a Ledger wallet as the intermediary wallet
          • How to obtain a burner wallet as the intermediary wallet
          • How to obtain a FilSnap wallet as the intermediary wallet
          • How to connect your wallet to Filecoin Mainnet
          • How to transfer FIL from a 0x address to an f1 address
          • How to create a multisig wallet on GLIF
        • Using the Pool
          • Deposit FIL into GLIF to earn rewards
          • How to deposit Filecoin from a hardware wallet with GLIF
          • How to deposit FIL to GLIF using multisig wallet
          • Withdraw FIL from GLIF
          • How to withdraw FIL from GLIF using a multisig wallet
        • Transfer FIL to/from exchanges
          • Transfer FIL between exchange and GLIF
          • Binance
            • Transfer FIL from Binance to GLIF
            • Transfer FIL from GLIF to Binance
          • MEXC
            • Transfer FIL from MEXC to GLIF
            • Transfer FIL from GLIF to MEXC
      • For Storage Providers
        • GLIF Agent Website Tutorial Part I— Preparation Setup
        • GLIF Agent Website Tutorial Part II — Create your Agent
        • GLIF Agent Website Tutorial Part III — Add Your Miner
        • How to withdraw FIL from the agent to an exchange at GLIF
      • How to Claim $GLF Airdrop
    • Glossary
    • Contact Us
  • Governance
    • Governance
    • Delegation
    • Proposals (GIPs)
    • Voting Process
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On this page
  • About iFIL
  • Calculation of iFIL
  • Basic Example:
  • Source of rewards
  • Reward rates
  • See your rewards
  1. For Liquidity Providers

GLIF Reward Mechanism - iFIL

Liquidity Providers earn rewards by holding iFIL tokens

About iFIL

iFIL is GLIF's reward token - an ERC20 token deployed on FEVM. Liquidity Providers (LPs) hold iFIL tokens to earn rewards.

When an LP deposits FIL into the pool, they receive a proportionate amount of iFIL tokens in return, based on the current price of iFIL. As Storage Providers (SPs) accrue interest by borrowing FIL, the price of iFIL increases.

LPs can exchange iFIL back to FIL when they choose to withdraw. iFIL can be transferred to other wallets, traded on secondary markets, and used in other DeFi protocols.

Calculation of iFIL

The amount of FIL that can be redeemed with 1 iFIL token is calculated by dividing the total accrued assets in the pool by the circulating supply of iFIL tokens. Therefore, the price of iFIL increases every block.

The iFIL price is computed as:

iFILPrice=PoolTotalAssets/iFILCirculatingSupplyiFIL Price = Pool Total Assets / iFIL Circulating SupplyiFILPrice=PoolTotalAssets/iFILCirculatingSupply

Where:

PoolTotalAssets=LPDeposits+AccruedFees−TreasuryFeesPool Total Assets = LP Deposits + Accrued Fees - Treasury FeesPoolTotalAssets=LPDeposits+AccruedFees−TreasuryFees

Basic Example:

  1. iFIL Price: Let’s imagine a simple scenario where the current price of iFIL is 1 FIL. So 1 iFIL == 1 FIL

  2. LP Deposits: An LP deposits 1 FIL into GLIF and receives 1 iFIL.

  3. SP Borrows and accrues interest: As SP borrows and (over time) accrues interest, meaning the pool's total assets increase.

  4. Value Increase: The iFIL price increases because as more total assets are earned by the pool. If the iFIL value increases by 5%, 1 iFIL is now worth 1.05 FIL.

  5. Withdrawal: The LP can withdraw 1.05 FIL by redeeming 1 iFIL.

Source of rewards

Rewards come from the interest accrued by SPs who borrow FIL from GLIF. The expected interest received from SPs is split proportionately among iFIL holders, and is automatically compounded in GLIF.

From an economic perspective, GLIF implements an accrual basis accounting method. In other words, it counts interest that it is owed from SP as part of its total assets before any payments are made. As a result, GLIF LPs earns rewards every block.

Reward rates

SPs borrow FIL from the pool at a fixed interest rate of 15%.

Only borrowed FIL by SP generates rewards. The borrowed FIL proportionate to the total FIL in the pool is referred to as the pool’s “utilization rate”.

  • Utilization rate is computed as:

UtilizationRate=FILBorrowed/TotalFIL∗100%Utilization Rate = FIL Borrowed / TotalFIL*100\%UtilizationRate=FILBorrowed/TotalFIL∗100%
  • The reward distributed to the LP is computed as:

Reward=InterestRatePaidBySP∗UtilizationRate∗90%Reward=InterestRatePaidBy SP *UtilizationRate*90\%Reward=InterestRatePaidBySP∗UtilizationRate∗90%
  • The 90% factor accounts for the 10% fee taken by the GLIF protocol treasury

See your rewards

iFIL returns are shown in "Tokens section":

PreviousBenefits for token holdersNextExit - Withdraw FIL

Last updated 10 months ago

LPs can check their FIL value of iFIL holdings by connecting wallet to GLIF, or visiting the or page of a particular address.

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