Borrowing Cost

Rates

GLIF charges 15% APR to Storage Providers (SPs) for borrowing.

The APR has been fixed at 15% for the last 12 months. However, Filecoin's Baseline Reward mechanism has been dropping as power is coming off of the Filecoin network. The GLIF team is currently examining a rate change in accordance with the Filecoin network's decrease in rewards.

Payments from SP get applied to interest first, then principal

When an Agent makes a payment back to the pool, the proceeds of the payment are applied to the interest balance first, and then the principal balance second. Once interest is fully paid off, any additional payments are applied to the SP’s principal balance.

Fee payments accrue over time

Interest is not required to be paid within a specific timeframe; it accumulates over time. This flexibility allows SP to manage their financial resources more effectively by enabling them to pay fees whenever is most convenient.

Earning GLIF points through payment

SP are rewarded with GLIF points each time they make a payment. This incentive is designed to encourage regular and timely payments. Please refer to this blog post for details.