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
  • What is GLIF?
  • What can I do with GLIF as a FIL Token Holder?
  • Why is GLIF important?
  • I don't understand the usage scenario of GLIF. Why do miners need to deposit FIL in GLIF and borrow FIL back when they are the same token?
  • When SPs borrow from GLIF, what do they use as collateral?
  • Why do SPs need to provide collateral?
  1. TROUBLESHOOTING
  2. FAQ
  3. FAQ for Liquidity Providers

About GLIF

PreviousFAQ for Liquidity ProvidersNextDeposit FIL

Last updated 8 months ago

What is GLIF?

GLIF is the foundational DeFi primitive of - enabling Filecoin token holders to earn sustainable rewards on their FIL by lending (aka “leasing”) it to a diverse pool of Filecoin miners (also known as “Storage Providers”). Storage Providers (SPs) borrow FIL to use as pledge collateral in Filecoin mining, which helps Storage Providers grow and simultaneously improves the security of the Filecoin network. Similar to "liquid staking" solutions for PoS networks like or , GLIF solves a major capital inefficiency on the Filecoin network, and is Filecoin's first and most popular DeFi protocol.

The GLIF brand has been a long-term trusted partner of the Filecoin ecosystem since early 2019, receiving more than 4 million dollars in grant funding from Protocol Labs and the Filecoin Foundation to build critical apps and tools for the Filecoin network. Most notably, GLIF built the first Filecoin web wallet and multisig wallet for Filecoin’s Mainnet launch, which are still widely used today across the ecosystem for employee payments, grants, and general day-to-day operations.

Click to know more about GLIF.

What can I do with GLIF as a FIL Token Holder?

There are a couple ways you can use GLIF as a FIL token holder:

  1. Use our built-in wallet or multisig features - GLIF’s and are used by a large portion of the Filecoin network for sending/receiving/custodying FIL.

  2. Deposit FIL into GLIF to earn rewards. You can read more it .

Why is GLIF important?

Prior to the launch of the (Filecoin’s built-in virtual machine allowing developers to deploy custom solidity smart contracts to the Filecoin blockchain), the network was bottlenecked with capital inefficiencies. Storage Providers had no permissionless, efficient, and flexible way to borrow FIL to use as mining collateral, and the majority of Filecoin token holders had no safe and accessible opportunities to lease FIL to Storage Providers to earn native, sustainable rewards.

GLIF fills the gap between FIL token holders and Storage Providers through the use of smart contracts, creating a highly efficient, scalable, and trust-minimized marketplace with predictable rules. GLIF enables token holders to sustainably earn rewards and Storage Providers to scale their growth.

I don't understand the usage scenario of GLIF. Why do miners need to deposit FIL in GLIF and borrow FIL back when they are the same token?

Indeed, miners, or Storage Providers (SPs), do not need to deposit FIL into GLIF. Instead, they use the FIL already pledged on their miner(s) as collateral. Let's explore how GLIF works with SPs:

GLIF enables SPs to borrow FIL from a large group of Liquidity Providers (LPs), without giving away any private keys or needing to go through a manual diligence process. Borrowed funds can be used for sealing, or for withdrawing out of the system entirely. In order to become eligible for borrowing, SPs must add collateral to GLIF. SPs can use pledge collateral already locked in their existing miners to borrow FIL, enabling them to scale operations without buying more FIL.

When SPs borrow from GLIF, what do they use as collateral?

By reusing pledge collateral and vesting rewards already locked in existing miners, Storage Providers (SPs) can efficiently scale their operations without needing to purchase more FIL. The FIL collateral provided by SPs is illiquid, having already been pledged to the Filecoin network for storage mining.

Why do SPs need to provide collateral?

Collateral plays a crucial role in ensuring the security and stability of the entire pool. If SPs break the rules of the pool, their collateral can be liquidated, which allows the pool to recover FIL on behalf of LPs, to mitigate (and ideally avoid all together) any losses.

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