Rewards & iFIL

Rewards

When Storage Providers rent FIL, they are required to make a weekly payment back to the pool. These weekly payments are accounted as earnings for liquidity providers. LPs earn rewards by holding the iFIL liquid leasing token.

iFIL

iFIL is GLIF's liquid leasing token - iFIL can be transferred to other wallets, traded on secondaries, and used in other DeFi protocols. When a FIL token holder deposits FIL into GLIF, they receive iFIL tokens in return.

iFIL can be thought of as a “redemption ticket” for FIL deposited into GLIF. It allows the iFIL holder to withdraw FIL from the liquidity pool. The amount of FIL that can be redeemed for 1 iFIL token is computed by:

$$iFIL Price = PoolTotalAssets / iFIL Circulating Supply$$

This means that as GLIF generates rental payments from SPs, the amount of FIL that can be redeemed for 1 iFIL token should increase over time. Using a simple example where a single deposit for 100,000 FIL enters at time 0:

Time	Pool total assets	iFIL supply	Value of 1 iFIL	Value of 1 FIL (in iFIL terms)
0	100,000 FIL	100,000 iFIL	1 FIL	1 iFIL
1	110,000 FIL	100,000 iFIL	1.1 FIL	0.91 iFIL
10	200,000 FIL	100,000 iFIL	2 FIL	0.5 iFIL

Weekly payments increase the price of iFIL

What does this mean for liquidity providers? There are 3 important takeaways:

1. The amount of iFIL received for every FIL deposited should decrease over time.

2. The value of iFIL increases over time (instead of using a 1:1 token and rebasing).

3. If GLIF were ever to lose money in a liquidation, the pool’s total assets would decrease, meaning the amount of FIL redeemable for 1 iFIL token decreases.