Family Miners

Family Miners is a concept we’ve introduced to allow new Storage Providers who do not have a balance to borrow against to have access to the FIL liquidity in the FILLiquid liquidity pool. Family MIners refer to a group of “MIners” associated with the same “Family Role,” allowing the Total Account Balance of all members to be pooled as collateral.

Miners within a family can borrow against the Total Account Balance in the Family, allowing newly minted SP accounts to borrow FIL to expand storage power.

If the debt-to-assets ratio threshold is set at 50%, the total debt outstanding of the Family will equal half of the total miner balances of all its members.

Upon initiating the binding process with the Smart Contract, a Family role is automatically generated. To be included in the Family, the miners must have transferred their beneficiary addresses to the Smart Contract. Once a miner joins the Family, their consent is automatically granted, enabling the Family role to invite additional miners to join. Additionally, there is a limit of five (5) miners that can be added to a Family, and each miner can borrow up to five (5) lines of credit.

When withdrawing a miner from a Family, it is critical to ensure that the remaining miners in the Family still satisfy the collateralization requirement. The collective balance of the remaining miners must be sufficient to maintain the designated debt-to-assets ratio. This guarantees that the collateral remains adequately secured even after the withdrawal of Miners from the Family.

This approach enables fresh SPs to leverage the collective collateral of their associated Family Miners and participate in borrowing from the pool.