Introduction

FILLiquid is a liquidity pool implemented on FVM (Filecoin Virtual Machine) as a fully open-sourced, decentralized, algorithm-based lending platform. Our product facilitates a market that enables FIL token holders to stake tokens and earn passive income while also allowing Storage Providers (SPs) to borrow FIL tokens for storage provisioning.

SPs sit at the core of the Filecoin network and provide critical roles in data storage and network security. Storage Providers pledge FIL tokens to the protocol to provide storage services on Filecoin's decentralized peer-to-peer storage solution. The Initial Pledge Collateral is an upfront investment mechanism to enhance the network's security. In return, SPs earn transaction fees and block rewards proportional to the amount of storage they contribute to the network.

As SPs are required to hold a certain amount of FIL tokens to participate in the consensus, a strong demand for borrowing FIL tokens is created to increase storage capacity services.

This GitBook serves as a technical overview of FILLiquid's features and functionalities. It covers the background and demand for the FIL lending market, the technical architecture and economic design of the lending protocol, the governance structure, and other administrative aspects as we justify the need for a FIL lending market for storage providers.

The GitBook is split into the following three sections:

• Design Architecture

• Economics

• Governance

The Design Architecture section describes the smart contract structure and the protocol's implementation.

The Economics section discusses the determination of borrowing interest rates, distribution of staking income, and the design of governance tokens.

The document concludes with sections on Governance, Risk Management, and Roadmap.

Overall, this GitBook aims to provide a comprehensive understanding of the FILLiquid Pool on a technical level and its role in facilitating a DeFi FIL lending market on the Filecoin network.