FIL Staking QnA
What is FIT?
FIT (Filecoin Trust) token serves as proof of equity for user FIL deposits. When users deposit FIL, the smart contract mints FIT based on the real-time exchange rate. FIT acts as proof of deposit, which is used for profit distribution and FIL redemption.
2. When does yield start generating after depositing?
Yield starts accumulating as soon as you deposit FIL, as the FIT exchange rate increases over time. However, since the exchange rate changes only when borrowers voluntarily repay, and repayments occur irregularly, long-term deposits are recommended for maximizing returns.
3. Why did my FIT value decrease when the utilization rate exceeded 90%?
To prevent liquidity exhaustion, a 90% liquidity protection mechanism is in place.
When the utilization rate exceeds 90%, the FIT exchange rate decreases as utilization increases.
Users redeeming FIL during this period may experience a rate loss.
Users depositing FIL during this period receive a rate subsidy.
Once liquidity is restored, the FIT exchange rate returns to normal.
A temporary FIT rate drop due to high utilization is normal, and it will recover once liquidity stabilizes.
4. Why is there a fee for redeeming FIL?
The protocol does not take profits from interest rates; all interest paid by borrowers goes to pledge users.
Instead, a certain fee is charged as protocol revenue, and part of this is used to repurchase the FIG governance token.
5. Why is there a significant difference between my earnings and the displayed APY?
APY is based on the comprehensive interest rate in the lending market.
However, since Storage Provider (SP) repayments are not real-time, interest is only settled when they repay.
FIT exchange rate increases upon repayment, generating returns for depositors.
Keeping deposits for a longer duration will help earnings align with the displayed APY.
6. Why does slippage occur when depositing or redeeming FIL?
When users deposit or redeem FIL, the smart contract calculates results based on the latest exchange rate.
However, due to market fluctuations, the exchange rate between FIL and FIT may change before the transaction is confirmed.
Slippage occurs when multiple transactions are being processed simultaneously on the blockchain.
Slippage does not reduce the actual value of the user's assets.
7. Why do transactions fail or experience data loading delays?
The issue may be related to the RPC node you are using.
If issues persist, contact community support for assistance.
8. Why do transactions take so long to confirm?
The Filecoin network has a block time of 30 seconds, meaning transactions take at least that long to process.
Network congestion can further delay transaction confirmations.
To speed up transactions, users can increase gas fees or wait for confirmation.