LendMi: Activating the liquidity of the Filecoin ecosystem lending market

In 2021, the blockchain industry has developed steadily and formed four major trends: in line with the development of "new infrastructure", blockchain has begun to integrate other new technologies; government affairs, supply chain, finance, big data and other sectors have become popular tracks and accelerated implementation; asset chain development has begun, and digital securities may be the leader in global asset chain development. Supporting facilities such as all-in-one machines, underlying network facilities, and blockchain chips are constantly emerging, and public chains and alliance chains are developing rapidly.

According to relevant data, it is expected that by 2022, the market size of my country's blockchain core products and solutions and related derivative industries will reach 10 billion yuan. More and more ecological participants are joining the great voyage of blockchain development, and more and more funds are pouring into the blue ocean of the crypto world. It cannot be ignored that users' lending needs are constantly changing with the development of the industry.

Today we are honored to invite Patrick, the official community leader of LendMi, to come to Interstellar Vision to share. The theme of this event is [LendMi: Activating the Liquidity of the Filecoin Ecosystem Lending Market]. The following is the specific text content:

Interstellar Vision Gege: LendMi is a platform for building FileCoin's lending ecosystem. Could you please introduce the current development progress?

Patrick, the official community leader of LendMi: For a long time, we have been developing the VFil Mining Fund, which was launched on July 27 and has reached a subscription volume of 40,000 VFils. We will continue to follow up and optimize the VFil Mining Fund for a period of time to achieve better market results. The development of DAO governance has also been put on the daily schedule. Our product manager is researching and designing the DAO governance plan. Once the plan is determined, it will enter development.

Interstellar Vision Gege: From the perspective of VFIL's operating mechanism, VFIL is more like a computing power Token model that entrusts node mining by staking FIL. So will VFIL consider intervening in the computing power Token field of FIL?

Patrick, the official community leader of LendMi: I feel this way, but we still need to know the difference between VFil Mining Fund and computing power tokens. If we issue computing power tokens, our platform must guarantee the payment of computing power, and what we deliver to users is computing power. As for VFil Mining Fund, we promise users to pledge VFil to physical Mill Mining, and what we deliver to users is the principal and mining income. The latter is not so dependent on machine operation and maintenance, and the principal and income delivered are both tokens, which is equivalent to you handing over the money to us to manage, and finally dividing the income with you. This model is less difficult, less affected by the outside world, and easier to carry out on Defi.

In addition, we have been engaged in the Filecoin Mining industry for a long time, have a deep understanding of many large nodes, and have established friendly cooperative relationships. We can also do things like computing power Tokens. If the plan is mature and the model is reasonable, we will launch computing power Tokens. I believe that at that time it will be competitive in the market.

Interstellar Vision Gege: We all know that FIL Token has an anchor token such as HFIL on the HECO chain. What is the difference between VFIL’s anchoring method and HFIL? What mechanism is used to maintain the price of VFIL?

Patrick, the official community leader of LendMi: HFil is a 1:1 cross-chain mapping done by Heco officials on centralized institutions and decentralized chains. This kind of mapping is very common, and its purpose is to cross-chain and keep prices constant.

VFil is very different. VFil is equivalent to the combination of principal and physical mining rights. 1VFil = 1 pledged Fil. Because there will be income from staking, the principal will eventually be redeemed at a 1:1 ratio, so: 1VFil = 1 Fil + 1Fil's Mining income. In this way, the value of 1 VFil > 1 Fil, so the price should also be higher than 1 Fil. However, since we will distribute the Mining income to users in real time, that is to say, this part will be directly converted into Fil, and will not be reflected in the value (price), which is equivalent to the income part being withdrawn, so 1VFil = 1Fil's principal. Therefore, when liquidity is sufficient and there is no friction, 1VFil = 1 Fil, especially when the redemption channel is opened, users can exchange 1 VFil for 1 Fil, and the price at this time is 1 Fil. However, since VFil has an upper limit, when VFil is particularly popular, VFil will be higher than 1Fil in the secondary market.

Interstellar Vision Gege: Investors obtain VFIL by staking FIL, and FIL needs to be used in node mining. If there is large capital on-chain deposits and withdrawals, how will LendMi eliminate the impact of large capital operations on the VFIL price?

Patrick, the official community leader of LendMi: This problem does exist in the secondary market. No market has unlimited liquidity. Liquidity is limited, so the above problems will occur. However, we have two solutions to mitigate the impact of large investors on the secondary market.

First, we have prepared a portion of funds for secondary market making, which can pull the price back in the short term. For example, if there is a huge selling pressure on VFil and the price of VFil is lower than 1Fil, arbitrageurs will buy VFil and wait for the redemption channel to open to redeem it for arbitrage. If there are no arbitrageurs, the platform will play this role and pull the price back.

Second, we have a redemption channel. When there is too much VFil in the secondary market, we will take back the pledged Fil, open the redemption channel, and destroy the VFil in the market to restore prices to normal.

Interstellar Vision Gege: In LendMi, the node needs to pledge the private key to LendMi, and then LendMi obtains control of the node assets. These operations are all performed on the chain. Will this affect the security of the Mining node?

Patrick, the official community leader of LendMi: Regarding the node private key, we have adopted a multi-signature processing method to improve its fault tolerance. In addition, we have strict discipline and a complete hardware wallet management solution to ensure the security of the private key, so please rest assured.

Interstellar Vision Gege: What are the advantages of LendMi on-chain lending over off-chain lending, and what benefits can it bring to the Filecoin network?

Patrick, the official community leader of LendMi: The advantages of on-chain compared to off-chain are still very obvious:

1. Fair and open. The loan amount, profit calculation, and profit distribution rules are all written in the smart contract and are the same for everyone.

2. Reduce the difficulty of participation. Compared with offline communication and contract signing, the cost of on-chain operations is significantly lower, especially for small investors, who will definitely suffer discrimination or be unable to obtain investment opportunities off-chain, but it is the same on-chain.

3. Reduce operating costs. The efficiency of the program is thousands of times that of a human being, and it works 24 hours a day. Reducing the platform's operating costs can improve the stability of the platform on the one hand, and increase the benefits of users on the other hand.

4. Higher liquidity. Equity tokens can be circulated in the secondary market, which means you can sell your equity at any time, which is impossible in centralized institutions.

5. Can be integrated into other Defi asset protocols. The issued VFil Fund Equity Token follows the ERC20 standard. All infrastructure on Ethereum (or BSC, Heco) can support each other with the VFil Fund Equity Token. Its assets can be integrated into other asset protocols and accommodated by other ecosystems. It can be used as asset collateral or obtain additional income.

Interstellar Vision Gege: Please introduce the future plans for LendMi and your views on the development of distributed storage.

Patrick, the official community leader of LendMi: LendMi has a long-term and detailed plan for future development. First of all, LendMi will continue to dig deep in IPFS, mainly the Filecoin network, and continue to exert its strength in the vertical ecology of Fil ecology.

Our next plan is to enable LendMi to achieve community governance, mainly to decentralize the existing centralized decision-making part, and hand over the operation rights of LendMi to community partners who care about LendMi, so that they can participate in the development of LendMi.

Next, we may launch some new products, all centered around Fil, such as computing power tokens, computing power derivatives, synthetic assets, etc. Please stay tuned!