The current problems in the Filecoin SP market are a critical reason why we launched the MineFi platform.
MineFi takes the lead in solving the most important "investment security" problem that affects Filecoin investment decision-making and is dedicated to facilitating all levels of investors to participate in a secure mining process controlled by smart contracts.
So what are the problems of traditional Filecoin staking investment?
The security of funds cannot be guaranteed. Because the control of the node is not in the hands of the user, in the case of force majeure factors that cause the effective power of the node to zero, investors are most concerned about the node service provider can not be restored in time and achieve normal operation. If the node's effective power cannot be restored for 40 days, then the staked principal will be confiscated at once.
Node information is not transparent. The information that users hold and SP service providers are not equal, and users cannot obtain detailed information about the nodes, so some unscrupulous providers have oversold or even sold without nodes.
Poor liquidity. Due to the restrictions of the Filecoin token reward model, staked FIL and encapsulation sectors are locked, and the staking period is often years, so investors cannot withdraw their funds at any time.
The MineFi platform is currently in the testing phase of the testnet and will soon begin the first round of testing on the Filecoin mainnet. The code will also be open-source. In order to further ensure transparency, we are currently undergoing internal and external audits.
Here are the detailed mechanisms of MineFi's smart contract using FVM, which is precisely the achievement that MineFi has achieved.
- Fully control top management authority “Owner”.
MineFi uses the FVM smart contract to achieve absolute control over the highest management authority of storage nodes. Users holding NFT purchase power credentials have the right to participate in voting governance. In extreme situations, investors can choose to determine whether to terminate the sector immediately by voting through DAO at the best time, controlling the smart contract to change the Worker wallet address and granting new trusted Worker permissions to execute termination sectors in advance. At this time, the staked FIL of the sector will flow to the smart contract, and the smart contract will first settle and allocate for investors, maximizing the security of investors' funds.
- Fully control node earnings allocation authority “Beneficiary”.
The direct binding of the MineFi smart contract to the Filecoin storage node also achieves complete control over the node's earnings distribution authority “Beneficiary”. The block rewards of the node will directly enter the address controlled by the smart contract and will be allocated by the smart contract to ensure that investors' earnings are absolutely secure.
- Solve the overselling problem.
As the nodes have been staked to the FVM smart contract, their earnings, staked FIL volume, storage period and other information are all open and transparently available on the chain. Meanwhile, the information of the corresponding effective power product NFT (including the total amount minted, denomination, staked FIL and committed storage service period, etc.) is also publicly and transparently available on the chain. Therefore, anyone can check whether there is overselling by comparing these two aspects of information.
- Efficient and transparent.
Smart contracts can automate various tasks in the network, thus reducing the cost of management and transactions, while also increasing the speed and efficiency of transactions.
Smart contracts record the details and conditions of each transaction, ensuring that all miners receive rewards according to the rules, while making the data storage and transaction process more transparent and fair.
- Providing liquidity.
When users purchase power through the MineFi platform, the smart contract will mint an equal amount of power credentials NFT to the investor. When investors need to withdraw their investment, they can list the NFT for sale on any FVM-supported NFT trading platform and re-sell their power investment to other investors, fully solving the liquidity problem. In addition, considering the ease of use for users, MineFi will also launch its own NFT trading platform.
In building the MineFi platform, the challenges we encountered included are
Smart contracts require gas fees, which may result in higher transaction costs.
Maintaining and managing smart contracts requires strong community governance and standards. How to conduct community governance, and how to authorize tasks and responsibilities to ensure the stability and sustainability of the smart contract system is a critical task. We have also established MineFiDAO to call on more community members to participate in and develop together.
MineFi platform provides the “MineGuard protocol”, a standard safety protocol for the whole industry, which helps FIL mining easily win the trust of investors. Mining services that meet the standards of the agreement will be more favored by investors.
MineGuard protocol is composed of open-source smart contracts and security regulations. We will continue to update and optimize it, and provide BaaS (Blockchain-as-a-Service) services to provide convenient, high-performance, comprehensive technical support and function upgrade services for more teams that want to own their own brand, and jointly provide a stable investment income channel for the FIL ecosystem.
We also hope that more SP, KOL, and community leaders can actively join MineFi, provide valuable opinions and functional requirements, play an important role in our business expansion and operation management, and we will also promote our ideas and thoughts through open source and active promotion, and work together to make Filecoin great!
Log in or sign up for Devpost to join the conversation.