Testnet Tutorial Part 3: Staking $FIT to Earn $FIG Through Farming
Welcome to the third part of our testnet tutorial. This guide will cover how to stake your $FIT tokens and earn $FIG.
If you haven’t reviewed our previous guides, please review them before proceeding.
Part 1 covers setting your wallet up to connect to the Filecoin testnet network and load it with free testnet tokens.
Part 2 covers how to stake your $FIL tokens in the liquidity lending pool for lending to earn a passive income.
Staking $FIT to Earn $FIG
$FIT is the liquid staking derivative minted for lending $FIL to the protocol. It serves as a proof of stake and a vehicle of dividend allocation, allowing lenders to earn income from their lending activities.
Those intending to keep their $FIL staked for longer periods of time can use their minted $FIT to farm $FIG, the governance token, and earn more rewards.
There are both fixed and variable rates for farming $FIG, with longer periods providing higher $FIG rewards.
To get started, head over to the farming section on the FILLiquid testnet and make sure the “FIT Farming” section is selected;
Now, we must decide how much $FIT to stake and for what farming period.
Let’s start by Farming 120 $FIT for a “fixed-term” of 2 months, meaning our $FIT will be locked for two months to farm $FIG. To do this, choose the “2” option when choosing the term length;
Once everything is entered, hit “Farm” to start the process;
This will bring up the following MetaMask notification to confirm the transaction. Simply hit “confirm” to put it through;
The process should take around 30 seconds. Once complete, you will be greeted with the following notification;
Your $FIT is now successfully deposited into the Farming product. You can see the deposit on the dashboard;
After a period of time, the $FIT farming will generate $FIG. As the maturity date hasn’t been reached, we can’t withdraw our $FIG generated and reclaim our $FIT deposit.
The following screenshot shows another 10 $FIT deposited, choosing a 1-month lockup, and another 10 $FIT deposit, that has met it’s maturity;
As you can see, the $FIT deposit that uses a 1-month fixed period cannot be withdrawn from the Farming product until maturity and shows “Locked” as its status.
The $FIT in this fixed-term farming option will be locked for the period but will generate significantly higher $FIG rewards through the period.
The other option has reached maturity, so the $FIG and $FIT can be withdrawn.
Redeeming $FIT and Earned $FIG Rewards
Once your $FIT farm has generated some $FIG rewards, you will likely want to withdraw your earnings and redeem your $FIT.
To do this, simply hit “Withdraw’ on the dashboard.
NOTE: Remember, we can only withdraw from Farming transactions that are variable-rate or have reached maturity (for fixed-rate).
This will bring up the following notification to confirm the withdrawal. It will show the amount of $FIG earned through farming. In our example, we have earned 0.051635 $FIG from our variable-term farming. Hit “Confirm” to continue;
A MetaMask window will appear, asking to confirm the transaction. Hit “confirm” again;
The transaction should take around 30 seconds. Once complete, you will be greeted with the following notification;
Your $FIG rewards and $FIT will now be in your wallet, which can be seen on the dashboard;
That’s all there is to it. You now know how to use your $FIT to farm $FIG.
Have fun on our testnet. Please make sure to join our Discord so you can provide us with feedback and stay updated on when you will receive your $FIG airdrop reward for participating.
