Cross-chain Wrapped FIL is Now Available on Secured Finance
We are excited to share that Secured Finance, a cutting-edge lending platform on Ethereum, will integrate Squid and Axelar to facilitate easy and secure cross-chain swaps. This integration means our users can now effortlessly swap between wrapped FIL tokens on Filecoin and Ethereum with just a single click! Stay tuned for our upcoming article, where we’ll guide you on how to use this feature.
Understanding Wrapped FIL
Wrapped FIL (wFIL) is an ERC-20 token that represents the native Filecoin token (FIL). wFIL on Ethereum is compatible with bridges like Axelar, which enables platforms like Secured Finance to provide a range of Filecoin-based products on blockchains that do not support FIL by default.
The process is straightforward: users deposit FIL into the wFIL contract and receive an equivalent number of wFIL tokens. To revert back to FIL, users simply burn their wFIL, releasing the original FIL amount from the contract.
wFIL significantly enhances the liquidity and interoperability of FIL tokens, opening up new possibilities for decentralized finance (DeFi) applications across multiple blockchains.
Why Secured Finance Adopted Wrapped FIL
We are focusing on introducing Wrapped FIL on EVM compatible networks because Filecoin Storage Providers are a key client for us. These Storage Providers, who provide data services like storage, retrieval, and compute on the Filecoin network, need to use FIL as collateral. By offering Wrapped FIL on our platform, we can greatly enhance capital efficiency. This will allow for a variety of investment options across different blockchain networks tailored specifically for our clients. After careful consideration, we’ve selected axlFIL, issued by Axler, as our initial Wrapped FIL offering. Our goal is to create a truly decentralized platform, and Axler’s architectural model aligns perfectly with our vision.
Seamlessly Transfer Wrapped FIL to Ethereum and Back at a Reasonable Price
Since blockchain networks typically operate in isolation, cross-chain bridges like the Axelar Network are essential for enabling interactions between them. Axelar Network offers a secure and highly decentralized solution for cross-chain communication, requiring minimal integration from connected blockchains. Its suite of protocols ensures efficient cross-chain transactions.
Squid, powered by Axelar’s technology, uses Generalised Message Passing to enable complex cross-chain operations through a single transaction. Squid also helps users find more cost-effective swap routes. By directing transactions through axlUSDC/USDC stable swap pools and USDC/native token pools on standard Automated Market Makers (AMMs), Squid taps into the deep liquidity between USDC and various tokens. This method reduces the need for extensive liquidity pools, potentially lowering swap costs. We’ll delve deeper into this in a future tutorial in collaboration with GLIF.
About GLIF:
GLIF, a prominent toolset within the Filecoin ecosystem, has recently made strides in enhancing the decentralized finance (DeFi) capabilities of Filecoin by introducing automated staking pools. This innovative feature marks a significant advancement in the Filecoin network, offering users a more streamlined and efficient way to participate in staking. GLIF’s automated staking pool is designed to simplify the process of staking on Filecoin, making it more accessible to a broader range of users and potentially increasing the overall participation in the network’s staking activities.
About Secured Finance:
Secured Finance: Interbank-grade, Peer-to-Peer Capital Markets. Decentralized Finance (DeFi) protocol built on blockchain for OTC derivatives trading. Secure, efficient, and transparent transactions. Unlocking the full potential of global finance.
Join the future of finance today!
