Announcement

Embark on Filecoin’s Infinity Quest

A Multi-Stage Journey to Exponential Growth

Masa | Secured Finance

Published in

Secured Finance

3 min readJun 19, 2024

Introduction

Filecoin is set to ignite its DeFi ecosystem with the launch of the Infinity Quest, a series of multi-stage quests designed to drive exponential growth. Coupled with Secured Finance Points (SFP), a revolutionary incentive system, this quest marks a significant leap forward in the Filecoin universe.

The Infinity Quest comprises a series of multi-stage quests designed to engage DeFi users and drive exponential growth. Each stage has a distinct theme and quest goal, leading seamlessly to the next stage.

Filecoin Infinity Quest

To methodically build a comprehensive financial landscape and dynamic market infrastructure, we have structured six growth stages with quantified user contributions through our SFP incentive design system. Progress through these stages can be tracked on our roadmap.

Stage 1: Core Fueling
The initial quest goal is to deposit cryptocurrency. On Filecoin, the primary depositable currencies are FIL and iFIL (liquid staking token).

Stage 2: Orbital Contracts
Once the collateral deposit is completed, the next step is to place limit orders to borrow or lend FIL. This step will create Filecoin’s native currency FIL fixed-income lending market, establish the FIL bond market, and make the FIL yield curve available.

Stage 3: Stellar Minting
A key product in the Filecoin DeFi ecosystem is the stablecoin. Drawing parallels to the Ethereum ecosystem, which saw significant growth driven by the creation of the ETH-based USD-pegged stablecoin DAI by MakerDAO, we aim to replicate this success. Our core lending protocol enables the minting of collateralized stablecoins, similar to the DAI model.

At this stage, users are incentivized to mint a new type of USD-pegged stablecoins (e.g., sfUSD) based on FIL or iFIL collateral. This stablecoin can be used to secure Filecoin Storage Provider’s FIL rewards without leaving the Filecoin chain.

Stage 4: Galactic Pooling
Once the stablecoin is minted, stablecoin holders are encouraged to join Liquidity Provision (LP) on DeFi pools such as Uniswap or Sushiswap. This ensures ample liquidity and a stable exchange rate for FIL to sfUSD, comparable to FIL to USDT or USDC. Additionally, we will build stablecoin lending markets and establish the yield curve.

Stage 5: Cosmic Tokenization
At this stage, the Filecoin ecosystem reaches maturity with established FIL and stablecoin yield curves. We then foster an investment community by expanding the stablecoin minting mechanism to create a broader range of synthetic tokens. These tokens can be linked to fiat baskets, crypto baskets, equity indices, and interest rates. The possibilities are infinite, as long as the oracle price components are available.

Stage 6: Universal Index Exploration
To realize the infinite potential of a synthetic token family, we invite our community to develop and register synthetic indices (with shared fees with the protocol). Through governance voting, new synthetic tokens will be added to the minting mechanism, allowing users to invest in and trade these new tokens. This concept is still under discussion and will be explored further in another article.

Future Explorations

Upon successful completion of the six stages, we will explore expansion to other blockchains such as Ethereum mainnet, Arbitrum, Avalanche, and Polygon zkEVM.

Conclusion

The Infinity Quest represents a significant step forward in the evolution of the Filecoin DeFi ecosystem. By engaging users through a structured, multi-stage point system, we aim to drive exponential growth and create a robust, dynamic financial landscape. We invite you to join us on this exciting journey and contribute to the future of decentralized finance on Filecoin.

Stay tuned for more updates and detailed insights into each stage of the Infinity Quest. Together, let’s build the future of finance!

References

Secured Finance Video: Thanks to Protocol Labs and GSR