Research Summary
The report discusses the launch of the Filecoin Virtual Machine (FVM) and its impact on the Filecoin ecosystem, particularly through the GLIF protocol. Multicoin Capital led a $4.5M investment round in GLIF, which is described as the foundational DeFi primitive of Filecoin and the first liquid leasing protocol in crypto.
Key Takeaways
Filecoin Virtual Machine (FVM) Launch
- FVM Introduction: The FVM, launched on March 14, 2023, allows developers to bind payments and DeFi to real-world primitives on the Filecoin network, starting with storage. The FVM is expected to eventually allow for direct programmability of bandwidth and compute resources.
GLIF: The Foundational DeFi Primitive of Filecoin
- GLIF’s Role: GLIF uses the FVM to create a permissionless market between people who own FIL (Filecoin’s native token) and storage providers (SPs) who have hardware. It addresses the core capital efficiency problem in the Filecoin ecosystem by allowing FIL holders to deposit FIL to a liquidity pool and receive iFIL in return. SPs can lease FIL from the liquidity pool based on the amount of collateral they lock in the protocol.
GLIF’s Unique Architecture
- Flexible Foundation: GLIF’s protocol can deploy several interoperable capital markets with their own custom assets and rules. This feature allows GLIF to engage with liquidity providers (LPs) and SPs in bespoke ways and scale to fit new use cases as Filecoin matures.
GLIF’s Market Performance
- Strong Traction: GLIF is the leading DeFi protocol on Filecoin, with approximately 10M FIL being lent and 8M FIL being leased.
GLIF’s Leadership
- Filecoin Ecosystem Leaders: The GLIF team, led by Jon Schwartz and Peter Andersen, has been building foundational products in the Filecoin ecosystem since 2019. They have developed several critical apps and tools for the Filecoin network.
Actionable Insights
- Monitor GLIF’s Development: Given its unique architecture and strong market performance, GLIF’s future developments and adaptations to the Filecoin ecosystem should be closely watched.
- Understand the FVM’s Potential: The FVM’s ability to bind payments and DeFi to real-world primitives on the Filecoin network could have significant implications for the broader crypto market. Its future capabilities, such as direct programmability of bandwidth and compute resources, should be researched further.
- Assess the Impact of GLIF’s Liquid Leasing Protocol: GLIF’s liquid leasing protocol is a novel concept in the crypto space. Its impact on the Filecoin ecosystem and potential applications in other crypto ecosystems should be evaluated.
