Filecoin’s Smal Highlights
At the beginning of 2023, Filecoin issued an article sharing three major changes this year, namely FVM, data computing and retrieval market updates. The updates quickly attracted widespread attention from the market after their release.
Especially on the 14th of March, Filecoin officially launched FVM, which brought about major changes in Filecoin’s valuation model.
Before the launch of FVM, the valuation of Filecoin was only equivalent to the upper limit of its storage capacity, and it faced competition from many storage projects. The birth of FVM enabled Filecoin’s valuation model to realize the double superposition of storage and public chain.
In short, the status of FVM in Filecoin is comparable to that of EVM in ETH. With FVM, developers can easily build various DEFI, applications, and decentralized storage computing on Filecoin to achieve rapid testing and deployment.
It is worth mentioning that FVM is fully compatible with Ethereum’s EVM, which enables developers to write smart contracts using Solidity and other programming languages compatible with Ethereum. Such excellent compatibility provides developers with the possibility to easily migrate existing Ethereum-based dApps to the network. Moreover, FVM also has significant advantages over the Ethereum Virtual Machine, such as shorter execution time and lower gas costs.
With the expectation of FVM, in the first quarter of 2023, the growth performance of Filecoin protocol revenue and Total Value Locked (TVL) is significant. According to DeFiLlama data, the Filecoin network performed steadily in the first quarter, and the protocol revenue increased by 5% month-on-month, with a growth rate as high as 21%. At the same time, the TVL on Filecoin has more than doubled, reaching an all-time high of $3.15 million on February 21.
Dilemma Still Exists
However, after the launch of FVM, although the official continued to release great benefits to support the reform of LSD liquidity staking and computing power mechanism, the currency price of FIL failed to continue rising. There are many reasons behind it.
There are many early miners in the market, they invested a lot of money to buy mining machines, and held a large amount of FIL coins at the high level of the market. The FIL mined by these miners will be released linearly within 180 days. When the market is doing well, they are often eager to sell to recoup their costs.
Compared with traditional storage solutions, Filecoin’s decentralized storage technology still needs time to develop and improve. Large enterprises and organizations usually choose mature and stable technologies and services, and Filecoin may temporarily be unable to compete with traditional cloud storage services in terms of performance and speed.
In terms of mode and gameplay, recently, the LSD liquid stake launched by Filecoin encourages users to participate in liquidity mining to a certain extent, and improves the liquidity of FIL in the market. However, this approach is only a short-term solution, not dealing with the root cause. If the application consumption is unable to follow, the circulation of stake will increase the speed of market circulation and increase pressure on the secondary market. Package upgrade (CC to DC) leads to more concentrated power in the hands of large miners.
In response to the official policy of expanding the computing power of the existing mining machines, this means ten times the amount of FIL coins are required for mining machine packaging, which will have a certain positive impact on the deflation of the entire FIL. However, for small and medium-sized miners, this policy means that they will face rising costs in computer rooms, electricity prices, and unpredictable policy risks.
Key To Sustaining Growth
Throughout the early development of Ethereum, Solana, and Avalanche, they often rely on the increasingly rich and mature product structure to obtain huge transaction volume and liquidity, and quickly become the absolute protagonists on the public chain stage. However, as the competition in the cryptocurrency market becomes increasingly cruel, and users are becoming more mature than the early stages of the industry, public chain project parties have realized that it is no longer possible to gain a foothold in the industry only by some dazzling gameplay, and must actively develop the ecosystem through down-to-earth development which never fail.
At present, in the public chain ecosystem, whether it is about applications such as wallets, DEX, games, mining, cross-chain, and custody, the relationship between them is becoming more and more closely related. Only an ecosystem based on the public chain can combine everything together to form a whole, support each other, and interrelate with each other, and then bring a greater market competitiveness to the ecological layout.
From this point of view, it is not difficult to understand that the core of Filecoin’s future development lies in the ecological construction based on the public chain. Filecoin should take advantage of FVM’s launch and decentralized storage to actively develop and support ecological construction. It should focus on application use cases, effective data, retrieval markets, and the growth of virtual machine ecology. This is related to the future of Filecoin.
We expect that with the development of the ecology, Filecoin will become a layer-1 public chain similar to ETH, BSC, etc., the stake rate of FIL is expected to further increase, and real applications will support the market price.
Filecoin Ecological Leading Partner- Themis
In the past few months, more than 150 development teams have begun to deploy FVM products and services on the Filecoin mainnet, and Themis is one of them. Thanks to the product model and the strong execution of the team, the Themis protocol has become popular in the Filecoin community recently, and has received great attention from more than 16,000 developers and miners in the Filecoin ecosystem.
According to the data, Themis Pro, the core product of the Themis protocol, is a decentralized spot and derivatives trading aggregation platform based on Ve(3,3) on FVM. Its products have the advantages of zero slippage trading mechanism, strong platform revenue feedback ability and high capital utilization rate.
The price of the Themis treasury fund pool is not regulated by the xy=k formula, but the price is obtained from the head CEX through the ChainLink oracle machine to achieve “zero slippage”. The benefits of zero-slippage trading to Themis Pro (0x,f4) are obvious, that is, ultra-high leverage is feasible on a perpetual contract platform with low liquidity. Even when the TPS on the chain is not high, users can obtain real-time prices based on the depth of the centralized exchange, in exchange for a better trading experience, and avoid unnecessary losses caused by slippage.
At the same time, Themis Pro also realizes the full-chain contract trading of derivatives. Especially with the help of the experience-friendly FVM ecology, Themis Pro can achieve the same trading experience as CEX, avoiding the transaction loss caused by the delay of contract transactions.
Another very important reward mechanism of Themis Pro is that 70% of the platform revenue is used to repurchase $THS. This repurchase effort ensures the super value capture ability of the platform token THS, thereby promoting the rapid development of the community.
In March this year, the Themis team made a high-profile announcement to actively deploy the Filecoin ecosystem, focusing all on FVM and striving to become the leader of Filecoin, including:
- Themis Labs has built the first The Graph node for the Filecoin Virtual Machine (FVM), and other developers can make full use of this node to obtain on-chain data, query network status, etc., so as to more conveniently develop and deploy Filecoin-based Go Centralized application.
- The core product, Themis Pro, is already a mature asset exchange-type decentralized spot and contract exchange. The innovative mechanism can effectively increase the number of locked positions of FIL, thereby increasing its value. By providing more trading pairs and trading products, Themis Pro is expected to attract more users to participate in the Filecoin ecosystem.
- Themis will build an automated market maker (AMM) type DEX on FVM to meet the needs of different user groups. This will further enrich the application scenarios of the Filecoin ecosystem and improve the utility and circulation of FIL.
- Themis will build an automated market maker (AMM) type DEX on FVM to meet the needs of different user groups. This will further enrich the FThemis protocol. It also plans to issue an FVM-based asset-reserve USD stablecoin, similar to DAI. FIL users can use FIL as collateral to mint this USD stablecoin. This will greatly increase the circulation value of FIL while providing users with a hedging and payment tool. The application scenarios of the ilecoin ecosystem improve the practicality and circulation of FIL .
- Themis will simultaneously open LSD business based on its own pot price adjustment mechanism and eight-hour compound interest mechanism, and launch the FIL Pool product, a liquidity staking service. This product provides a novel and innovative solution, that is, users can participate as suppliers Among them, liquidity is provided to the market to earn passive income, and SP can borrow in an over-collateralized manner to improve capital utilization, maximizing value capture for FIL stakers and SP. This move is expected to encourage more users to participate in the Filecoin ecosystem and further increase the lock-up volume and value of FIL.
Storage, retrieval, and computing are the infrastructure layers of the Filecoin ecosystem. This is the underlying soil advantage that other public chain ecosystems cannot match. However, the development of the infrastructure layer and the long profit cycle are not enough to support the further development of Filecoin in today’s market environment. The financial layer built on the infrastructure layer is the key to the prosperity of the Filecoin ecosystem and a powerful engine for the rapid development of the Filecoin ecosystem. Similar to the economic development of a country, the vigorous development of industry, agriculture, and tertiary industries requires the central bank’s monetary policy to do macro-control. Commercial banks, as the executors of the central bank’s monetary policy, rely on a complete financial system to drive the development of various industries.
As an innovative DeFi protocol that combines the advantages of Cruve, Olympus, and GMX, Themis implements LAAS (Liquidity-as-a-Service), that is, liquidity as a service.It is an innovation of Yield Farming that detonated DeFi’s summer in 2020, provides a new set of liquidity incentives and retention solutions. Compared with Yield Farming, LAAS ensures sustainable liquidity while adjusting long-term incentives for investors.
Based on the comprehensive and accurate analysis of the Filecoin ecology, the team’s experience, cognition and technical capabilities in the DeFi field, and the advantages of the protocol itself, the Themis protocol fully has the conditions and capabilities to become the cornerstone of the Filecoin ecological financial layer. Themis that includes treasury contracts, minting contracts, bonding contracts, and subsequent stablecoin contracts, can be understood as the role of the central bank of the Filecoin ecosystem. Staking contracts, LSD business, AMM exchange Themis Swap, arbitrary crypto assets conversion decentralized spot and derivatives exchange, Themis Pro will undertake the role of the Filecoin ecological commercial bank provides a steady stream of liquidity and transaction scenarios for SP, various applications, and FIL holders.
With the continuous development of the Filecoin ecosystem, Themis protocol will be at the leading position in cultivating a stable and prosperous FIL-DeFi ecosystem.
As the first phenomenal application of the nascent public chain, it is the most attractive to investors. For example, Treasure Dao and GMX on Arbitrum have brought real traffic and TVL value support to the Arbitrum ecosystem. In turn, Arbitrum has given more support to the project in terms of technology and publicity. Judging from Themis’ recent announcement that it has obtained strategic investment support from early investors in the Filecoin-related ecology, and the interaction between Filecoin’s official push and Themis Pro, it is clear that Themis protocol has been officially recognized and supported by Filecoin.
2023 is the year of the Filecoin ecosystem. The development roadmap of FVM will be continuously improved and optimized to achieve more efficient, safer and richer functions. With the continuous development and improvement of FVM, the Filecoin ecosystem will become more well-complete and powerful. Let us stay calm and see which project can become the leader of the Filecoin ecosystem.