Glif Raises $4.5 Million in Seed Funding
Glif, a liquid leasing protocol for Filecoin holders and storage providers, has secured $4.5 million in a seed funding round. The funding was led by Multicoin Capital, with participation from Zee Prime Capital, Fintech Collective, Big Brain Holdings, Protocol Labs, and other investors. This marks Multicoin’s first investment in the Filecoin ecosystem.
What is Glif?
Glif is currently the largest protocol in the Filecoin ecosystem, with over $139 million in total value locked. It allows Filecoin token holders and storage providers to earn rewards by depositing tokens in its protocol. Glif operates as a liquid leasing platform, even though Filecoin is not a proof-of-stake network.
Kyle Samani, managing partner of Multicoin Capital, described Glif as a crucial component of the Filecoin network’s DeFi ecosystem and capital efficiency. He expects the protocol to continue its rapid growth and attract attention to the Filecoin ecosystem.
The Journey of Glif
The Glif protocol was launched in March 2023 following Filecoin’s implementation of its own virtual machine to support smart contracts and decentralized applications.
Prior to launching the protocol, Glif developed apps and tools for Filecoin since its establishment in 2019. Notable contributions include creating the first Filecoin wallet used for the initial coin offering distribution and introducing the first Filecoin notary service.
With the new funding, Glif aims to increase its total value locked to 100 million FIL leases or over $495 million.
Glif Reward Points and Token Launch
In late Q1 2024, Glif plans to launch a rewards program that offers points to users. To earn points, users must deposit FIL and create iFIL tokens, Glif’s native liquid leasing token.
The protocol will reward users based on both past and future activity, taking into account the amount of rewards received by liquidity providers and rental fees paid by storage providers.
Glif also intends to introduce a governance token similar to other “vote escrowed” models. The points earned by users will determine the initial amount of tokens distributed through an airdrop.
Hot Take: Rewarding Loyalty in Crypto
Reward points are gaining popularity in the crypto industry as a way to incentivize and recognize loyal users. So far, crypto projects have distributed 40 billion reward points. Glif’s introduction of a rewards program adds another layer of engagement for its users and strengthens its position as a leading protocol in the Filecoin ecosystem.
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