Filecoin liquid rental protocol Glif has raised $4.5 million in a funding round led by Multicoin Capital. Cryptocurrency protocol is preparing to offer reward points ahead of token launch. Multicoin Capital’s managing partner suggests that Glif will be the Jito of Filecoin.
Cryptocurrency protocol raises $4.5 million in funding
Owners and storage providers of Glyph, a liquid leasing protocol for Filecoin, have raised $4.5 million in a seed funding round. Multicoin Capital led the round, with Zee Prime Capital, Fintech Collective, Big Brain Holdings, Protocol Labs and other investors participating, Glif said in a statement on Tuesday. A spokesperson for the cryptocurrency venture capital firm stated that this is Multicoin’s first deal in the Filecoin ecosystem.
Founder and CEO Jonathan Schwartz noted that Glif closed the round last November. He said it was structured as a simple deal for future equity (SAFE) with token warrants. Meanwhile, Schwartz declined to comment on the valuation.
“Glif is to Filecoin what Jito is to Solana!”
According to Filfox data, Glif is currently the largest protocol in the Filecoin ecosystem. The total value of the cryptocurrency protocol is over $139 million. Glif allows Filecoin token holders and storage providers or miners to earn rewards by depositing tokens into its protocol. Mechanically, Glif is like a liquid staking platform. However, since Filecoin is not a proof-of-stake network, it is called a liquid rental protocol. Kyle Samani, managing partner of Multicoin Capital, made the following statement after the fund:
Glif is to Filecoin what Lido is to Ethereum or Jito to Solana. It is a cornerstone for the DeFi ecosystem and capital efficiency of the Filecoin network. Glif’s traction is nothing short of impressive. One of the fastest growing DeFi protocols in all of crypto. We expect Glif to continue to grow exponentially over the next few years and renew interest in the Filecoin ecosystem.
What is a glyph?
Its developers launched the Glyph protocol in March 2023, shortly after Filecoin implemented its own virtual machine that enabled it to support smart contracts and opened it up to the world of decentralized applications. Before launching the protocol, Glif had developed applications and tools for Filecoin since its founding in 2019.
Glif says it has developed the first Filecoin wallet and the first Filecoin notary service, among other Filecoin infrastructure and tools. With the new funding, Glif aims to increase its total value locked in FIL leases to 100 million. Or plans to raise it to more than $495 million at current prices.
Reward points and token launch of cryptocurrency protocol
Glif will launch a rewards program offering points to users in the late first quarter of 2024. In order to earn points, Glif users will need to deposit FIL. Additionally, Glif will need to issue iFIL tokens, its native liquid rental token. Glif did not say whether points would be awarded based on past or future activity. However, a source with direct knowledge of the matter stated that the protocol will reward users based on both past and future activity. The source also made the following statements:
Glyph points will be awarded historically based on the amount of rewards received by liquidity providers and the amount of rental fees paid by storage providers. The same strategy will be used to reward future activities. Points will be used to determine the initial amount of tokens to be given to users.
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