Introducing 7up.finance: Filecoin Lending & Investment Platform on Binance Smart Chain

7up.finance is a DeFi Filecoin (FIL) lending and investment platform based on Binance Smart Chain.

Through matching the FIL holders and FIL seekers, 7up is designed for the FIL borrowing market. Meanwhile, on the 7up platform, lending itself is a way of mining. Once a loan contract takes effect, the borrower and lender will both receive rewards in 7UP, the native token of the platform.

Visit the 7up.finance platfom here: https://7up.finance/.

Huge Needs for FIL Tokens

After the recent launch of the Filecoin mainnet, a huge gap has grown between the large demand for FIL tokens by miners on the Filecoin mainnet and the small circulation volume of the token in the secondary market, a situation caused by Filecoin’s pre-stake mechanism.

Filecoin’s economic design requires miners to pledge FIL tokens as initial collateral in order to seal data into valid network sectors so that they can increase their effective storage mining power.

In order to have in-depth and immediate participation in the network activities, miners have to obtain FIL tokens in the secondary market. Therefore, a large demand for FIL tokens has emerged on the market.

The creation of 7up.finance

7up.finance is a decentralized Filecoin lending platform that helps users obtain the FIL tokens they need without having to actually buy them.

By matching users who hold FIL tokens and those who need them for mining purposes, holders of FIL tokens can earn passive income by supplying FIL tokens to the platform for lending, while those in need can borrow FIL by collateralizing the corresponding amount of stablecoins on the platform.

Currently, the platform supports two stablecoins: Binance Smart Chain based USDT and BUSD (Binance USD).

Rewards are distributed in 7UP, the native token of the platform.

How to Mine 7UP Tokens?

Users are allowed to mine 7UP tokens by both depositing and borrowing.

Deposit Mining: Mining Power = Deposited amount * Power weight, the mining rewards one can get is proportionate to his or her mining power.

Borrow Mining: Mining Power = Borrowed amount * Power weight, the mining rewards one can get is proportionate to his or her mining power.

7UP Tokenomics

The total supply of 7UP is 100,000.

  • 50% of the total supply will be mined through borrowing throughout a 30-day period.
  • 30% of the total supply will be mined through liquidity provision for 7UP trading pairs.
  • The remaining 20% belongs to the team for its contribution to the ecosystem.

The rewards for the team and liquidity providers : borrowers are generated at a ratio of 1:1.

Mining on 7Up starts at the moment when the first deposit completes.

Handling Fees on the Platform

10% of interests generated from lending will be charged as the handling fee of the platform. However, 7Up will not take any of it.

50% of the platform handling fees will be injected to the Staking dividend pool, and the other 50% will enter the team’s address for burning.

7up.finance will distribute the platform handling fees among its users proportionate to their staking volume in the 7UP dividend pool.

How to Borrow Assets on 7Up?

For suppliers:

1. Choose a pool to supply FIL tokens

2. Enter the amount of FIL to deposit after approval

3. The interests start to accrue and 7UP mining begins at the same time

4. Click [Withdraw] to obtain the principal and interests anytime

5. You are allowed to directly add the interests into the principal

6. You are able to claim all rewards in multiple pools by one click in [My account]

For Borrowers:

1. Choose a pool to borrow FIL based on your collateral

2. Enter the amount of collateral to deposit after approval

3. Borrow assets within the limit related to your collateral

4. You are able to add more collateral or borrow more assets anytime

5. You are allowed to repay your debt at any time, and your collateral will be returned proportionately

6. You are able to claim all rewards in multiple pools by one click in [My account]

Related Parameters and Explanation

Current Borrow-to-Deposit Ratio = Current loan / Deposit

Max. Borrow-to-Deposit Ratio: 60%

The maximum amount users can borrow is limited by the Max. Borrow-to-Deposit Ratio of the assets they have supplied. For example, if the borrower supplies 100 USDT, with the Max. Borrow-to-Deposit Ratio set at 60%, the borrower can get loan up to 60 USDT worth of FIL from the platform.

Liquidation limit: 90%

Liquidation limit is set due to the possibility that when the FIL token price increases and the borrower may not be able to repay their FIL debt. When the liquidation limit is reached, the platform will regard that the user gives up repayment and launch the liquidation process. The borrower’s stablecoin collateral will be taken by the debtee.

  • When the Current Borrow-to-Deposit Ratio is lower than the Max. Borrow-to-Deposit Ratio, the user is able to borrow more assets until the Current Borrow-to-Deposit Ratio equals the Max. Borrow-to-Deposit Ratio.
  • When the Current Borrow-to-Deposit Ratio is higher than the Max. Borrow-to-Deposit Ratio, the user can lower the liquidation risk by adding more assets to collateral and lowering the Current Borrow-to-Deposit Ratio.
  • When the Current Borrow-to-Deposit Ratio equals the Liquidation Limit, the user’s liquidable assets will be injected into the liquidation pool, available for any depositor to liquidate.

For example, when the price of FIL is 20 USDT, Bob collateralizes 100 USDT on the platform and borrowed 3 FIL from Alice. The collateral factor is 60%, so Bob can only borrow 60 USDT worth of FIL tokens.

If the price of FIL stays lower than 20 USDT, the 60 USDT worth of FIL that Bob borrowed is worth more than 3 FIL tokens so there’s no risk of liquidation.

If the price of FIL rises and exceeds 20 USDT, Bob can’t buy 3 FIL with 60 USDT and if the price keeps rising, the 100 USDT Bob collateralized may not be able to cover 3 FIL tokens, hence there is a possibility that Bob cannot repay the debt. Now if the price of FIL keeps rising and the value of the 3 FIL borrowed by Bob reaches 90% of his collateralized assets, that is, when 3 FIL = 90% * 100 USDT = 90 USDT (30 USDT per FIL), the liquidation limit will be triggered and his position will enter the liquidation process. The 100 USDT collateralized by Bob will then taken by Alice and Bob will own the 3 FIL he borrowed earlier.

Debt interest rate = base interest rate + (borrowed amount / (remaining amount + borrowed amount) * market popularity

Deposit interest rate = borrowed amount / (remaining amount + borrowed amount) * debt interest rate

Liquidation rules

When the order triggers the liquidation limit, it will automatically enter the platform’s liquidation list.

All lenders on the platform are eligible to participating in the liquidation. After the order is liquidated, the collateralized assets will be injected to the platform’s liquidation pool.

Where to find us?

Please stay tuned for more tutorials and updates on our social channels!

DeFi lending & investment platform for Filecoin. Find us on http://7up.finance/