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Advantages
To wrap up, MFIL has five major advantages which are:
Asset Security：
MFIL's liquidity token has more than 100% of FIL assets as collateral, ensuring that it does not have an extreme risk exposure. All asset flows and income distribution of MFIL are completed by smart contracts or by third-party asset management institutions. In addition, the multiple signing mechanism helps to reduce the risk of unilateral asset transfer or failure of the DAO due to unilateral issues;
Stable operation & maintenance
MFIL has its own blockchain browser and a complete network wide node O&M management monitoring system；Monitor the operation of each node in the MFIL ecosystem in real-time 7 * 24 hours; Notify SPs and relevant personnel in a timely manner to handle potential risks as soon as possible; In extreme cases, data can also be transferred for remote disaster recovery to ensure the safety of assets on nodes and stable output；
Transparency & fairness：
All asset management and income distribution on MFIL is completed through smart contracts or compliant third-party asset management institutions, ensuring transparency and accountability on the blockchain. The rules and processes are recorded on the chain, making them traceable and auditable.
All decisions of the DAO are made through a decentralized and democratic process, with participation from the community. This ensures that the entire process, from decision-making to result, is transparent, open, and fair. This promotes a virtuous structure of community building and win-win results for all parties involved in the ecosystem；
High liquidity & yield：
FIL holders face a trade-off between pledging their FIL for 1-2 years at on-chain nodes and losing liquidity in exchange for stable mining returns, or giving up mining proceeds to obtain liquidity to hold FIL. However, with the introduction of MFIL, FIL holders can obtain stable mining returns without making a long-term pledge and still have the flexibility to trade and exchange MFIL for FIL or other assets. This allows FIL holders to achieve both liquidity and stable returns, without having to sacrifice one for the other；
Strong expandability：
Compared to FIL, MFIL has multiple attributes, including mining revenue rights, that can be endowed with various application scenarios such as pledge lending, liquidity mining, and community governance by DAO. With these attributes, MFIL can fully mobilize participants and resources within the ecosystem, expanding to richer application scenarios, more efficient asset management methods, and greater market potential.
Further more, when comparing with traditional lending, staking or co-mining models, MFIL also shows superiorities such as：
Good liquidity, flexibility and efficiency
In MFIL, token holders only need to exchange FIL for MFIL to share their daily mining income with SP. Meanwhile, SP can circulate pledged currency that needs to be locked up for hundreds of days in advance. Therefore, MFIL provides both parties with flexible and efficient liquidity solutions.
However, the traditional ways are Lack of liquidity and only have fixed form of services and lockup period. Neither SP nor users can use the principal in advance, and can only distribute income/interest on a weekly or monthly basis, resulting in poor asset liquidity.
High yield, low threshold and risk
MFIL protocol only charges a small amount of mining output to maintain the operation of the DAO, without earning interest margin and high technical service fees. There is no minimum threshold in the protocol which allows all user to participate in the ecosystem to gain revenue. In the same time, all assets are transparent and verifiable, managed jointly by the community and third-party institutions, with low risk.
While the traditional lending & comining are centralized operations which has higher risk and are not transparent. Exchanges and large lending and mining institutions earn more dividend and interest, not mention their thresholds making their services are only available for few big token holders. Last but not the least, Enormous centralized entities such as exchanges and SPs have been investigated or shut down by regulators or just run away by themself. The risks are more uncontrollable than the decentralized protocol.
Compound asset with multiple benefits
MFIL users can participate in the construction of DAO while holding MFIL to strive for more benefits. Also users can use MFIL to participant in FIL and many other DEFI projects, and one action can generate multiple benefits. Profit can be further increased by leveraging with staking and other means.
However, the only source of income from joint mining/borrowing is a share of mining output or a fixed interested rate. Users have no other sources of income or opportunity to leverage their asset by joining other DEFI protocols. There is also no possibility to obtain multiple benefits.
Last modified 6mo ago