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How does Repl work?

Repl tokenizes locked FIL in the Filecoin Protocol and enables liquidity and extended utilities for these pledged assets.

There are three main components of the Repl Protocol.

  • Tokenizing Pledged FIL: Any storage provider can pledge a MinerActor to the Repl Protocol to repledge their locked assets. For every locked FIL that’s considered safe, the storage provider can mint pFIL tokens at a 1:1 ratio.
  • An Open Market for pFIL: Storage providers can withdraw FIL by unstaking their minted pFIL to obtain liquidity, and token holders can stake their FIL to acquire pFIL tokens and reap FIL mining returns. pFIL tokens can also be used in additional use cases such as restaking to secure new networks on Filecoin.
  • Risk Recovery and Reward Distribution: When pledged FIL used to mint pFIL is unlocked, it will be put up in an auction for pFIL. The pFIL that is acquired from the auction will be burnt to reduce the supply of pFIL and the outstanding pFIL amount of the corresponding miner actor will be reduced accordingly. Based on the current pFIL/FIL ratio, new pFIL will be passively minted and distributed to pFIL holders as rewards.
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The Process Flow of the Repl Protocol​

Tokenizing Pledged FIL:

  1. SPs repledge Miner Actors by delegating ownership to Repl.
  2. Repl evaluates safePledge based on asset structure and risk of MinerActors.
  3. Repl allows SPs to mint pFIL 1:1 to pledged FIL up to the safePledge amount.
  4. After Repl has recovered liquid FIL from the MinerActor, it will put the FIL up for Auction
  5. The amount of pFIL acquired by Repl from the auction will be used to reduce the outstanding pFIL amount of the MinerActor.
  6. SPs can also expedite the process by manually topping up pFIL or FIL to reduce their outstanding pFIL amount.
  7. After the outstanding pFIL amount is reduced to zero, SPs can claim back their MinerActors.

An Open Market for pFIL:

  1. SPs can then unstake their pFIL into FIL or use pFIL for additional utilities.
  2. Token holders can acquire pFIL by staking FIL to gain exposure to FIL mining and reap pFIL rewards.
  3. pFIL can be restaked to secure new networks or can act as a reward-generating building block for other DeFi solutions or trading strategies.

Risk Recovery and Reward Distribution:

  1. Each batch of liquid FIL obtained from each MinerActor will be put up in an auction for pFIL based on the pFIL/FIL ratio.
  2. The pFIL that is acquired by Repl from an auction will be burnt to reduce the supply of pFIL and the outstanding pFIL amount of the corresponding MinerActor will be reduced accordingly.
  3. Based on the current pFIL/FIL ratio, new pFIL will be passively minted and distributed to pFIL holders as rewards.