Digital asset manager DARMA Capital announced the launch of Filecoin Asset Use Swap, the first of its kind swap based on Filecoin.
DARMA Capital has secured product approval from the CFTC.
A financial instrument involves the exchange over a certain period by two parties of cash flows generated by two different assets.
With the launch of FAUS, the firm will be able to lend $100M worth of FIL tokens in its possession to customers. The tool eliminates the need for users to purchase the underlying asset, allowing them to earn income through the PoS mechanism.
The term of the contract varies from 1.5 to 2.5 years. To participate, you will need to meet KYC/AML requirements.
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In the latest interview, DARMA managing partner Andrew Case noted that for a certain category of storage space providers, the requirement to purchase FIL is an obstacle.
“People are accustomed to bitcoin mining, where electricity, real estate, and equipment are needed,” he explained. Unlike many crypto lending projects that require collateral between 80% and 150% of the loan amount, FAUS only needs 5% of that amount to cover the risk of slashing.
“Based on the current conditions in the Filecoin network, custodian miners earn about 60-80% of tokens,” the company’s calculations cited.
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By minimizing capital costs, FAUS allows space providers to increase their participation and increase block rewards. The tool promotes network support, not FIL speculation, the firm said.
DARMA noted that thanks to their product, the network can gain greater diversification - according to their estimates, 65% of the storage capacity is provided by participants from China.
The company is counting on interest from residents of the US, Europe, and Australia. The first group of FAUS participants increased the network capacity by 600 pebibytes.
Recall that in January, the CFTC fined the Polymarket prediction platform $1.4 million for servicing trading in over-the-counter binary options without proper registration.