Filecoin, which has become one of the largest decentralized storage projects on the market after launching in October, is getting a boost from crypto custody provider Anchorage to access liquidity from the DeFi industry.
Anchorage announced yesterday the release of Wrapped Filecoin (wFIL) in cooperation with Tokensoft and investment firm CMS Holdings. Wrapped Filecoin, part of the Wrapped program designed to bring cross-chain assets to the Ethereum blockchain, could bring much-needed liquidity to the nascent Filecoin storage market, while helping DeFi protocols generate returns for users.
DeFi, short for decentralized finance, is a group of protocols designed to provide financial services like those of traditional banks without relying on centralized infrastructure.
Wrapped cross-chain tokens have become an important part of the DeFi mix. Solutions like Wrapped Bitcoin have helped bring more than $2.3 billion of value to the DeFi ecosystem, according to DeFi data provider DeFi Pulse. Like wBTC, wFIL uses a system of custodians to hold the underlying asset (in this case Filecoin’s native FIL tokens) and issue 1:1 “wrapped” token versions on blockchains like Ethereum. Continue Reading