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This is a list of frequently asked questions from Storage Providers
The onboarding process with Collectif DAO starts by filling out a form here. After finishing the form Collectif DAO team would contact SP, to discuss the requirements in detail. Once SP is agreed to participate in Collectif DAO, it could register on the smart contract by providing the total FIL allocation and Miner ID.
Before integrating an SP into Collectif DAO, we conduct an analysis of on-chain mining history to identify performance patterns over time. The analysis encompasses an evaluation of Quality-Adjusted Power (QAP) and Raw Byte Power (RBP) growth or decline (particularly in relation to the impact of certain Filecoin network upgrades), sector uptime, reward generation, and more.
Only SPs demonstrating long-term alignment with Filecoin's vision, adherence to security best practices, and solid historical performance are onboarded. Furthermore, it's a requirement for SPs to have an emergency relocation plan to tackle natural disasters or other unforeseeable incidents.
Collectif DAO Liquid Staking protocol operates under the profit-sharing model with SP. At the moment it takes 40% of mining profits when the rewards are withdrawn from the Miner ID. The remaining 60% are distributed to the SP owner ID every time when Collectif DAO distributes mining rewards.
The total allocation required by SP could be the expected amount of FIL they will need to pledge to onboard their storage capacity. If SP plans got changed and they need to increase the allocation they can request the allocation update directly by interacting with the Liquid Staking protocol.
Total allocation distribution is dependent on the total number of sectors expected to be pledged in the future and sealing capacity per day. Based on those numbers Collectif DAO determines the daily FIL allocation, which is distributed to the SP on a daily basis.
As Filecoin network incentives are constructed to minimize the probability of data loss, it’s essential to follow the same directive, otherwise, the systemic risks get applied to the whole network. When pledging funds from the Collectif DAO Liquid Staking protocol SP has to provide collateral to cover the potential losses that might happen if there is a slashing event.
There are two main forms of collateral in the liquid staking protocol: external collateral in the form of FIL, and existing initial pledge from the owner ID.
- External collateral is deposited as FIL amounts to the collateral system smart contracts. Those smart contracts use the collateral once slashing happens in the Filecoin network, and deliver the slashing amount to the liquid staking pool. In case SP wants to remain in control of their Owner ID the only option for them is to use external collateral.
- The existing Initial pledge as a form of collateral is another form of collateral that require SP to share ownership of the Owner ID. The Owner ID control is required for the system to perform terminate/extend sector operations. This form of collateral is considered to be illiquid and requires the termination of existing sectors in order to cover the losses which happen in slashing. The existing initial pledge collateral is calculated as the amount of initial pledge that a particular Miner ID has under their account in the Filecoin network. This form of collateral helps SP to reduce the cost of collateral, meaning that they could get a bigger allocation by utilizing their existing funds.
- SP collateral is used once the slashing event happens on the Filecoin network. Once slashing is identified on Filecoin, the slashing amount is transferred from the collateral contract to the liquid staking pool. It’s important to keep in mind that collateral delivery doesn’t reduce the total requirements to cover the pledges, and to pledge more FIL from liquid staking pool SP is expected to increase the collateral amount back.
- In a case with existing initial pledge collateral, the system requires the termination of some of the existing sectors to cover the losses in slashing. After those sectors terminated the released initial pledge funds are withdrawn from the Miner ID to the liquid staking pool to cover the losses.
Does Collectif DAO control SP owner ID? How does it guarantee that capital from the liquid staking pool goes into Miner actor pledges?
Collectif DAO doesn’t require taking control of SP’s owner ID. Instead, it works with a beneficiary address. This provides a guarantee that SP’s mining rewards would be distributed to the Liquid Staking pool, and any capital pledged from LSP goes directly to the miner actor pledges.
How could SP connect to the Collectif DAO protocol to pledge the capital from the Liquid Staking pool?
To automate the pledging process from the Liquid Staking pool SP could integrate an SDK into their existing pipelines with Lotus/Venus. This SDK allows SP to pledge capital from the pool either on a daily basis or on any new sector that is going to be sealed. At the moment daily capital delivery is used to reduce the total amount of gas fees SP would spend by working with Collectif DAO.
Generally, the gas fees associated with the sector's lifetime are paid by the SP. Liquid Staking pool covers the PreCommit Deposit, Initial Pledge, and additional requirements (like x10 initial pledge for FIL+ sectors). When SP pledges the capital from the Liquid Staking pool gas transactional gas costs are paid by them. When it comes to rewards distribution Collectif DAO covers transaction costs by withdrawing mining rewards on a daily basis.