# Benefits for Storage Providers

## **Value proposition**

* **Maximized Profits**: Leverage our deep understanding of the Filecoin economy to boost your mining rewards by up to 40% and achieve profitability 50 days sooner per onboarded sector.
* **Predictable Profits**: With Collectif DAO's profit-sharing model, Storage Providers can predict their earnings, ensuring a consistent percentage of mining rewards despite market volatility.
* **Boost Your FIL Rewards:** By collateralizing their FIL, Storage Providers can access more FIL for pledges, maximizing their FIL-on-FIL rewards.

## Main Benefits for SPs

> Why Filecoin storage providers should use liquid staking to get access to FIL for pledges?

Liquid staking empowers storage providers to grow their storage capacity without concerning themselves with pledge requirements. This conserves resources, enabling a focus on enhancing their storage quality and reliability.

The Collectif DAO liquid staking protocol provides storage providers access to FIL capital with superior capital efficiency compared to other market solutions. The protocol's collateral requirements are limited to the risks associated with the total number of sectors supported by the storage provider.

Storage providers can access FIL capital on-demand, obtaining it on a daily basis. This saves them from paying interest on non-utilized FIL for pledges, compared to under-collateralized lending. SPs can adjust their FIL allocation at any moment based on their data center expansion plans.

A share of the rewards storage providers gain from participating in liquid staking is intended to be as capital efficient as possible. To make liquid staking appealing for both stakers and storage providers, the Collectif DAO governance is designed to respond to the fast-changing Filecoin mining market conditions.


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