Mirrored from filpgf.io — ProPGF Batch 3 (Karma program 1479, application 6a2cfb8b31f8bfa184d498f6, status: pending). Contact details redacted; canonical application lives on filpgf.io. 1.1 Project Name FVM Stablecoin Settlement Infrastructure Program 1.2 Project Github https://github.com/secured-finance 1.3 Project Website https://secured.finance/ 1.4 Team Lead/Point of Contact Kenji Mitsusada, Head of Markets, Slack or TG 1.5 Category [ "Core Infrastructure" ] 1.6 Open Source Status Fully Open Source 2.1 Project Summary Secured Finance proposes to establish and evaluate a Stablecoin Settlement Infrastructure Program for the Filecoin ecosystem through the USDFC–axlUSDC liquidity layer. Today, stablecoin liquidity on FVM remains fragmented and shallow, creating higher slippage, reduced transaction capacity, and increased friction for users, applications, and bridge activity. While stablecoins are expected to play an increasingly important role in the Filecoin economy, there is currently limited data on the liquidity requirements needed to support efficient settlement and routing at scale. This project will deploy a limited pilot liquidity program and systematically measure its impact on settlement capacity, transaction execution quality, routing efficiency, and stablecoin stability. The objective is not simply to increase liquidity, but to generate practical benchmarks and publicly available insights that can guide the development of stablecoin settlement infrastructure across Filecoin. The resulting findings will help builders, applications, wallets, bridges, and ecosystem participants better understand the liquidity requirements needed to support scalable economic activity on FVM. 2.2 Who does this work support? [ "Application Builders", "Application Users", "Network Infrastructure", "Other" ] 2.3 Total Funding Requested (USD) 300,000 2.4 Milestones & Budget [ { "title": "Stablecoin Settlement Infrastructure Discovery", "description": "This milestone establishes the first phase of a Stablecoin Settlement Infrastructure Program for the Filecoin ecosystem.\n\nThe USDFC–axlUSDC liquidity pool serves as an important settlement layer connecting stablecoin liquidity, bridge activity, and DeFi applications on FVM. However, current liquidity levels remain limited, creating higher slippage and reduced transaction capacity for users moving capital across the ecosystem.\n\nDuring this milestone, approximately $120,000 of grant funding will be deployed as a pilot liquidity support program into the USDFC–axlUSDC pool, while up to $20,000 will be used for ecosystem participation initiatives designed to encourage stablecoin usage and engagement. The remaining funding will support measurement, analysis, and reporting activities necessary to evaluate the impact of the pilot.\n\nGrant-funded liquidity support will be deployed into the USDFC–axlUSDC pool on SushiSwap (Filecoin Virtual Machine) and managed by Secured Finance through a dedicated multi-signature wallet. Liquidity principal remains earmarked for the settlement infrastructure program and is not intended for operational expenses, treasury diversification, or team compensation. Any fees generated during the pilot period will remain within the program and may be used to support ongoing settlement infrastructure activities, measurement, and evaluation.\n\nThe objective of this phase is to better understand how liquidity depth affects settlement capacity, swap execution quality, routing activity, and stablecoin stability across the Filecoin ecosystem.", "dueDate": "2026-08-31", "fundingRequested": "$150,000", "completionCriteria": "1. Deploy approximately $120,000 of pilot liquidity support into the USDFC–axlUSDC settlement pool.\n\n2. Execute ecosystem participation initiatives designed to encourage stablecoin usage and engagement within the Filecoin ecosystem.\n\n3. Measure and track:\n\n * Pool TVL\n * Trading volume\n * Stablecoin routing activity\n * Slippage across predefined trade sizes\n * USDFC peg stability\n\n4. Measure the maximum executable trade size under a 0.1% slippage threshold.\n\n5. Publish a summary report describing:\n\n * Liquidity deployment outcomes\n * Slippage observations\n * Settlement capacity observations\n * Stablecoin stability observations\n * Key findings from Phase 1" }, { "title": "Stablecoin Settlement Infrastructure Validation & Scaling", "description": "This milestone expands upon the observations gathered during Phase 1 and further validates the liquidity requirements needed to support a scalable stablecoin settlement layer on FVM.\n\nApproximately $140,000 of grant funding will be deployed as additional pilot liquidity support into the USDFC–axlUSDC pool. The rem …[truncated] 3.1 Impact pathway This project primarily contributes to Objective 2: Strengthen Network Profitability & Cryptoeconomics. Output Deploy pilot liquidity support into the USDFC–axlUSDC settlement pool and measure the impact of increased liquidity on stablecoin settlement capacity across the Filecoin ecosystem. Outcome Increased liquidity reduces slippage, improves transaction execution quality, strengthens stablecoin stability, and increases the amount of capital that can be efficiently routed through FVM. Builders, applications, bridge users, and ecosystem participants gain access to a more reliable stablecoin settlement layer. Impact A more efficient stablecoin settlement infrastructure lowers friction for economic activity on FVM and supports broader adoption of Filecoin-based applications. The proposed metrics serve as leading indicators of transaction capacity, capital efficiency, and stablecoin usability across the Filecoin ecosystem. 3.2 Verification metrics Metric: USDFC–axlUSDC Pool TVL Data Source: GeckoTerminal and on-chain pool data How It's Measured: Total value locked in the USDFC–axlUSDC pool Target (End of Grant): Phase 1: >$170,000 Phase 2: >$300,000 This serves as a leading indicator of settlement capacity and transaction efficiency on FVM. Metric: Maximum Executable Trade Size Below 0.1% Slippage Data Source: SushiSwap routing quotes and on-chain swap simulations How It's Measured: Largest stablecoin transaction executable while maintaining price impact below 0.1% Target (End of Grant): Baseline: ~$3,000 Phase 1: >$10,000 Phase 2: >$20,000 This represents the amount of capital that can be efficiently settled through the stablecoin settlement layer on FVM. Metric: Stablecoin Slippage Curve Data Source: SushiSwap routing quotes How It's Measured: Slippage measured at predefined trade sizes ($1k, $5k, $10k, and $20k) Target (End of Grant): Demonstrated reduction in slippage relative to baseline measurements across all predefined trade sizes. This serves as a leading indicator of transaction quality and user experience for stablecoin transfers and routing activity on FVM. Metric: USDFC Peg Stability Data Source: GeckoTerminal market price data How It's Measured: Deviation of USDFC market price from $1.00 over the observation period Target (End of Grant): Improved price stability relative to baseline observations. This represents the reliability of stablecoin-based economic activity and settlement infrastructure on FVM. These metrics are intended to serve as leading indicators of capital efficiency, stablecoin usability, and economic activity on FVM, which collectively contribute to Objective 2: Strengthen Network Profitability & Cryptoeconomics. 3.3 References Andreas Tsamados `Head of DeFi, Filecoin Foundation ` Ecosystem stakeholder supporting the growth of DeFi and stablecoin infrastructure across the Filecoin ecosystem. Nandit Mehra `Founder, Lighthouse ` Application builder and ecosystem participant familiar with Secured Finance and USDFC. Lighthouse is a potential beneficiary of improved stablecoin settlement infrastructure, liquidity depth, and payment capabilities on Filecoin. Jonathan Schwartz `Founder, GLIF ` Core Filecoin ecosystem builder and long-term collaborator of Secured Finance. GLIF and Secured Finance have partnered to expand DeFi activity and liquidity infrastructure on FVM. Improved stablecoin settlement infrastructure directly benefits liquidity, collateral mobility, and broader DeFi participation across the ecosystem. 4.1 Monthly Operating Burn [ "$10-$100K (small team)" ] 4.2 What % of total team monthly burn depends on this grant? Less than 10% 4.3 If this grant is not awarded, what happens? Secured Finance can continue operating without this grant. However, the stablecoin settlement infrastructure pilot would likely be delayed or reduced in scope, as the program requires dedicated liquidity support to generate meaningful observations across multiple liquidity regimes. The primary purpose of the liquidity deployment is not to subsidize trading activity, but to enable the measurement of settlement capacity, transaction efficiency, and stablecoin infrastructure requirements on FVM. The resulting findings will be shared publicly and are intended to benefit the broader Filecoin ecosystem. 4.4 Core Team Masa Kikuchi – Founder & CEO, Secured Finance Masa leads the overall architecture, product direction, and ecosystem coordination for Secured Finance and USDFC. He brings deep expertise in fixed-income markets and financial engineering, with prior experience leading rates and FX derivatives structuring at HSBC. Masa oversees protocol design decisions, stablecoin infrastructure development, ecosystem partnerships, and alignment with Filecoin stakeholders to ensure USDFC serves as durable financial infrastructure for the Filecoin ecosystem. Kenji Mitsusada – Head of Markets Kenji is responsible for market design, liquidity strategy, and risk management across the Secured Finance platform and USDFC ecosystem. Prior to Secured Finance, Kenji spent 14 years at Goldman Sachs in rates and FX trading and later served as a portfolio manager at a fixed-income hedge fund. He brings deep expertise in market microstructure, liquidity provisioning, fixed-income markets, and stress-event analysis. Kenji leads the design of stablecoin liquidity frameworks, settlement infrastructure, liquidity deployment strategies, and mechanisms to improve capital efficiency and transaction capacity across the Filecoin ecosystem. Aki Tanaka – Smart Contract Lead Aki is responsible for smart contract design, implementation, and security for USDFC and related on-chain infrastructure. He has extensive experience as a lead engineer and software architect, including work on tokenization and blockchain-based financial systems. Aki leads the development and audit coordination of USDFC core contracts, liquidity infrastructure components, and related FVM deployments supporting the Filecoin ecosystem. 4.5 Has your team received a ProPGF grant or funding from PLFIF before? [ "Yes" ] 5.1 Key risks & dependencies The primary dependency for this project is the availability of liquidity venues and routing infrastructure on FVM, including SushiSwap and related ecosystem integrations. Market conditions may also affect stablecoin trading activity, liquidity utilization, and the speed at which ecosystem participants engage with the USDFC–axlUSDC settlement pool. As a result, some observed metrics may be influenced by external market conditions beyond the control of Secured Finance. However, the core activities of this project—liquidity deployment, measurement, analysis, and reporting—remain achievable regardless of market conditions. Findings generated through the program will remain valuable to the broader Filecoin ecosystem even if adoption occurs more gradually than anticipated. Any feedback you have on the application process? Thank you for your continued support of builders and public goods across the Filecoin ecosystem. Anything else you want to share that we didn't ask? This proposal focuses on stablecoin settlement infrastructure as a foundational layer for economic activity on FVM. We believe that improving stablecoin liquidity, settlement capacity, and transaction efficiency can benefit a broad range of applications, builders, and ecosystem participants across Filecoin. Contributing to Core Infrastructure? Secured Finance operates core fixed-income and stablecoin infrastructure on the Filecoin Virtual Machine (FVM), including the USDFC stablecoin and on-chain lending markets. This proposal focuses on expanding the critical stablecoin settlement infrastructure between USDFC and axlUSDC. The USDFC/axlUSDC liquidity pool acts as a key routing layer for swaps, bridge transactions, and stablecoin-based applications across the Filecoin ecosystem. Today, limited liquidity in this pool results in higher slippage, weaker price stability, and friction for users moving capital into and across FVM. By progressively expanding liquidity and incentivizing ecosystem participation, this project will improve routing efficiency, strengthen USDFC's peg stability, and provide a more reliable settlement layer for applications, wallets, bridges, and end users. The resulting infrastructure is open, permissionless, and available to all participants building on Filecoin. Karma Profile 0x8dde476a5e0b221a1bd168df2ccea030df7b81cc55825da21c9e1ff1f7e116a1 Objective 1 Indirect Objective 2 Direct Objective 3 Indirect