Application for Filecoin ProPGF Batch 3

FVM Stablecoin Settlement Infrastructure Program

https://github.com/secured-finance

https://secured.finance/

Kenji Mitsusada, Head of Markets, Slack or TG

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.

Fully Open Source

Secured Finance operates core fixed-income and stablecoin infrastructure on the Filecoin Virtual Machine (FVM), including the USDFC stablecoin and on-chain lending markets. Our objective is simple: make USDFC genuinely usable on FVM. This restructured proposal funds three work streams: 1. USDFC vault user onboarding and reporting. The USDFC vault (developed under ProPGF Batch 2, deployment imminent) gives FVM users a transparent on-chain yield option. This proposal funds the user-facing layer: onboarding documentation and recurring public performance reporting so any ecosystem participant can understand and use it. 2. USDFC enablement on Squid Router's intent solution. Squid has already integrated Filecoin and deployed intents there (funded via PL-FIF). Enabling USDFC natively on Squid intents lets solvers fill USDFC ↔ USDC/USDT directly across chains — reducing slippage and reducing dependence on intermediary assets such as axlUSDC. The build sits primarily on Squid's side; this milestone funds Secured Finance's integration support. 3. Measurement and public reporting. In parallel, on-chain liquidity on FVM SushiSwap and intent-side liquidity are being arranged as a separate commitment with PL-FIF. This proposal funds the objective, public measurement of that program — settlement capacity, slippage, peg stability — so the entire ecosystem learns what liquidity levels stablecoin settlement on Filecoin actually requires. Liquidity capital itself is explicitly not part of this request; it is being arranged separately with PL-FIF and is acknowledged in Section 5.1. The resulting infrastructure and findings are open, permissionless, and available to all participants building on Filecoin.

65,000

Indirect

Direct

Indirect

This project primarily contributes to Objective 2: Strengthen Network Profitability & Cryptoeconomics. Output Enable USDFC natively on Squid Router's intent solution, ship user onboarding and public performance reporting for the USDFC vault, and publish objective public measurements of stablecoin settlement performance on FVM across the liquidity program arranged separately with PL-FIF. Outcome USDFC holders gain direct, low-friction settlement into major stablecoins (USDC/USDT) across chains via solver fills, without dependence on intermediary pass-through assets. FVM users gain a transparent, well-documented on-chain yield option through the USDFC vault. The ecosystem gains externally verifiable data on how liquidity depth and settlement architecture affect execution quality, capital efficiency, and peg stability. Impact A more efficient, capital-light stablecoin settlement architecture lowers friction for economic activity on FVM and supports broader adoption of Filecoin-based applications — including paid onchain deals settling in stablecoins (Objective 1, indirect). Intent-based settlement reduces the standing liquidity the ecosystem must maintain, and public reporting ensures all findings benefit every participant building on Filecoin.

Metric 1: USDFC Live on Squid Intent Solution Data Source: Squid Router frontend and on-chain settlement transactions How It's Measured: USDFC listed and fillable by solvers; end-to-end USDFC → USDC/USDT settlements verifiable on-chain Target (End of Grant): Mainnet launch with demonstrated solver fills and published execution-quality measurements Metric 2: Intent Execution Quality Data Source: Squid routing quotes and settled intents How It's Measured: Effective price vs. reference price at predefined trade sizes ($1k, $5k, $10k, $20k); fill rate Target (End of Grant): Published baseline and comparison against pool-based execution Metric 3: Stablecoin Slippage Curve & Maximum Executable Trade Size (measurement only) Data Source: SushiSwap routing quotes and on-chain swap simulations How It's Measured: Slippage at predefined trade sizes; largest transaction executable below 0.1% and 1% price impact Target (End of Grant): Baseline, interim, and final measurements published across the PL-FIF-funded liquidity stages. Note: liquidity deployment that moves these numbers is funded separately via PL-FIF; this grant funds objective measurement and reporting. Metric 4: 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): Published stability observations relative to baseline Metric 5: USDFC Vault Adoption & Transparency Data Source: On-chain vault data; public reporting surface delivered in Milestone 1 How It's Measured: Vault TVL, realized yield, deposit/withdrawal flows, and depositor counts, published on a recurring basis Target (End of Grant): Onboarding documentation live, ecosystem support delivered, and recurring public performance reports published showing vault usage growth over the adoption period These metrics collectively serve as leading indicators of capital efficiency, stablecoin usability, and economic activity on FVM, contributing to Objective 2: Strengthen Network Profitability & Cryptoeconomics.

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.

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.

Squid integration dependencies. The scope of Milestone 2 depends on Squid's intent specification (expected shortly) and on confirmation that Squid's market maker can operationalize USDFC's mint/burn and redemption mechanics for inventory rebalancing. Scope and timeline will be updated if requirements differ from current understanding. Liquidity capital (separate PL-FIF commitment). The measurement program (Milestone 3) measures the impact of liquidity being arranged separately with PL-FIF: on-chain SushiSwap pool liquidity and solver-side USDFC liquidity for the Squid integration. If that commitment is materially delayed or reduced, Milestone 3 will still deliver baseline and comparative findings, but observed improvements will be correspondingly smaller. Vault launch timing. Milestone 1's adoption program begins from the vault's launch on FVM, which is in final preparation. A delay in launch timing would shift the adoption program's start correspondingly. Market conditions. Stablecoin trading activity, liquidity utilization, and adoption speed may be influenced by external market conditions beyond the control of Secured Finance. The core activities of this project — integration support, onboarding, measurement, analysis, and reporting — remain achievable regardless of market conditions.

This application was restructured following guidance from PL-FIF. The original submission requested $300,000, most of which was liquidity deployment capital; per that guidance, liquidity capital has been removed from the ProPGF ask entirely and is being arranged as a separate commitment with PL-FIF. This application now covers integration, onboarding, and measurement/reporting work only. We believe the combination of intent-based settlement (reducing standing liquidity requirements), a transparent on-chain yield option through the USDFC vault, and objective public measurement provides durable, capital-efficient stablecoin infrastructure for the entire Filecoin ecosystem.

Thank you for your continued support of builders and public goods across the Filecoin ecosystem.