GENERAL OVERVIEW OF LEVERAGED STAKING
INTRODUCTION
The creation of rToken by StaFi protocol system ensures the flowing of financial resources and seamless transition of staked assets on the POS mechanism system. This token was designed in a simple manner with an unique underlying structure which is anchored to customary tokens with their respective staking benefits. These unparalle unique features makes rToken as an ideal tools which can be used as a colletaral in the borrowing process on the system platform.
Token holders can seamlessly deposit their rToken assets on any lending platform in exchange for other tokens. This factors is one of the primary reason which makes StaFi protocol system to partnership with one of the leading platform system in the Blockchain system know as Liqee which resulted to creation of an advanced lending system know as leverage staking for community members in the ecosystem.
About Leveraged Staking
Leverage staking is a platform system where user’s can implement the use of rToken to borrowed out customary token through exploration of tha system mechanism and also stake on the customary token through StaFi rToken application system which will technically result to multiple staking. Therefore, output will be in a multiple fold in terms of return or reward on the amount staked.
MECHANISMS ON HOW LEVERAGED STAKING WORKS
If a user stake 20 Atoms using the StaFi application system and he received 20 rATOM in the exchange ratio of 1:1 plus a bonus staking APY of a certain percentage of like 50% . The money user deposited will anchor the capital investment of 20 ATOM in which the returns will be maximazed or actualized on the given percent amount the system process during staking. Therefore, the users can re-stake his reward to receive multiple fold through exploration of Leverage mechanism system in which a relatively high return yield is possible based on the market value at the maturity end of its staking asset’s.
HINT OF STAKING REWARD
The rATOM of StaFi application system is on APY reward is estimated to around 8.08 percentage. The data analysis means that we can represent the value of X as 8.08, Considering the market current exchange value of both tokens of ATOM and rATOM is around 1.03 approximately to (2dp), and also the maximum lending interest rate on Liquee platform is of different values depending on the given tokens. This analysis can be estimated to get the actual staking reward on the application system.
CONCLUSION
The introduction of leverage staking is a long term goal which will works in conjunction with rToke to create dynamic stable yield and also generate further income for community members and the stakers on the platform in a multiple fold. This means that’s stakers can borrow a token on the application system using rToken as collateral to stake and earn maximum reward on a multiple fold. User’s can explore the borrowing platform to find out the interest rate difference between the customary token and the rToken for maximizing the output of APY value.
This is indeed great opportunity for all the staker and share holders in the ecosystem to explore the use of leverage staking for greater return yield.
For more relevant information, visit https://www.stafi.io
Article Written By : Adasofunjo Michael Oluseye
