StaFi Network provides an exchange rate discounting solution for a more beneficial DeFi experience.
Over the past few months, StaFi has gone out of their way to consistently provide their community with great features, developments and of course proposals. And the ERD Solution isn’t an exception. In Today’s article we’ll be diving into the proposal that StaFi has initiated which is the aforementioned ERD (Exchange Rate Discounting) solution, it was initiated to be a supplementary means of solving Liquidity issues for r- token quickswaps.
An outlined info on what the StaFi platform entails will be detailed below, before delving into the discussion.
STAFI NETWORK
StaFi network is simply the 1st DeFi based network which was developed to unlock the Liquidity of different staked assets. Various fund holders can now be able to stake through staking contracts on StaFi & receive derived token called r- tokens, these r- tokens include; r- ETH, r- ATOM, r-DOT and so on. These r- tokens are simply synthetic staking derivatives which will be issued to users through StaFi when they stake PoS coins on the r- token app. It’s important for individuals to know that the r- tokens will always be active for exchanges. The platform recently announced their proposal for the ERD solution to their community. Since it’s a proposal, it’s all in hands of the community to make it come to reality. Below will be the details on the Solution.
THE ERD SOLUTION
In order to develop the r- token Liquidity scenario, the platform will enable ERD solution in order to facilitate the redemption of Native tokens for the users. As for it’s core enterprise logic, they drew experience from the bill discounting concept utilized in conventional finance. In other words, they regard the r- token as a Bill enabled by the protocol that anchors the individual’s right to access a specific amount of Native Coins within a specific period. Below will fully illustrate the bill discounting flow
- An issuer of the bill issues a forty five day acceptance bill to the bill holder.
- The bill holder wishes to obtain the token really soon, so instead of waiting for forty five days, the holder then chooses to do bill discounting with a financial provider.
- The Financial provider then deposits cash to the bill holder at a 90 percent discount & then gets the bill exercise.
- After forty five days, the issuer of the will then pay the financial provider the total amount of the bill.
ERD SOLUTION ADVANTAGES
With the assistance of ERD solution, the StaFi platform will develop a really inclusive Liquidity network for all holders of the r- token. Below are the important advantages that ERD solution will grant to the community:
- Third- Party Decentralized Exchange, this sort of exchange will help most of the mobile exchange scenerios like Pancake, Uniswap and so on. Which have been bridged to the StaFi system.
- Lending System, the lending medium permits r- token operators to mortgage loans in order to meet the Liquidity requirements.
- The ERD solution also helps various r- token operators to trade Liquidity at a convenient rate of exchange even when under extreme times like Alice’s dilemma, while enabling for the r- token trading rate on thirdparty DeXs.
CONCLUSION
The StaFi platform has already completed most of the development schemes for the ERD solution, however it’s all in the hands of the community for whether it should be implemented or not. The platform is going to hold the release of the Solution until a positive response is provided by the community. In my opinion, it’s truly a brilliant initiate as it will enable various user to convert r- ATOMs to ATOMs instantly while facilitating sectors such as the Lending system.
For more relevant information, visit https://www.stafi.io
Article Written By : Adasofunjo Michael Oluseye
