STAFI PROTOCOL — SOLVING MAINNET AND TOKEN LIQUIDITY ISSUES IN A POS CONSENSUS THROUGH RTOKEN ISSUANCE

INTRODUCTION

The concept of DeFi and cryptocurrency seems to be the most talked about in the world of finance today, decentralized finance is the much needed alternative for attaining financial freedom, it proffers services which average crypto users can leverage on to achieve a better financial life.

One of the major ways through which DeFi subscribers can add value and benefit more from their crypto assets is Staking.

What is staking?

This involves the active participation of a node in transaction validation in a Proof of Stake (PoS) blockchain. On the blockchain, a minimum balance of tokens is stipulated as the benchmark and anyone who has such amount of token is considered eligible to validate transactions, and earn massive staking rewards in the process.

Unfortunately, most staking protocols seem to lack the quality and mechanism to give users the kind of staking experience they deserve, that is why STAFI was introduced.

STAFI AND ITS rTokens

STAFI stands for Staking Finance, it is a decentralized protocol designed to provide liquidity of staked assets. This protocol is developed to address the issue between mainnet and token liquidity in a Proof of Stake consensus.

In staking finance, token holders are provided with staking contracts within the Stafi protocol to inject their tokens(stake) and are issued with alternatibe tokens(rTokens).

THE RTOKEN

rTokens are alternative tokens presented to stakers through the staking contract on the stafi protocol; Some of these rTokens include the rEth for the Ethereum based assets, rSFI for Stafi network and the rDOT for Polkadot network.

The interesting thing is that holders of these rtoken are eligible to incentives from staked assets, also the token is tradable on diverse platforms within the market. Immediately the transaction is finalized, the contract will automatically adjust the incentive and redemption rights.

The rTokens represent the right of a staker to redeem his staked assets as well as the rewards attached to them whenever he desires, this token also sustains stakers participation in voting on proposals and on-chain governance.

GENERATING THE rTokens

There are technically two ways through which a participant can get his hand on the rTokens.

Considering that a participant has to wait until the stipulated lock up period for staked assets is exhausted before he can receive rewards or have access to his assets, his ability to trade becomes limited because it is impossible to make or place others while one’s assets is still locked up.

StaFi offers the best solution to leverage on these staked assets through its solution, one can receive rtokens in proportion of the amount of assets staked, this gives him a free hand to retrieve his staked assets anytime he wishes as well as the right to keep enjoying staking rewards. On top of that, the rtokens are practically and freely tradable on exchanges,this way, users can rest their worries regarding assets unlocking periods.

CONCLUSION

StaFi is setting the bars so high for other Proof of Stake projects within the DeFi industry, it offers a lasting solution for users to reap benefits in their staked assets through its protocol.

This staking protocol proffers a unique token proportional to the amount of assets staked by a user, and this token gives the staker the right to enjoy staking rewards while assets are still locked up, redeem his staked assets when he desires and make income by trading the rtoken on diverse supported exchanges.

To know more about Stafi Protocol, kindly visit https://www.stafi.io

Article Written By: Adasofunjo Michael Oluseye

Telegram Username: @Seyeski

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store