Allocation of 5 Million FIS Tokens by StaFi Foundation to Facilitate the Liquidity of rDEX
Nothing attracts and retains users of a community than when the leaders always have their growth and happiness at heart.
StaFi is one of those projects that have continued to build and expand their ecosystem to better not just the lives and blockchain experience of their community but also the world at large.
In this article, we will be discussing a recent update by StaFi, centered on building a decentralized exchange that has unique features which undoubtedly improves the StaFi ecosystem and the experience of her users.
Staking Finance (StaFi)
StaFi is the first decentralized finance (DeFi) protocol that unlocks the liquidity of staked assets by issuing alternative tokens. By issuing these Asset-backed-tokens popularly called rTokens, the StaFi protocol solves the contradiction between token liquidity and Mainnet security.
rTokens are redeemable tokens for staked assets issued by the StaFi protocol, which can be traded, lent, or borrowed on a variety of platforms verified by StaFi. rTokens are issued on a 1:1 basis for native tokens staked in the relevant Staking Contract. As staking rewards for that native token accumulate, the exchange rate for the rToken will also rise, as will the number of native tokens that can be redeemed.
For example, for each XTZ staked on the Tezoz blockchain, you get an rXTZ. The same goes for ATOM on the Cosmos blockchain and DOT on the Polkadot blockchain.
rTokens issuance helps hedge against market volatility and ensure that users of the Proof-of-Stake mechanism no longer have to worry about waiting out the expiry date of their locked tokens no matter what turn the market takes.
rToken holders also reserve the right to continue participating in the governance of the original chain and reaping staking rewards even while they must have redeemed staked native assets.
No matter how perfect the StaFi protocol and their rTokens initiative seem, there is always room for improvement. There have been some complaints of lack of liquidity on decentralized exchanges that support rTokens and this leads to a substantially lower exchange ratio. The cross-chain standard involved in utilizing a supported DEX for a particular native token is also one of the issues faced by users adopting the rToken idea as the glitches and high transaction fees can be troubling. StaFi has however adopted means to correct these flaws through building a decentralized exchange called rDEX.
A Decentralized Exchange (DEX) is a peer-to-peer marketplace that facilitates large-scale crypto asset trading among many users. Instead of the traditional approach of acting as a financial intermediary between buyers and sellers, DEXes do it entirely through automated algorithms.
As of today, there are multiple DEXes built around the blockchain space that provide enough liquidity to maintain digital transactions between users of the crypto space.
StaFi has done enough to provide users with asset-backed-tokens and DEXes where they can be sold but liquidity, cross-chain difficulties, and high transaction fees are some of the major problems facing users of the rToken initiative hence the need for the creation of rDEX.
rDEX is a decentralized exchange built by StaFi that will allow rToken trading on the StaFi chain. It solves the problem of rToken liquidity and also allows users to conduct all transactional activities on the StaFi chain with no cross-chain barriers.
Features of rDEX
- Low slippage in small and medium-sized transactions is realized through the AMM CLP market maker model.
- FIS will be the primary trading asset for all rToken trading pairs to increase liquidity.
- Liquidity Providers will be compensated by the FIS token in the case of impermanent loss.
- Any single currency or a dual-currency model with different ratios can provide liquidity.
FIS Allocation to Boost Liquidity
As part of the process of enticing users and improving the StaFi ecosystem, the StaFi foundation has allocated 5 Million FIS from the Community Treasury as the total reward pool for the rDEX Liquidity Mining Program.
The rDEX Liquidity Mining Program is divided into three (3) phases:-
1. The Spring Program — Total reward pool of 2 million FIS
This phase will take place shortly after the official launch of rDEX, and not all supported rToken pairs will be available right away. By the end of the Spring Program, rDEX will support all rToken/FIS pairs, resulting in the deposition of sufficient liquidity for the phase.
2. The Summer Program — Total reward pool of 2 million FIS
Throughout this phase, rDEX will examine different deployment options on StaFiHub in order to support Native Token and FIS trading pairs such as ATOM/FIS, among others. This will ultimately allow trading between rToken and Native Token (FIS as the routing token). As a result, the majority of the mining incentive for the Summer Program will be Native Token/FIS, with rToken/FIS serving as a supplement.
3. Autumn Program — Total prize pool of 1 million FIS
After the first two phases must have been completed, rDEX will proceed to this last phase, where 1 million FIS will be set aside as a long-term support plan. rDEX will investigate various methods of facilitating community voting during this phase, as it will ascertain the allocation of mining incentives in each transaction to Pool incentives.
Spring Program Liquidity Mining Requirements
As stated earlier, the Spring Program, which is the first phase of the Liquidity Mining Program will launch shortly after the launch of rDEX. It will support only transactions between StaFi chain Native rToken and Native FIS token. In order to participate in this phase, there are three (3) requirements:-
A. Hold the native rToken of the StaFi Chain
For information on how to obtain StaFi Chain Native rTokens, see the rToken Minting Guide (rETH, rBNB, rFIS, rDOT, rKSM, rATOM, rSOL, rMATIC).
B. Hold the Native FIS token
Below are several ways to acquire native FIS:
o Native FIS is listed by Huobi Global Exchange, so you can get it there.
o Because Binance only supports ERC-20 FIS, you can obtain ERC-20 FIS from there and then convert to native FIS using StaFi’s rBridge; however, native FIS must be stored using the Polkadot JS mobile extension wallet. See also: How to use Polkadot JS to store native FIS.
C. Hold both the StaFi chain’s native rToken and the Native FIS token
Please keep in mind that a small amount of Native FIS is required as a Gas Fee for any of the three conditions. If you need a small amount of Native FIS, you can obtain it from StaFi’s FIS Fee Station. You can also check out the FIS Fee Station Guide.
The StaFi protocol was built for unique reasons and has since its inception sought to improve the ecosystem whenever necessary. One after the other, they are tackling the issues facing their community and the recent solution they are offering is rDEX.
rDEX is unique in every sense and is predicted to solve a major percentage of problems facing rToken users and with time, it is expected to be modified so that it reaches a wider audience.
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