rTokens Analytics Dashboard: Accessing rTokens Data Seamlessness

Proof-of-Stake (PoS) came to save the day when Proof-of-Work (PoW) was zapping the energy out of humans and resources. The staking method is a unique initiative that has been widely adopted by numerous crypto projects and is still considered a better alternative to PoW today.

In Proof of Stake (PoS), a person can mine or validate block transactions depending on the number of coins they own. This implies that the more coins a miner has, the greater their mining power.

The proof of stake idea was developed as an alternative to the proof of work (PoW) framework in order to address inherent difficulties plaguing the latter. Many projects have adopted this concept and improved it. One of such projects is StaFi.

Staking Finance (StaFi)

StaFi is a decentralized finance (DeFi) protocol that solves the problem between Mainnet security and token liquidity by unlocking the liquidity of staked assets. Tokens are staked through the staking contracts built within the StaFi protocol and then alternative tokens, popularly known as rTokens are issued to the staker. These alternative tokens can come in the form of rXTZ in the case of staking Tezoz tokens and are offered to stakers in order to hedge against market volatility. rTokens can be traded at any time while the staker earns staking rewards from the original chain at the same time.

StaFi is made up of three layers: the bottom, the contract, and the application layers. The bottom layer is primarily based on Substrate, a blockchain architecture designed by Parity that incorporates numerous development modules; the application layer involves the support of third-party StaFi-based or customized APIs in order to establish a decentralized bonded asset trading market for rTokens to circulate, transfer, and trade on StaFi’s System; while the contract layer, which is crucial for discussing the topic of this article is responsible for the creation of numerous staking contracts for various crypto assets, such as DOT, ATOM, XTZ, etc. Holders of these assets can stake via a staking contract and get ordinary staking rewards, but with rTokens, the reward is extended.

rTokens

rToken is a redeemable token for assets staked on StaFi protocol and is issued by the platform. These tokens can be traded, lent, or borrowed on various platforms. When a user stakes a native token through the appropriate Staking Contract, a specific number of rTokens will be produced based on the number of native tokens staked and the rToken’s exchange rate at the moment. As staking rewards for a particular native token increases, the rToken’s exchange rate will also increase, as will the number of native tokens that can be redeemed.

The most unique aspect of the rTokens initiative is that you get to earn staking rewards from the original chain and also from the alternative tokens.

Staking was introduced as a better alternative to the Proof of Work mining ideology. Generally, it is indeed a better alternative but it is not without its problems. Proof of Stake and Decentralized Finance were not actually created to be interoperable with one another. Staking, in reality, demands that users pledge their assets in order to earn incentives for protecting a particular network, and this prevents them from accessing the DeFi ecosystem. Furthermore, staking protocols impose waiting periods on users who wish to withdraw their investment, making it impossible to diversify their tokens/investment. This results in a loss of money for stakers since they are unable to invest their stakes in more profitable possibilities. As a result, the user’s ability to trade out of an asset position is limited, particularly in the event of a negative market movement, because the user cannot make sell orders while the asset is staked and this leaves this user at a disadvantage. For example, Tezoz has a redemption period of 21 days, StaFi has a period of 14 days, and Polkadot has a duration of 28 days.

The liquid staking protocol has emerged as a solution to this problem. It involves tokenizing stakes in some way and earning the extra incentive. Tokenized tokens allow stakers to gain access to DeFi and manage their assets in a more flexible and non-custodial way. This is exactly what StaFi does with its establishment of rTokens staking derivatives.

With StaFi’s protocol, a user does not need to worry about unlocking periods. The staker will get an equivalent amount of rToken when he stakes, as well as the freedom and discretion to redeem the original staked assets at any moment.

rTokens Services to Stakers Utilizing the StaFi protocol

• There is no longer any need to wait for the lengthy redemption time that existed initially on PoS networks. Users can quickly trade rTokens at the ratio of 1:1 for rToken and the original staked Token
• The StaFi’s Staking Contract Pool will automatically collect Original Validators with the highest rate of return on the chain for Staking, allowing users to maximize their staking returns.
• With the introduction of rFis, those interested in $FIS staking can stake with just one click. There is no longer a need to worry about the Nomination Proof of Stake mechanism of StaFi or any other hindrance to staking on the network.

rTokens Services to Stakers Utilizing the PoS Mechanism

· The urge for users to invest in a project is increased significantly with rToken involved. This will boost the staking ratio of PoS projects while also improving the security of the original chains.

· The original chain’s security will not be jeopardized, regardless of how many assets are locked in the StaFi Staking Contract, because those assets are dispersed among a significant number of Original Validators.

· StaFi does not validate the original chain and therefore will not infringe on the validators on the original chain. This also empowers them to collaborate with existing ecosystems and validators.

Conclusion

Two major ways to obtain rTokens include:

i. After using StaFi’s Staking Contract to stake native tokens, rTokens will be produced and transferred to your specified wallet address based on the quantity of native tokens you stake and the rToken exchange rate.

ii. Purchase rToken on decentralized and centralized exchanges that listed rTokens.

StaFi and their rTokens initiative remain one of the best ideas ever produced on the crypto ecosystem. It has proven to be very helpful as it alleviates the problem many stakers once faced on the PoS mechanism.

Stay connected with the StaFi project using the Links below:

rToken Dashboard || Official Website |*| Telegram || Medium |*| Twitter