StaFi Open Platform: A Staking Derivative Platform for the Future
Thanks to DeFi systems that compensate stakers for keeping their assets locked in liquidity pools, asset staking has become the standard on the blockchain. These derivatives, despite being marketed as rivals to conventional financial institutions, aren’t as flexible as they appear. It’s a shock to see users struggling to access their staked assets on platforms that were built around disruptive inclinations.
The reliance on staking for network security is another concern plaguing Defi projects. Though it isn’t a huge issue, it does necessitate more users staking assets. This explains the unnaturally high demand for high TVLs (Total Value Locked).
The liquidity crisis has always been a challenge for ordinary users When staking an asset, the assets are locked, and the un-binding period prolongs than expected. The Stafi Protocol addresses this by enabling liquid staking, which reduces the barrier to participation in staking, earning rewards, and being liquid at the same time, particularly for ordinary users.
StaFi has been introducing fresh rTokens regularly to address the network’s liquidity issue. It is vigorously working to improve existing rToken adoption through various means. For starters, individuals who utilize them are rewarded, in addition to the fact that they can use the rTokens to conduct transactions while the native tokens are staked. To encourage more users to use the features, educational activities are being held.
StaFi’s whole business model is around the creation of open staking derivative platforms. The goal of StaFi innovation from the start was to allow decentralized finance developers to use the protocol’s capabilities to design their own liquid shaking protocol. Before this, the StaFi core team has been developing rToken apps for a variety of platforms, including ETH, KSM, and others. As a result, more individuals, especially developers, see the importance of using StaFi and its advancements. Before we go any further, let’s have a look at the StaFi Open Platform.
StaFi Open Platform
As previously stated, the original goal of StaFi was to create an open, efficient staking derivative platform so that additional developers and projects could use it to develop their liquid staking solutions. The team believes it is past time for the StaFi protocol to be made available to the community, given the team’s continued development experience on rToken.
As the team works hard to introduce Open Platform to the community, they understand it’s not going to be seamless all the way. For instance, building rToken on the team’s own versus establishing an open Staking Derivative protocol isn’t the same level of effort, because community developers aren’t as familiar with the StaFi rToken as the core team. To provide a more comfortable and open development environment, the StaFi Core team is working on papers and software development kit (SDK) that are made available to the community.
Hence, to make the transition easier for developers who have never dealt with StaFi previously, there will be tools. The development tools and packages will be designed to let projects leverage this feature to address their staking-related liquidity issues. Instead of feeling stuck when they stake their native coins, holders of the rToken version will be able to transact as they stake.
The rToken is designed to protect against market volatility while still receiving rewards by using staking contracts to make assets liquid and transferable. rToken is a staking derivative with many functions and an alternative to PoS tokens. The synthetic derivatives created when anyone uses the StaFi protocol’s staking contract to stake the actual asset are the protocol’s high point. These rTokens can be used to satisfy DeFi desires — lending, borrowing, and more — as long as both entities collaborate. It primarily has three advantages:
● Users can benefit from both the staking and the liquidity of Staked assets.
● rToken has increased competition between Staking and DeFi, allowing users to benefit from Staking while also participating in DeFi projects to gain benefits such as lending with rToken as collateral.
● rToken issued a huge quantity of staked assets, which has flooded the DeFi sector with high-quality basic assets.
This development has helped to ease the shortage of asset value and categories for DeFi to some extent. According to data, assets locked in DeFi are worth less than Eight billion dollars, whereas the figure on the PoS chain is Nine billion dollars. There are numerous types of PoS assets worth roughly 4.5 billion dollars that will be released if half of them can be released.
What is StaFi
StaFi is a cutting-edge decentralized ecosystem that addresses a critical issue in the crypto space: platform illiquidity. Proof of stake networks supports a method in which utility tokens are connected to the network to defend it and confirm transactions, which is nothing new. Staking is the term for this procedure.
When coin holders stake their coins, they generally remove them from circulation, reducing liquidity. Meaning stakers won’t be able to access the token until the staking period is up once it’s been taken out of circulation. The coin will be out of circulation for that period, lowering the network liquidity as a result.
To address this issue, which is common with Proof of Stake tokens, StaFi developed the StaFi rToken App, which works with a variety of tokens. These rTokens are linked to native tokens and can be used to conduct transactions, bringing liquidity to the system.
Conclusion
There’s little doubt that rToken’s collaboration will encourage more people to use the StaFi protocol. With the cooperation with Frontier and other key projects, the team is currently focused on ensuring that all work related to adoption is completed, whether it be marketing or development. The StaFi protocol will undoubtedly continue to increase Defi’s liquidity while also promoting the expansion of the broader crypto sector.
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