StaFihub: StaFi Parallel Chain Dedicated for Cosmos Ecosystem rTokens

StaFi, the first DeFi protocol to offer a solution to staking issues, has continued to unlock the liquidity of staked assets. Users can stake PoS tokens via StaFi and receive rTokens in exchange, which can be traded while still earning staking rewards. StaFi issues rToken as a synthetic staking derivative when users stake PoS tokens via the StaFi rToken App. rTokens are tied to the PoS tokens staked by users and the associated staking rewards

While an open Staking Derivatives architecture remains StaFi Core’s ultimate goal, the StaFi Core made significant progress in rToken liquidity during the fourth quarter of 2021. They launched rSwap, updated the rPool function to encourage more rToken trading pairs, released MintType, which improves the UI/UX of the rToken-mint, and so on. The team’s entire effort has been focused on developing a more sophisticated rToken ecosystem.

In December, StaFi disclosed the release of StaFiHub proposal for Cosmos SDK, a framework that is not only compatible with rToken, but also improves its development, access, and adoption, and as well listed rTokens on rSwap to build multi-scenario solutions for rToken liquidity. This is due to the Cosmos ECO’s rapid growth, including the emergence of multiple vertical chains based on the Cosmos SDK. The StaFi team proposed building a StaFiHub based on the Cosmos SDK to serve the Cosmos ECO Staking Derivatives. StaFiHub will be an important part of the StaFi rToken ecosystem’s expansion to the Cosmos Eco.

Cosmos ECO is currently thriving, with over forty vertical public chains built on Cosmos SDK. Six ecological chains are among the Top 100 circulation market value. Terra, Crypto.com, Cosmos, THORchain, Kadena, and Osmosis are among the names on the list. To expand the rToken ecosystem, the StaFi team wants to extend the StaFi rToken ecosystem to the Cosmos Eco Chains. However, minting rToken for these projects is difficult if the current StaFi Chain is used. Also, the cross-chain Mint-Trade-Redeem interface is not very user-friendly. As a result, the idea for StaFiHub emerged. But what exactly is StaFiHub, and why is it important?

What is StaFiHub?

StaFiHub is a StaFi parallel chain dedicated to Cosmos ecosystem rTokens and based on the Cosmos SDK to serve for Cosmos ecosystem Staking Derivatives. StaFi has completed the development of the StaFiHub chain in 2021Q4, and the deployment of the rToken architecture on StaFiHub is also underway.

This will be the StaFi Chain’s application layer, supporting liquid staking solution DApps from third-party developers. The StaFi protocol is not currently designed to support the hosting of third-party liquid staking solution DApps, but the introduction of StaFiHub has changed that. With a parallel StaFi chain, the StaFi team aims to provide the solution for the expanding number of staking derivatives on the Cosmos ecosystem. This latest StaFi addition is expected to be built on the Cosmos SDK.

Key Features

Considering the simplicity and user-friendly nature of the StaFiHub initiative, It possesses the following features:

  • It will be a Cosmos Eco Staking Derivatives-serving application chain.
  • The Cosmos SDK, similar to TerraChain, Osmosis Chain, and Sifchain, will be used for the chain function. On the other hand, the validator system will not be available when the mainnet launches and is nominated by the StaFi Foundation.
  • StaFiHub enables the IBC cross-chain protocol. The Cosmos ecosystem’s token assets can be cross-chained to StaFiHub via the IBC protocol, and the StaFiHub’s rToken assets can all circulate in the Cosmos ecosystem via the IBC protocol.
  • Using the Keplr wallet and the corresponding PoS Token, Cosmos ECO tokens can directly mint StaFiHub-based staking derivatives.
  • The StaFi team will create a cross-chain bridge between the StaFi Chain and the StaFiHub to exchange rTokens between the two chains.
  • The community will access general liquid staking solutions for Cosmos SDK projects to encourage the Cosmos ECO community to develop staking derivatives.

Why StaFiHub?

The Cosmos ecosystem has a wide range of staking derivatives that StaFi protocol can’t support currently and other derivatives. StaFiHub is expected to broaden the DeFi protocol’s horizons, allowing it to support more staking derivatives than are currently available.

StaFi is looking to port its rToken application to the Cosmos SDK framework due to the popularity of the Cosmos Eco Chain, and StaFiHub is the tool for doing so.

What Should You Expect from StaFiHub?

StaFiHub came from the StaFi team for a reason:

● It’s expected to be the next step in the StaFi roadmap. It will widen the rToken universe, giving users more possibilities. The most important feature of StaFiHub is that it will revolve around the Cosmos SDK; given the open-source framework’s success, it’s no surprise that StaFiHub will be built on that software development kit.

● Unlike the StaFi chain, POA validators for the StaFiHub network must go through a selection process organized by the StaFi Foundation. This ensures that the network’s security and efficiency are up to par.

● StaFiHub will not function in isolation. The cross-chain bridge keeps it connected to the parent chain. As a result, assets from the StaFi native chain, such as FIS, can be easily transferred to the StaFiHub.

● Thinking about a way to access a variety of rToken apps, StaFiHub is the place to go. The hub will serve as a home for applications. All staking derivatives on the Cosmos ecosystem will be affected.

● The rise of StaFiHub will result in greater adoption of liquid staking solutions, particularly among chains based on the Cosmos SDK framework. There are currently over 40 chains built on that architecture, all of which will be supported by StaFiHub.

Some Notable Benefits of StaFiHub

The ecological expansion of StaFi rToken is aided by StaFiHub. It can assist StaFi rToken in expanding the Cosmos ecosystem to be more environmentally friendly and cost-effective. The team can use StaFi Hub to:

  • Serve all Cosmos ecosystems (which include over 40 Cosmos SDK Projects) quickly and efficiently, and provide them with Liquid Staking Solution.
  • Encourage adoption by providing a more user-friendly Cosmos ecological experience.
  • Add to the rToken ecosystem at StaFi.

Conclusion

With the myriad of other blockchains, why will StaFi build the StaFiHub around Cosmos SDK development kits? It’s simple; many blockchain applications rely on the Cosmos SDK. It’s popular among developers working on decentralized applications for various blockchains. Considering the success of the software Cosmos SDK development kit, the choice to build StaFiHub on it is obvious. Many popular DApps are available on chains such as Cosmos, Kadena, Thorchain, and others.

StaFi has always been committed to supporting all PoS chains, but it cannot support all of them with rToken apps that rely on the StaFi chain. Inherent challenges hampered the StaFi chain’s suitability for the proliferation of more staking derivatives, particularly for chains that rely on the Cosmos ECO. Cosmos SDK is a good choice for both convenience and efficiency. StaFiHub will assist the StaFi protocol in reaching previously untapped areas. Because it relied on Cosmos SDK, users can expect more from this parallel StaFi chain.

Stay connected with the StaFi project using the Links below:

Official Website |*| Telegram || Medium |*| Twitter

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I’m a TECH Lover, Blockchain Enthusiast, Strategic Digital Marketer, Content Creator, Crypto Trader & Data Analyst…

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