StaFiHub: Tokenomics being prepared for Release before final Launch

Helen Imah
5 min readApr 16, 2022

In December, StaFi released a proposal to build StaFiHub on the fast-rising Cosmos ecosystem to efficiently serve staking derivatives of the ecosystem.

Brief Introduction to StaFi

Staking Finance (StaFi) is the first decentralized finance (DeFi) protocol that solves the problems facing Mainnet security and token liquidity by unlocking the liquidity of staked assets.

StaFi solves this problem by providing alternative tokens for staked tokens on several proof-of-stake networks. These alternative tokens are popularly known as rTokens and are offered on a 1:1 basis of tokens staked on the original chain. In addition, rTokens can be traded on specified markets by StaFi while the user still enjoys rewards from staked assets on the original chain.

The StaFi protocol encompasses three layers, and they all serve their purpose in developing the StaFi network. They include; bottom, contract and application layers.

The application layer that enables the circulation, transfer, and trading of rTokens on the StaFi protocol using third-party StaFi-based APIs or customized APIs is responsible for creating StaFiHub.

But then, what does StaFiHub entail?

StaFiHub is a StaFi parallel chain dedicated to Cosmos ecosystem rTokens and built on the Cosmos SDK to support Cosmos ecosystem’s Staking Derivatives.

Multiple vertical chains based on Cosmos SDK have continued to emerge in the thriving Cosmos ecosystem. Over 40 vertical public chains have been built on Cosmos SDK, and StaFi is looking to jump on this ship as it will help expand the rToken ecosystem.

StaFiHub will help rToken users easily obtain and trade Cosmos ecosystem rTokens such as rATOM and rLUNA, which has always been difficult.

Under the current rToken protocol, minting, trading, and redeeming rTokens on the Cosmos ecosystem is complicated. For example, the Mint-Trade-Redeem process for rATOM includes:

i. Mint: Before staking, users must first hold Native FIS, and afterward, they can mint rATOM on the StaFi chain.

ii. Trade: Before rTokens can be used for liquidity mining or transactions on Sifchain, rATOM must cross-chain to Ethereum for ERC-20 rATOM, which must then cross-chain to Sifchain through the Ethereum>Sifchain Bridge.

iii. Redeem: rATOM on Sifichain cannot be redeemed directly. Before redemption, users must cross-chain from Sifchain to Ethereum and again from Ethereum to StaFi chain.

It is clear that the above process is complex and expensive, and it limits the adoption of rTokens on the Cosmos ecosystem to a large extent. This is why StaFi is introducing StaFiHub, a new brand of Staking Derivative solutions that will benefit many Cosmos Ecosystem chains and their users. To promote the Cosmos ECO rToken and the openness of its general technical architecture, StaFiHub offers a unique technical architecture that is highly beneficial to both Cosmos users and developers.

The Key Features of StaFiHub

  • The chain function will be based on the Cosmos SDK, which will be similar to TerraChain, Osmosis Chain, and Sifchain. However, the validator system will not be operational when the mainnet is launched and will be nominated by the StaFi Foundation.
  • It will be an application chain serving the Cosmos Eco Staking Derivatives.
  • The Cosmos ecosystem’s token assets can be cross-chained to StaFiHub through the IBC protocol. The StaFiHub’s rToken assets can also circulate in the Cosmos ecosystem through 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 facilitate the exchange of rTokens between the two chains.
  • To encourage the Cosmos ECO community to develop staking derivatives, General Liquid Staking Solutions for Cosmos SDK Projects will be made available to the community.

Key Benefits of StaFiHub

● Serve all Cosmos ecosystems (over 40 Cosmos SDK Projects) quickly and more efficiently and provide them with Liquid Staking Solution.

● Increase adoption by providing a more user-friendly user experience for Cosmos ecological users.

● Increase the value of StaFi’s rToken ecosystem.

StaFi protocol is proud to announce that the 1st phase of StaFiHub Testnet is live. Under this version of testnet, the core developers of StaFi will test out several features as follows:

✔ Basic operations of the StaFiHub chain, like transfer, staking, validation, etc.

✔ Testing rToken App for staking modules, minting of rTokens, unbonding, exchange rate updates & rToken asset management.

✔ Airdrop modules, including airdrop of $FIS tokens for Cosmos and StaFi Ecosystems

✔ Fee station app, swap between Cosmos Eco tokens & $FIS tokens

✔ Front-end testing of UI/UX

rDEX, built for easy and seamless trading of rTokens on the StaFi chain, will be working closely with StaFiHub.

The StaFi team is reportedly going to deploy rDEX on StaFiHub. The current version of rDEX is facing limitations regarding liquidity, cross-chain transactions of Native PoS tokens and trading pairs.

The Cosmos SDK will allow for more collaboration with a particular PoS chain community, and the target Chain community will do the initial creation of liquidity. With this, establishing a rToken/Token trading pair will not pose any financial problems for StaFi Core, and the team can also freely carry out incentive activities. This ensures the sustainable growth of rToken on StaFiHub.

In conclusion, the StaFi team continues to work to ensure the project reaches the highest level of adoption. The launch of StaFiHub is expected to increase the adoption of rTokens, which is one of the core features of the StaFi project.

In addition to building a Hub for rToken users of the Cosmos ECO, the StaFi team will also build a Polkadot parachain for rToken users of the Polkadot ECO. The parallel chains of StaFi Chain will be StaFiHub and StaFiParachain, with assets flowing freely between them through a cross-chain bridge.

The StaFi team has assessed the building of StaFiHub and believes the mainnet will be released in the first quarter of 2022. The core team will develop the first rToken on StaFiHub after the mainnet is released, and the following vital bridges could be released in the Q2 of 2022:

  • Integrate the IBC module to interact with other IBC chains in the Cosmos Ecosystem
  • Create a link between the StaFi chain and StaFiHub

Stay connected with the StaFi project using the Links below:

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



Helen Imah

I’m a TECH Lover, Blockchain Enthusiast, Strategic Digital Marketer, Data Scientist, Crypto Investor & Trader…