The Minted Type Function on rToken App Explained
The rToken is another word for Reward Token. It is a convertible token for the staked assets issued by the StaFi protocol, which users can trade, lend out, or borrow on a variety of platforms. If a user stakes a native token in a Staking Contract, the idea is to issue a particular amount of rTokens based on the amount of native tokens staked in the Staking Contract and the current rToken exchange rate. As staking incentives for that native token accumulate, so will the amount of native tokens that can be redeemed.
As the PoS network grows, StaFi has dedicated itself to assisting validators in unlocking the liquidity of staking assets while guaranteeing the main chain’s security through the rToken solution. As a result, a large amount of money in staked assets can circulate with rTokens without the need to unstake. It overcomes the staking liquidity problem and increases the interest of crypto enthusiasts and developers in the PoS consensus.
Today, this approach has been used on several public chains, including Polkadot, ETH 2.0, Cosmos, Solana, and others, and has supplied liquidity solutions in form of rETH, rDOT, rFIS, rATOM, rSOL, rKSM, etc for users’ benefit and participation.
StaFi recently added the new rToken Mint type function as part of the rToken App solution development, which allows stakers to specify the type of rToken they want to stake (Native, ERC20, BEP20, SPL). While simultaneously exploring the rToken integrations continuously. This will be further illustrated with the rSOL App staking process later on in this article. The Mint Type Function is only one of the rToken App’s existing functionalities that have recently been improved.
StaFi Protocol
StaFi happens to be the first DeFi system to allow staked assets to be liquidated. StaFi allows users to stake PoS tokens and obtain rTokens in exchange, which may be traded while still receiving staking rewards. On the StaFi Chain, FIS is the native token. Staking, paying transaction fees on the StaFi chain, minting, and redeeming rTokens are all requirements for FIS.
The need for rToken solutions was stimulated by the liquidity problem with staked assets. Most Proof-of-Stake initiatives require a lengthy unbonding period during which the user has no access to his asset and is not able to receive staking incentives. Providing an avenue for users to bypass the unbonding period and make use of their staked assets however they want while receiving staking rewards is what rToken aims to address.
To corroborate the solution of rToken App, a new feature (Mint Type Function) has been added to improve the user experience: stakers can now mint listed types of rToken while staking.
It requires some simple steps:
- When staking, choose a token type: Native/#ERC20/ #BEP20/#SPL.
- Get a rToken and use it to interact with specific chains right away.
For better understanding, follow the simple steps of Staking SOL on the rSOL App (the rSOL App is a variety of the rToken App recently launched by StaFi protocol) using the New Mint Type Function:
1) Launch the rSOL App. On the “Staker” screen, enter the desired amount of SOL and click “Stake.”
2) On the “Choose mint type” tab, the minted rSOL types are listed; the rSOL App supports both Native and SPL formats. On the StaFi ecosystem, native rSOL will be used, while SPL rSOL will be used for DeFi on Solana.
3) On the “Staking Overview” tab, click “Continue” to see the transactions and handling costs.
4) Follow the prompts to sign, and the “Liquidation Process” on the right will show you how to stake and swap.
5) Examine the delegation information.
On the “Status” page, look at the delegation data: This page shows the amount of staked SOL and minted rSOL, as well as the rSOL/SOL exchange rate.
To continue staking SOL, click “Stake.”
There are several commissions and activities attached to the New Mint Type Function. these include:
● Relay Fee: The relayers charge this fee to cover the cost of the cross-chain contract interaction service fee between the StaFi and Solana chains.
● Bridge Fee: payable for the changing of Native rSOL into SPL format between the StaFi and Solana chains.
● Sending funds: send the SOL that will be staked into the Solana chain’s StaFi rSOL contract account.
● Given the open and transparent nature of the information on the Solana chain, anyone might access transaction information and submit it to the StaFi chain to mint rSOL. As a result, before transferring transaction data to the StaFi chain, it is important to establish the transaction’s ownership to assure its security.
● Staking & Swap: consists of two basic operations: staking rSOL and getting rSOL, as well as swapping rSOL into SPL format.
To show the operating method of the new mint type, this guide uses acquiring SPL rSOL as an example.
When using the BEP20 format, enter the Binance account that will be used to receive rSOL in the “Received address” box and then click “Stake.”
Please enter the Solana account to receive rSOL in the “Received address” column when users pick SPL format or click “connected addr” to automatically insert the Solana account in connection.
Conclusion
The StaFi rToken solution keeps getting better with every development and has continued to pave the way for a trouble-free staking process and unlocking liquidity. Users will be able to maximize staking rewards while also increasing participation in a variety of staking pools without much restriction, thanks to the recent addition of the new mint type function.
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