Adaora Anders
4 min readDec 27, 2021


How rDEX Will Change Liquid Staking

The introduction of Proof of Stake (PoS) consensus has received mixed reactions in the crypto space. With the environmental issues linked to Proof of Work (PoW), the jury is anywhere but out on what consensus is right for the digital ledger.

One of the reasons why POS consensus has not only seen the light of day but has become a staple among blockchain networks is the reward model. While PoW blockchains reward some significant work input, PoS alternatives reward all those staking assets on the chain. This brings it much closer to the decentralization of the blockchain compared to PoW.

Regardless of the positives, PoS chains aren’t perfect. The staking model locks up liquidity within the chain, resulting in most stakers unable to access their funds. Most chains require stakes to remain staked for a minimum number of days worsened by an unstaking phase.

Liquid staking solutions rose to prominence to allow stakers access their liquidity without putting the chain under any strain. The use of synthetic derivatives made such solutions quite effective.

StaFi, A Liquid Staking Solution

StaFi, a DeFi protocol, is one of the foremost liquid staking solutions catering to PoS chains. The protocol consists of a staking contract that makes for easy staking of assets on these blockchains.

Once assets are staked through the StaFi contract, the staker gets synthetic derivatives (rToken) equivalent in value to the asset staked. These tokens can then be traded easily on relevant DEXs without having to stay put till the expiration of the unstaking period.

The StaFi protocol uses this approach to solve the illiquidity faced by stakers on POS chains. Currently, the StaFi liquid staking solution permeates more than 8 POS chains, including Ethereum, Solana, Binance Smart Chain, Cosmos and several others.

In Comes rDEX

Though rTokens can be traded on the main DEX of a PoS chain, that’s mostly a makeshift arrangement for what the StaFi team has in mind. It’s always a good idea to have all synthetic derivatives trading on one singular DEX, and that’s what is expected with the intending launch of rDEX.

On rDEX, you will be able to trade your synthetic derivatives without worrying about the availability of liquidity. That was one of the issues that haunted the listing of rTokens on regular DEXs — users had to deal with bouts of price impact problems caused by a liquidity crisis.

StaFi launched rSwap V1 recently, testing the waters with the gradual listing of rTokens; only rATOM was supported at first. At the moment, rSwap V1 uses the Exchange-Rate Discount framework to allow for the exchange of rTokens for the actual token. However, that will change with the launch of rDEX V2. The move to an AMM model will improve the DEX significantly.

How rDEX Will Change The Liquid Staking Game

The launch of rDEX will take liquid staking to a whole new level thanks to a reliance on pooled assets, making it easier to trade rTokens for the underlying asset. On rDEX, rToken trading will be done with fees paid in FIS. You will be able to swap any rToken in one place, reducing the time spent shuttling between DEXs.

rToken holders can sink their teeth in the fees accrued from trading on rSwap as long as they add to the pool. It’s one of the perks of the liquid staking solution that StaFi offers. Those that stake their assets on PoS chains through the StaFi contract can maximize their earnings by putting their rTokens to work.

rDEX will be the game changer for StaFi as no other liquid staking solution has achieved that feat. The introduction of the DEX will put these synthetic derivatives in the spotlight, prompting more people to pay attention to the many opportunities that come with liquid staking.

One of the reasons for the widespread partnership between StaFi and several other DeFi protocols is the need to provide more utilities for the growing number of rTokens. rSwap does help in that regard. With rDEX in the picture, you can expect more DeFi protocols to get attracted to the protocol like flies to honey seeking collaborations. There’s something about a working novelty that stimulates interest, and rDEX belongs in that category.

Having more utilities for rTokens creates a demand for these synthetic derivatives, encouraging more people to seek them out. The result is that a rToken gets more valuable, offering the holder a liquid-rich asset that can easily be converted without any constraints.


As enticing as the future of liquid staking might be with StaFi and rSwap in it, the road ahead isn’t a jolly ride. There’s a lot that needs to happen. The launch of rDEX should be seen as a first step in a journey of several steps. Liquid staking is relatively new, so lots of tweaking will happen along the way. Interestingly, the StaFi team has a firm grip on development, so we can expect great things.


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