How StaFiHub Fares Amongst Liquid Staking Solutions
With the growing popularity of PoS chains (even Dogecoin will have a Proof-Of-Stake consensus), liquid staking solutions have grown in usage. And more of these liquid staking vendors have entered the fray.
StaFi, a DeFi protocol, will be launching StaFiHub. This will be a liquid staking solution built to cover more ground than the DeFi protocol currently caters to.
Understanding StaFiHub
To understand how StaFiHub fares besides other liquid staking solutions, we need to comprehend the true potential of the vendor. StaFiHub is offering liquid staking on the Cosmos SDK framework. This has interesting benefits. For one, the sort of staking derivatives that can flourish on the hub is beyond the imagination of most users.
StaFi will be digging deep with the creation of the StaFiHub. The protocol intends to cater to more assets, offering liquid staking solutions to more than a handful of PoS chains.
How StaFiHub Fares Compared To The Competition
With StaFiHub, there will be a lot of opportunities for third-party projects. It won’t be constrained to just PoS chains alone. Staking derivatives can be used for a lot more than their current purpose — liquid staking on PoS chains — and that’s what StaFiHub will make happen.
Much of the competition in the liquid staking solution space isn’t focused on providing this opportunity to projects outside PoS chains. With StaFiHub doing the exact opposite — catering to other projects besides PoS chains — that’s a big plus for the liquid staking vendor. The Cosmos ecosystem is where most of these supported projects will have their root, which is quite significant considering the sheer size of the ecosystem.
Staking derivatives are only valuable if they can be easily traded with some utilities. The hype behind liquid staking is due to the access to liquidity and the extra side income that comes from such. If such a service isn’t delivering on any of these, then it loses its appeal. And we know what that means.
StaFiHub avoids these pitfalls through the numerous partnerships entered with DeFi protocols. This will create an avalanche of use cases for the growing number of rTokens. Also, rTokens can be traded on numerous DEXs as well as StaFi’s DEX, rSwap. At the moment, most rTokens have utilities such as liquidity mining, lending, and staking. This will only get better as StaFiHub is opened up to more projects other than blockchains.
Another interesting feature that gives StaFiHub an edge over the competition is the meticulous process surrounding picking POA validators. With stringent measures in place to ensure these validators meet the expectations, the StaFiHub network stands out from the pack.
StaFiHub is built on Cosmos SDK, which says a lot about the adaptability of the liquid staking solution. Compared to other liquid staking vendors that aren’t built on the software kit, you can expect StaFiHub to stand out. This is often quite influential in the staking derivatives offered. Lots of dapps are springing up from Cosmos SDK, and StaFiHub will be their one-stop-shop for liquid staking.
With the StaFi protocol already in the liquid staking business, it’s easy for StaFiHub to compete favourably. The DeFi protocol has successfully provided stakers on more than 8 POS chains access to their liquidity, so their reputation is solid in the crypto space.
StaFiHub won’t only be inheriting the reputation of StaFi protocol, it will stay connected to the StaFi chain thanks to an efficient cross-chain bridge. This should make it easy to navigate between the StaFi protocol and the StaFiHub.
Likely Challenges?
StaFiHub isn’t the only liquid staking solution out there, and it’s not perfect. The liquid staking service provider has survived a handful of challenges en route to meeting the needs of users. For instance, StaFiHub will have to contend with securing assets staked through its liquid staking solution. Considering the dicey nature of security and the greater burden of more staking derivatives, it might be a handful. Fortunately, StaFi is an established outfit in the DeFi space, so they understand the terrain well enough.
There will also be issues on what projects will be covered, but this can always be tackled by passing the buck to the community. That’s why decentralization is a thing, it gives the community something to do. Of course, third-party developers can always use StaFiHub for their liquid staking solutions, which is the aim of this move from the StaFi chain.
Conclusion
With the growing number of liquid staking solutions, the competition will only grow stiffer. Will StaFiHub survive more intense competition? I believe so. StaFi protocol has come a long way, and that counts for a lot in the disruptive DeFi space!
Visit StaFi’s official websites below to stay updated!
Website: www.stafi.io
Telegram Chat: https://t.me/stafi_protocol
Telegram Announcements: https://t.me/stafi_ann
Discord: https://discord.com/invite/jB77etn