Adaora Anders
3 min readJun 25, 2021


Liquid Staking And Benefits: StaFi Protocol Leads The Pack

Decentralized finance (De-Fi) protocols have risen in their numbers, and rightly so. The reign of centralized finance hubs has ended; the dawn of decentralized finance is here.

While many armchair experts have stuck to their guns regarding the De-Fi boom as a bubble, they couldn’t be farther from the truth. The many benefits of De-Fi protocols are seemly irresistible.

In addition to the absence of the greedy middlemen — who have made centralized entities unattractive — staking is an enticing perk of De-Fi. Yet, they don’t scratch the surface of the opportunities that are possible.

Staking as it’s practiced on most protocols leaves the staker hungover from a liquidity crunch. All for what? An APR that’s often too little to leave an impact, especially if the original asset is small. The conventional staking leaves you handicapped — your assets are held down and crumbs handed to you.

Liquid Staking

We live in a world where challenges offer an opportunity to innovate, and that’s what happened with the limitation of staking. Entities like Staking Finance dug dig and came forward with a way to make staking less rigid and more profitable — and ‘Liquid Staking’ is the solution.

In liquid staking, staked assets aren’t just constrained to the old ways — just one earning route. Instead, these staked assets can be deployed so that the staker earns through other means as well. That means your original assets continue to earn woeful interests in addition to another income stream. In simple words, your asset’s earning becomes dynamic, not static.

Liquid staking is possible through the tokenization of staked assets. These tokenized assets — staking derivatives — can then be deployed as stakes on other De-Fi protocols. Previously, staking derivatives weren’t a thing — which made liquid staking not feasible — but that has since changed as more platforms support tokenized assets.

The interesting things about liquid staking are the multiple interest streams and the leeway to trade the staking derivatives. The luxury of choice everyone seeks, but only a few get, is right there.

Staking Finance (StaFi)

As previously hinted, liquid staking is a novelty. And a highly profitable one. Now, StaFi wasn’t the first to introduce the concept of liquid staking, but the DeFi protocol is doing two things:

  1. Creating an ecosystem for staking derivatives to thrive

2. Making these tokenized assets. StaFi is offering all the gains of liquid staking and then some. Of course, StaFi isn’t the only De-Fi protocol that’s currently offering liquid staking. That number will rise over the years as De-Fi continues to disrupt the financial sector.

Is StaFi Protocol Doing The Right Thing?

However, there are reasons StaFi is leading the pack. The De-Fi protocol is building a web of partnerships with projects across different chains. This is so crucial in the bigger picture.

Liquid staking is only as big as its acceptability. The more tokenized assets get accepted across projects, the more appealing the concept of liquid staking becomes. StaFi currently supports the bridging of tokenized assets across more than four blockchains.

StaFi isn’t just putting staking derivatives out there, it is creating an enabling environment for these tokenized assets to thrive, just like the original. Staking derivatives — called rTokens within the StaFi protocol — can be traded without the need to unstake the original asset.

Also, StaFi improves the crumbs earned as interest on staking the original asset. Though the improvement fails to change the pittance significantly, it does add something more.

Final Thoughts

Liquid staking will make staking more attractive due to the increased earning potential. Unsurprisingly, StaFi is leading the charge. Its commitment to a crypto space where staking derivatives get the acknowledgment they deserve is certainly admirable.

Follow StaFi official website for more information: