StaFi: A Staking Platform Like No Other
Asset staking has become the norm on the blockchain. And this is thanks to DeFi platforms that reward stakers for keeping their assets locked in liquidity pools.
Despite being hyped as challengers to traditional financial institutions, these derivatives aren’t as flexible as envisaged. For platforms that rode on the back of their disruptive tendencies, it’s a shocker to see stakers struggle in accessing their staked assets.
Another issue plaguing DeFi platforms is the dependence on staking for network security. Though it’s not a major problem, it requires more users to stake assets. This explains the ungodly rush for high TVLs.
Enter StaFi Protocol
DeFi should be a gamechanger not join the redundant train, like the institutions they were meant to challenge. StaFi protocol came into being to do just one thing — give DeFi a new lease of life. Here’s how:
Just like Thompson’s model of the atom, StaFi protocol could be compared to a pudding studded with assets from different networks. So the protocol isn’t here to replace DeFi derivatives but to improve on their shortcomings. One of such is the security of these platforms which is often their Achilles.
StaFi protocol intends to transform this area of weakness into one of strength through a boost in network staking.
Since most stakers find the status quo in unbonding time for several DeFi protocols to be unbearable, StaFi’s attempt at shortening this timeline through the use of rTokens should retain the interest of stakers, preserving the highly volatile TVLs. This should make for the better overall security of the network in the long run.
As reiterated earlier, the liability of many DeFi platforms isn’t what it’s made out to be. They might be disruptive, but it certainly hasn’t trickled to all areas of these derivatives. Issues of trapped liquidity are still very much alive.
Centralized outfits can get away with such a malady, but not DeFi. So it’s great to see the StaFi protocol attempt to unlock this liquidity through the issuance of synthetic derivatives for assets staked using its smart contract.
It’s erroneous to think StaFi is geared at replacing most DeFi platforms. Frankly, the protocol is more of a plug-in that unleashes the hidden potential of the DeFi world than anything else.
Compatible with multiple chains
If StaFi will be the hero the DeFi world never knew they needed, it has to be more flexible. This explains the compatibility of StaFi protocol with multiple chains — ETH, Cosmos, Polkadot, and others — so different DeFi protocols are covered.
The support for different POS blockchains is possible through a robust staking contract and the minting of synthetic derivatives. As people stake assets through these staking contracts, knowledge of who kept what and when can be difficult to ascertain. Fortunately, StaFi protocol has StaFi Special Validators (SSV) that keep track of transactions done.
The highpoint of the StaFi protocol is the synthetic derivatives minted when anyone uses its staking contract to stake the actual asset. These rTokens can be used to fuel the DeFi cravings — lend, borrow, and more — as long as collaborations between both entities are in place.
Anyone holding a rToken can get back his actual stake by returning the synthetic derivative to the pool. And if you’d rather trade it for a stable coin, rTokens can be exchanged on decentralized platforms.
If the cryptosphere was likened to a computer, StaFi protocol would be its motherboard, supporting the proper functioning of adjoining parts. The protocol can unlock the liquidity in DeFi while fostering the growth of the entire crypto space.
You can check out StaFi official website for more information: https://m.stafi.io/