Adaora Anders
3 min readMay 17, 2021


StaFi; Everything You Need To Know About rATOM Solution

To deliver on its mandate of unlocking liquidity in POS chains, Staking Finance (StaFi) has created multiple products for the job. One of such products is the rATOM solution.

What Is The rATOM Solution?

Cosmos is one of the POS chains serviced by StaFi Finance. The chain is fuelled by ATOM, its native token.

To solve the liquidity crunch bedevilling the Cosmos chain, StaFi created the rATOM solution. rATOM is a synthetic derivative that’s given to users that stake their ATOM through the StaFi staking contract for the Cosmos chain, the rATOM solution.

Why Is rATOM Solution A Worthwhile Option?

Usually, POS chains like Cosmos require stakes to be locked and the unlocking period can last as much as 21 days. During this time, users can do nothing with the ATOM, so whatever opportunities that might arise, it’s off their reach.

Besides the issue of being handicapped, staking rewards for the ATOM tends to differ. You have to be a pro at the Tendermint consensus to make out a tangible benefit for locking your assets for such a period.

These issues bring the rATOM solution in contention, making it quite beneficial to opt for the StaFi rATOM product.

The rATOM solution eliminates the 21-day timeline. You don’t have to wait that long to access the liquidity locked in the original contract. Once you stake your ATOM through the StaFi contract, you’d get rATOM tokens, which can be traded on relevant DEX working with the StaFi protocol.

There’s also the opportunity to get the best rewards possible for your staking as the StaFi protocol delegates your stakes to the most suitable validators. That removes the burden of maximizing rewards from your hands to those of pros in the business.

How Is rATOM valued?

Though the rATOM is a synthetic derivative of ATOM, its valuation is different from that of the latter. Frankly, the value of rATOM issued is dependent on several attributes, including the Number of ATOMs locked, the number of slashes, total rATOMs in circulation and others.

rATOM might be a sort of replica of the ATOM, but its valuation is more complex — it looks at the bigger picture of the StaFi staking contract.

rATOM Solution Reduces Slash Deficits

Typically, when staking on POS Chains like Cosmos, the rate of Slash is often a big deal. It can affect the staking reward accrued significantly.

Through StaFi’s rATOM solution, damage due to Slash is much reduced. The Staking Finance protocol is much more meticulous in picking validators. The stringent measures do pay off as rewards are maximised and slash kept to the minimum.

Does rATOM Solution Cost Much?

While the rATOM solution isn’t free, commission and service charge are often deducted from the reward accrued. The commission can be as much as 20% of the reward, which is often minute when compared to the massive gains delivered by the StaFi protocol. This commission is shared by the protocol and the original validators. So it’s not all on the StaFi.

Unlike the commission, the service charge isn’t fixed. It takes into consideration the redemption rate, exchange rate and the number of rATOMs requested. Regardless, it shouldn’t be significant enough to cause an uproar.

Final Thoughts

StaFi protocol’s rATOM solution promises to bring succour to ATOM stakers. Through this well-thought-out solution, ATOM stakers can increase their reward while having a secure platform handle everything during that period. This lets the individual focus on what matters while giving others something to smile about. It’s certainly a win-win from every perspective.

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