Stafi: Making Efficient Staking A Reality
Recent blockchain networks depend on a Proof of Stake (PoS) consensus to create an environment that’s not centralized.
While staking might have its advantages say security, stability, and democratized, there’s the backdrop of liquidity caused by tokens restricted in the system. Unfortunately, no platform can function without adequate liquidity, and this can affect the value of these tokens.
Most PoS consensus projects claim staked tokens can be easily unlocked, but users are often left in the dark on the short waiting period before these unlocked digital assets can be traded. When found out, confidence in such projects tend to nosedive as negative news spread quite fast.
Fortunately, Stafi Protocol has come with lasting solutions to these problems.
The Stafi Solution
To get around the liquidity crisis of the PoS consensus, the Stafi protocol was borne. Stafi protocol model involves getting a token in exchange for a staked token, and both digital assets have the same value.
On the PoS consensus, Stafi protocol can help reduce the likelihood of security threats. The protocol allows users to trade these rTokens, so there’s little or zero pressure to un-stake tokens, resulting in an overwhelmingly positive multiplier effect.
By opting for the deployment of the Stafi protocol, projects reliant on the PoS model don’t have to depend on an intermediary to carry out the supply of rtokens. The use of a contract handling the validation process curbs the risk linked to human factors.
Due to the decentralized nature of the Stafi protocol, the issuance of bonded tokens is handled by the average user, not a central body. By putting the a large number of regular holders of the tokens in charge, sharp changes in the price of these tokens and the risk that come with such are less likely.
Why StaFi?
Stafi Protocol relies on some inherent attributes of the Polkadot chain to succeed. While the protocol might be glued to the fabrics of the Polkadot chain, it’s still free from any centralized control.
Every action carried out by the protocol is based on the stipulations of its smart contract. This way, staked tokens aren’t a subject of ownership tussle. You can get your stake in a transparent manner devoid of any intermediary with a devious intention.
The decentralized tendencies of the Stafi protocol can be put to greater use through the provision of a bonded assets market. This has the potential to become in demand due to the growing number of platforms that are dependent on the PoS consensus. This market will engender the basic principles of decentralization while providing a financial opportunity for those involved.
The Stafi protocol has a security benefit that’s not often appreciated. Since stakes by independent addresses go through the discerning eyes of the Stafi protocol multiple times before the transfer of rtokens occurs, attacks or exploits — notorious threats suffered by projects reliant on the PoS model — can be avoided. This informs the need for the appreciation of the Stafi protocol.
Depending on the PoS consensus means most projects need to balance their staking sheet while practicing decentralization. The Stafi protocol solves this riddle using its smart contract that ensures a balance between stakes and rtokens given. The decentralized protocol achieves this through the provision of temporary addresses.
To avoid anyone laying claims to these ‘checking’ addresses while delivering on the desired result sought by users, the Stafi protocol uses innovative technology, ranging from computing to multi-signing in function.
Conclusion
The Stafi protocol can make all the difference between a PoS consensus that works and another struggling to keep up. Its fundamentals appear to have all the solutions that will bring perfection to the PoS family. And it’s not all theoretical. Stafi has been in use since 2019. No doubt, this decentralized model ensures stake models stand a chance in a virtual world that’s ever-changing.
You can follow StaFi’s website here: https://m.stafi.io/ to stay updated