Adaora Anders
3 min readFeb 26, 2021


Stafi Protocol: A Haven For DeFi And Derivatives

In the face of alarming number of exploits, looming regulation and current blockchain limitations, the DeFi craze rages on. Despite the upsurge in derivatives, there’s still not enough to match the demand for these applications.
More developers are expected to take up the mantle of building these derivatives that should drive the mass adoption of the blockchain. Unfortunately, most of this skilled personnel lack the toolset to actualize this.
Also, the abundance of DeFi applications doesn’t translate to more liquidity, especially if these are built on the Ethereum network. The computation-focused network is often overburdened with congestion challenges and the PoS consensus causes an increase in liquidity crisis for ERC tokens.

Any Hope For Developers?
Anyone looking to build derivatives might have a wide array of options to choose from, but the available support remains quite decisive. Platforms that provide developers with the necessary tools are few and far between. Fortunately, StaFi protocol is one of the few platforms that support the capacity of developers through the provision of the relevant tools. This is mind-blowing since Stafi is largely funded through grants made available by Web3. So imagine what happens when Stafi protocol becomes a full-fledged platform. Developers can expect even bigger support.
How Can DeFi Applications Survive The Liquidity Scourge?
Regardless of the turbulent windstorm created by Bitcoin movement, DeFi applications have continued to attract more investors.
Different supporting networks say Polkadot, Solaris, CKB, and BSC abound, but the Ethereum network has in recent times become the preferred destination for these applications, and each has an ERC token as its native fuel.
The popularity of the Ethereum network hasn’t helped the liquidity issues that continue to trouble these applications, especially as most use the Proof of Stake (PoS) consensus model.
StaFi protocol offers an easy fix to this problem through one of its layers — the staking contract layer. By making rTokens of the equivalent staked asset available for use on bridged DeFi applications, Stafi solves the liquidity crisis that continues to plague DeFi platforms, especially those on the Ethereum network.
With decentralized finance applications based on a community governance module, the assignment of rTokens has to be executed without any middlemen. And the Stafi protocol fits just fine into the mix with its decentralized framework that consists of Stafi validators. These validators allow for the confirmation and approval of the release of rtokens.

What’s the Use Case of these rTokens?

The Stafi protocol might trade stakes for rTokens, but can you use these digital items for anything? Of course, you can. On Stafi protocol, these rTokens have as much value as your staked assets. While trading of these tokens might not be possible on all platforms, Stafi is looking to not only offer derivatives that allow the exchange of these tokens, but it plans to extend the tradability of rTokens to even CEX platforms.

Transacting On Stafi Protocol

On Stafi protocol, the FIS token serves as the legal tender. No matter what needs to be done, you have to get the FIS to transact on Stafi. This provides an avenue for the protocol to operate efficiently while paying adequate attention to maintenance as it should.
Of course, holding the FIS token offers one a seat at the ‘bench’ — holders can take part in the governance of the protocol. This isn’t surprising as the Stafi protocol is decentralized.

Stafi protocol is a decentralized ecosystem that could one day become a hotbed of derivatives. The continuous use of the PoS consensus means there will always be DeFi platforms looking to solve their liquidity cries without having to unstake assets. Add the immense support for developers, and we can expect more derivatives to get involved.
You can follow up to date information on StaFi by following their website