Adaora Anders
3 min readJul 23, 2021

StaFi Synthetic Derivatives: rETH Pool Hits A Milestone

It’s been only a few months since StaFi commenced the FIS reward sharing for those who participated in its ETH 2.0 staking through its rETH route. Following the lucrative nature of this incentive, the TVL of the rETH pool has exceeded $40m, which is more than 10 times the value locked from two months ago. That’s significant for a protocol looking to be the go-to choice for liquid staking.

The TVL Increase Explained

There are lots of reasons why the TVL of the rETH app continues to increase despite the lots of alternatives that abound for ETH 2.0 staking.

  • rETH Listing On Curve

The popularity of Curve Finance as an automated market maker on the Ethereum blockchain hasn’t gone unnoticed to the StaFi hierarchy. This has necessitated the rETH proposal submission at Curve Finance.

Following the approval of the rETH listing on Curve, the synthetic derivative has received increased visibility as getting a spot on Curve comes with immense benefits.

For those in the dark, rETH is one of StaFi’s staking derivatives specifically created for the novel ETH 2.0 staking. By staking your ETH tokens through the StaFi rToken app, you get rETH tokens at approximately the same valuation as your stake.

  • The Rewards

Higher TVLs are often linked to greater farming incentives, and the rETH liquidity farming on Curve Finance is no different. The combination of CRV and FIS token rewards is enough to change minds. With the APY hitting 455%, that’s ample reason to sway most people.

  • A Large TVL

Yes, a large total value locked often results in even more assets staked. Nothing draws a crowd like a crowd, and the herd reaction is quite significant in the crypto space. This explains why projects with big TVLs often record massive increases in TVL.

StaFi’s earlier announcement of 1649 ETH staked through its rETH contract has since seen the TVL climb from around 5 million dollars to more than 7 times that figure. It’s a testament to the growing confidence of investors in the StaFi protocol.

  • Liquidity Unlocking

The increased rETH TVL might not be farther than the liquidity unlocking potential of the StaFi protocol. By providing access to interest-bearing tokens — rTokens — StaFi makes ETH 2.0 staking more liquid friendly. And for most ETH holders, access to liquidity, whenever they desire, trumps everything else.

The Choice Of StaFi

Investors continue to flock to StaFi’s staking option for obvious reasons:

  • Access to interest-bearing tokens

On StaFi, your original asset is staked, but you gain access to synthetic derivatives, which can be traded easily if the need arises. rETH didn’t hit the milestone luckily. It’s proof of great demand for liquidity unlocking on PoS chains that rely completely on staking.

  • rTokens can be money-spinners

By opting for StaFi, you can earn passive income through the rTokens. From WraFi to Curve, rTokens can help your liquidity farming efforts. The 455% rETH APY on Curve has quite the appeal.

  • Growing coverage of PoS chains

StaFi rToken app staking capacity isn’t limited to the Ethereum chain. About 5 rTokens — rETH, rDOT, rATOM, rFIS, and rKSM — are currently covered in the StaFi liquid staking scheme. More POS chains are expected to be covered as StaFi spreads its liquid staking message.

Closing Remarks

StaFi might be the first with the liquidity unlocking initiative, but its rETH milestone sets the De-Fi protocol up for more ‘firsts’. Sure, the rETH milestone can’t be attributed to the solo effort of StaFi — Curve and Yearn Finance contributed immensely — but it’s an epitome of great things to come for the liquid staking StaFi protocol.

NOTE: StaFi rETH has been integrated into ImToken wallet and StakingDrop campaign begins. For more information, visit: and visit StaFi website for more information