StaFiHub And The Future Of Staking Derivatives

Adaora Anders
4 min readMar 26, 2022

StaFi Protocol is rolling out StaFiHub, a staking derivatives hub for the entirety of the Cosmos Ecosystem. This latest product from the DeFi protocol promises a lot for projects on the Cosmos chain and beyond.

In this piece, we intend to delve into these promises, analyzing the viability of the claims made.

What Is StaFiHub?

StaFi hopes to expand its dragnet beyond providing liquidity to POS chains, and the StaFiHub is the gateway towards making that a reality. StaFiHub is a cross-chain staking derivatives platform built using the famous Cosmos SDK framework. The layer 1 platform relies on the inter-blockchain communication (IBC) protocol to support derivatives staking across different chains.

The Promises Of StaFiHub

Staking Finance has made certain promises with the soon-to-launch StaFiHub. Some of these claims will be quite beneficial to the Cosmos ecosystem. Here are some of the promises made:

  • A staking derivatives platform for developers

StaFiHub is being touted as the first staking derivatives platform built for developers. Currently, developers have to deal with a lot of overhead costs in creating staking derivatives, which negates the entire process. With StafiHub in the picture, these costs are reduced as developers can deploy their staking derivatives as rtokens.

  • Modules are all set

Creating staking derivatives is an intricate process that can take up a lot of time since modules have to be deployed. On StafiHub, these modules including the staking module, on-chain rate module, and others are readily available for deployment. Developers don’t have to go through the set-up process. That’s certainly time-saving.

  • True Liquid Staking Solution StaFiHub promises to provide staking derivatives deployed on the layer 1 chain with a true liquid staking solution. The platform, created specifically for staking derivatives, hopes to achieve this humongous claim thanks to the combination of the Tendermint consensus and the IBC.
  • A Useful rToken

It’s one thing to create staking derivatives, but it’s another to have these derivatives provide value. Staking Finance protocol is perhaps the only liquid staking solution provider that’s keen on adding value to its staking derivatives. And StaFi is bringing that trait to StafiHub.

On the layer 1 chain, the utility of the rtoken will continuously undergo improvement, so holders have a versatile staking derivative — a rare fit in these parts. StaFiHub hopes to actualize this promise by relishing the Inter Blockchain Communication to stay connected with projects in the Cosmos Ecosystem. This explains the diverse array of use cases available to the rtoken.

  • Easy Deployment

One of the promises of StaFiHub is the ease of deployment of smart contracts. Recall that smart contracts are the lifeblood of staking derivatives. If they’re not seamless to deploy, then it poses a threat to the efficiency of the hub. Fortunately, the StafiHub promises easy deployment of smart contracts, so project developers don’t have to do a lot of modifications when creating theirs.

  • Access to lots of other Perks

By opting for StaFiHub's staking derivatives service, developers gain access to other perks attached to the StaFi chain. There’s access to the rDEX where staking derivatives can be traded for FIS, StaFi’s native token.

StaFiHub’s claims are certainly not bogus. These promises are realistic as long as the derivatives chain takes off without harmful bugs. Ready-to-go modules aren’t difficult to put together. It might take a while, but that’s probably why the StaFiHub is yet to launch since the proposal got the needed push.

Combining the Tendermint consensus with the IBC protocol is expected to nurture a liquid staking solution for staking derivatives on the Cosmos Ecosystem. This StaFiHub promise is within the capacity of the derivative chain based on components of the platform.

Perhaps where the promise of the StaFiHub comes into disrepute is in the usefulness of the rToken. It’s easy to promise a staking derivative will be useful by suggesting massive use cases. However, staking derivatives derive their value from the underlying token. Collaborations are needed to see the rToken being put to use in different ways. This is where things get interesting: is StaFiHub promising lots of collaborations in the pipeline? Perhaps the derivative chain is relying on whatever partnerships StaFi gets, and that’s not necessarily a bad move since the platform is powered by StaFi.

A Future For Staking Derivatives

As long as liquid staking exists, staking derivatives will always have a future. StaFiHub aims to bring the best of liquid staking to the Cosmos Ecosystem. What was initially considered limited to POS chains will now be available to projects on the Cosmos Ecosystem. It’s such a big boost for the ecosystem and the derivative chain. The layer 1 chain is counting on a first-mover advantage to become the go-to choice for staking derivatives on Cosmos without putting a dent in the possibilities available to the rtoken.


Every claim of the derivative chain is feasible though a few loose ends abound. For a platform that’s still in development, we should take these promises with a pinch of salt. Until StaFiHub becomes operational, nothing is certain. Fingers crossed, the platform keeps its promises on launch.

You can learn more about StaFi Protocol by visiting the websites below:




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