StaFi’s Liquid Staking: A Much-Needed Solution For DeFi Users

3 min readNov 26, 2021

The DeFi craze isn’t just about trustless transacting, there’s a much deeper reason for the disruption of the traditional finance landscape: the mouth-watering APYs on staking. Understandably, DeFi is a money-spinner for many — always will be, always has been. Yet, some deep-rooted issues have kept PoS chains and DeFi dapps from reaching the forecasted height.

DeFi users struggle with staking, the main staple of PoS chains. The long unstaking phase has created problems for many. Crypto investing and trading is time-sensitive, so the waiting game is not in the average investor’s interest. On some PoS chains, delegated assets can take months or even years to unstake — investors staking on Ethereum’s Beacon Chain can tell that tale better. Having one’s assets locked for long spells for meager rewards isn’t something the average investor is interested in.

The ‘trapped’ liquidity isn’t the only challenge associated with staking; users have to worry about not getting the maximum reward of the possibility of the stake being slashed — an approach taken by many PoS chains.

The Role Of Liquid Staking

Liquid staking allows investors to get around the problems associated with staking. Through the novel solution, investors can do as they please with their tokens, whether it’s selling, staking elsewhere or whatever they want. It is no longer the case of trapped liquidity, investors have full access to their stake.

With the risk linked to staking, risk management is crucial. Liquid staking makes it possible for investors to manage their risks accordingly. They can spread their funds across different projects, increasing the likelihood of a decent return on investment compared to staying put in one project.

StaFi’s Liquid Staking Solution As A Gamechanger

As enticing as liquid staking might be, investors have to be wary of the platform offering the solution. The DeFi terrain is as dangerous as it is disruptive, and in liquid staking, you are handling the project your assets to stake on-chain, so you can get the synthetic derivatives in exchange.

It gets tricky since the dApp can pull a wool over your eyes. This is where renowned DeFi protocols like StaFi stand out. With the Substrate-based project rolling out liquid staking solutions for different chains, there’s no doubt about the reputation of the platform. StaFi has cemented its place in the liquid staking space, creating a niche where no one thought possible. The DeFi protocol currently provides liquid staking solutions to multiple PoS chains with zero issues recorded by investors.

StaFi’s reputation isn’t only tied to the safety of its liquid staking solution, but the thoughtfulness and efficiency of its panacea. StaFi protocol delivers liquid staking that’s unlike what you’d get anywhere else. The increased utility for rTokens, easy to sell rTokens, and the continuous development of its ecosystem have seen StaFi upping the stakes in the liquid staking space.

The growing number of collaborations with other projects is another pointer of how revolutionary StaFi’s liquid staking solution has been. With more partnerships, the De-Fi protocol increases the potency of its liquid staking solution. There are more platforms that users can put the rTokens to work. Interestingly, StaFi seeks more ways to engage the synthetic staking derivatives, improving the reward accrued for investors.

Conclusion

StaFi’s liquid staking solution provides DeFi users with a way out of a possible quagmire. The many pitfalls of staking are rectified through liquid staking. And no one does it like StaFi. DeFi users are better served using the protocol to navigate the staking space while increasing their ROI in the process.