Adaora Anders
3 min readJun 22, 2021


What rTokens Mean For Proof-Of-Stake Blockchain

Staking of digital assets has been hyped as the future merely due to the crumbs disbursed as staking reward. Considering the locked liquidity — and the many challenges of the PoS consensus — it’s just as insulting as the ridiculously low interests traditional financial institutions apply to monies saved by customers.
This is allowed to fester since comparisons are made to existing financial hub offerings. The risk involved is often painted in vivid colors, which only adds salts to a badly dressed wound. Warts apart, staking can be so much more. It’s sadly held down by the short-sightedness of the many. Fortunately, not anymore.

About Staking Derivatives

The derivability of staked assets is the key to redefining the rewards accrued from staking. Using the staking derivative window, staked assets can stay locked in the network without being at the mercy of a brutally dynamic market. It’s like living your best life through another being while meeting the numerous obligations required. That’s the magic of a staking derivative.
Previously, derivatives were constrained to a sort of receipt for deposits made on a protocol. Dai and Fulcrum’s derivatives — cDai and iBZRX — comes to mind. These were often issued on lending the original token on the platform.

The Input of StaFi

Following the run by the ‘lending’ derivatives, Staking Finance (StaFi) took it up a notch through the Introduction of the staking derivatives. StaFi called its shadow coins rTokens.
rTokens help to unlock the liquidity of staked assets, allowing these assets to operate fluidly while still being staked on the network.
For the rTokens to work their magic, the assets have to be staked through StaFi protocol. To understand how this happens, imagine the role of an extension cord.

The electrical extension cord connects to the main socket. You proceed to plug your charger into the extension cord rather than directly to the main socket… The benefit of such a setup is more flexibility in the operation of your charging mobile phone.
But StaFi protocol doesn’t only offer flexibility. Its rTokens open up to a whole new world of privileges without losing sight of the meager staking rewards.
This is in addition to the better staking rewards accrued due to StaFi’s efficient delegation system — no need to go through the hassle of pandering to the network’s antics. Of course, the locking period of the linked network is rendered nearly redundant as rTokens unleash the liquidity you need.

The Interplay of rTokens

With StaFi protocol acting as the anchor for asset holders to stake their cryptocurrencies to the specific network, its staking derivatives are disbursed to the stakers. With several proof-of-stake blockchains, rTokens are groomed to fill the vacuum, allowing stakers to experience the capabilities of staking derivatives. Currently, StaFi protocol has several rTokens like rDOT, rATOM, rETH, rFIS — and more are expected to be unveiled.
With great potential comes great responsibility, which is exactly what applies to the rTokens. These staking derivatives are built to operate like the original token — shuffling prices, tradable, lendable, stakeable, and more.
Thanks to StaFi protocol’s foresight, all of these attributes are closing in on being a reality. StaFi’s numerous partnerships — Curve, Oasis, Polkalokr, and many more — are geared towards opening the floodgates of the rToken’s potential.

A Plausible Partnership

The partnership with WrapFi orchestrated the rTokens being a part of the WRA fair launch program. Users can stake their rTokens and get WRA. Imagine a staking derivative earning tokens, that’s double staking rewards. And it’s all linked to the StaFi protocol.


Proof-of-stake consensus and its modifications are the future of an energy efficient crypto space. Staking derivatives are going to play a major part in that world. StaFi has become the powerhouse of these derivatives.
Follow StaFi official website
and Telegram community for more information.