Why Stafi Protocol Is Revolutionary
The dominance enjoyed by PoW has slowly waned and for good reasons: its computation-dependent mechanics is energy inefficient. Such a model isn’t sustainable for networks looking to get more people to operate nodes, which defeats the decentralized plans of these projects.
With PoW out of the picture for most projects, PoS is the next best option. Having holders stake their tokens towards ensuring the security and decentralization of the network sure beats the dependence on power-hungry gadgets as seen in PoW.
Despite the suddenly fancied nature of PoS, it’s not blemish-free. Staking requires locking up digital assets, which might be a problem for those looking to use theirs real soon. Previous attempts to solve this challenge creates more undesired issues, until Stafi protocol became a thing.
Stafi Protocol Structure
To understand how Stafi works, a little background history on the protocol will help.
Stafi Protocol has a multi-layer structure and each layer brings something different to the table.
The bottom layer forms the basis of the protocol — made possible by Substrate’s chain — and serves as the anchor for all the many capabilities of Stafi.
At the center of Stafi’s protocol is its contract layer. This is where the magic happens. It’s through this layer that users can add their tokens to the staking pool, with the transfer of rTokens also happening within this layer.
The Application layer offers an insight into Stafi’s thoughtfulness, especially as it concerns the exchange of rTokens. Through this layer, third-party applications are built for the transacting of rTokens.
How The Stafi Protocol Works
PoS-reliant blockchains now have the opportunity to unlock liquidity without jeopardizing the safety of their framework. Stafi Protocol makes this possible. But there’s a lot that goes on behind the scenes to make this happen.
Stafi works just like a browser plugin, allowing users to stake tokens on connected chains while getting rTokens as flexible receipts of deposit. The use of multi-signature addresses to cater to the transfer of assets to the staking contract with the collection of rTkens, eliminate the security risk that’s common with getting third-party platforms involved in this transfer.
The decentralized nature of Stafi Protocol is most conspicuous in its use of independent validators called the special Stafi validators. These entities are randomly picked to verify the signature request of a staker, so the value of rTokens disbursed matches the original asset staked through the Stafi Protocol. It’s a complicated process that ensures unauthorized persons aren’t allowed access to rTokens or staked assets.
The Role Of The FIS
Unlike the rTokens, the FIS is the native token of Stafi Protocol. It’s what drives the operation of the protocol. Special validators on Stafi Protocol have to stake FIS tokens to be shortlisted for such a sensitive task. This isn’t a surprise as these validators are quite crucial to the efficacy of the protocol. So by necessitating validators being stakeholders — staking FIS tokens — they are less likely to renegade on their duties. There’s also the implication of slashed staked FIS tokens should validators falter in their duties.
How Safe Is The Stafi’s Staking Contract?
With Stafi in the picture, there’s bound to be some uncertainty regarding the safety of staked assets. But Stafi doesn’t bear the risk alone. The security of the assets is handled by the original chain, but the protocol’s multi-signature address is often at the center of distrust. Fortunately, validators are randomly picked through algorithms and there’s zero possibility of collusion among these individuals.
Stafi Protocol looks to be the future of PoS blockchains. With the full capabilities of the protocol unleashed, issues of locked liquidity are eliminated. And this is actualized without ruining the decentralized principles of the connected chains.
You can read up more about Stafi by visiting their website here: https://m.stafi.io/