Stafi, unlocking the liquidity for Staked Assets


Continued participation

StaFi, short for Staking Finance, is a pioneering multi-chain liquid staking protocol designed to unlock the liquidity of staked assets in Proof-of-Stake (PoS) blockchains. By addressing the inherent conflict between network security and token liquidity in PoS systems, StaFi enables users to stake their tokens without locking them up, allowing continued participation in on-chain activities and decentralized finance (DeFi) ecosystems.

https://docs.stafi.io/

When users stake their assets through StaFi’s protocol, they receive corresponding “rTokens” (reward tokens) such as rETH, rMATIC, rATOM, rBNB, or rSOL. These rTokens represent the staked assets and accrue staking rewards over time. Importantly, rTokens are tradable and can be utilized across various DeFi platforms, providing liquidity to otherwise locked staked assets.

StaFi offers multiple avenues for users to earn rewards:

  • Staking Rewards: By staking native tokens through StaFi, users receive rTokens that accumulate staking rewards from the original blockchain. The exchange rate of rTokens increases as rewards are earned, allowing users to redeem more native tokens over time.
  • Liquidity Mining: StaFi collaborates with various DeFi protocols to create liquidity pools where users can stake their rTokens. Participants in these pools earn additional rewards, often in the form of StaFi’s native token, FIS. For example, rETH holders can add their rETH to liquidity pools on platforms like Balancer or Curve and receive rewards generated from trading fees and additional incentives from StaFi and third-party protocols.
  • Mint Programs: StaFi initiates staking incentive programs where users who stake their tokens and mint new rTokens receive FIS rewards proportional to their stake. This approach encourages staking through StaFi’s platform and enhances the liquidity of rTokens.

StaFi operates as a decentralized autonomous organization (DAO), with governance managed by the community and core team members. Decisions regarding protocol parameters, such as fee structures and node operator selection, are made collectively. The DAO also accumulates service fees to fund research, development, liquidity mining incentives, and protocol upgrades, ensuring the sustainability and security of the network.

StaFi revolutionizes the staking landscape by providing liquidity to staked assets, enabling users to earn staking rewards while maintaining the flexibility to engage in DeFi activities. Through its innovative rToken system, collaborative liquidity mining initiatives, and commitment to security and decentralization, StaFi offers a comprehensive solution for maximizing the utility and profitability of staked assets across multiple blockchain ecosystems.