The advent of the proof of stake consensus opened doors to new opportunities; staking pools and staking derivatives belong here. All PoS chains derive consensus using the affirmation of assets staked on the network. This creates problems that require novel solutions.
StaFi Protocol came into the picture on the premise of offering its liquid solution to some of the new challenges faced on PoS chains. The result is StaFi’s unique selection of staking pools and staking derivatives.
StaFi’s Staking Pool Explained
In providing solutions to the emerging problems bedeviling PoS chains, Staking Finance Protocol uses a staking contract that connects to the network involved. Picture the staking contract as a plugin that lets you get out whenever you want without losing touch with your reward.
One benefit of the StaFi staking pool is it puts aside some of the unfavorable conditions required by POS chains. For instance, to stake solo on Ethereum’s POS chain – Beacon Chain – you need a minimum of 32 ETH. However, by staking your ETH through StaFi’s staking contract, such a condition no longer affects you.
StaFi’s staking contract consists of validators, so the technical aspect of staking is done for users of the StaFi protocol. The ease of using the staking contract is seamless due to the impressive interface of the StaFi rAPP.
Since the StaFi staking contract consists of multiple users depositing their native asset, there’s enough liquidity in the protocol to allow users to unstake their asset as quickly as possible.
If you stake your asset using StaFi’s staking contract, you get a staking derivative. This item confirms your contribution to the pool. The staking pool and derivative are intertwined as we’ll find out soon enough.
StaFi’s staking contract delivers on the PoS staking needs of users using smart contracts.
StaFi’s Staking Derivatives Explained
StaFi’s staking contract doesn’t operate in isolation. It interacts with the contract of the relevant chain, making it possible for users to earn staking rewards on the PoS chain. Yet, there’s one thing that makes StaFi’s contract tick: the staking derivatives.
On staking your asset through StaFi’s staking contract, you are issued a staking derivative called the rToken. For the different PoS chains that StaFi interacts with, there’s a distinct rToken issued to stakers. An example is the , a staking derivative given to those that stake their BNB through the StaFi rAPP.
The valuation of the staking derivative issued to a user is equivalent to a staker’s contribution to the staking contract plus the staking reward accrued.
A user depositing BNB through the StaFi staking contract will get rBNB. Initially, the BNB user stake is the same as the rBNB issued. However, as the staking reward accrues on the derivative, its value tends to be higher than the BNB staked.
Users can exchange their rToken for the actual coin using the relevant decentralized exchanges. For instance, rBNB is listed on PancakeSwap; rETHUniswap,Quickswap.
The use of staking derivatives makes PoS staking as liquid as possible. This way, users are enthusiastic about staking as they can exit the process at any time.
What To Expect Going Forward
Staking derivatives will redefine the future of asset staking. Many expect these interest-bearing tokens will be game-changing for PoS chains and those looking to participate.
StaFi hopes to push the capacity of staking derivatives beyond the liquid solution they offer. The DeFi protocol has started the process through the staking and lending opportunities that exist for rTokens. With more collaborations in the works, rTokens will be more than just a Plan B for PoS chain stakers.
For more information, visit these websites below:
rToken App
Telegram Chat
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