r- DEX — StaFi network’s Decentralized Exchange Medium
Today we’ll be looking into a recently developed Initiative called r- DEX v1, which is going to be released over the course of 2022. Before this information is rendered, a short info on what StaFi is will be stated below:
STAFI INTRODUCTION
StaFi network is simply a Decentralized finance protocol based on the liberation of staked asset Liquidity. Through the StaFi project, global operators can now stake PoS based tokens in order to gain r- tokens. r- tokens are simply synthetic staking derivatives which will be issued to users through the StaFi network when they stake PoS coins on the r- token Application. These r- tokens include: r- ATOM, r- ETH, r- DOT and so on.
Full details on r- Dex will be stated below.
r- DEX FEATURED INFORMATION
r-DEX v1 is basically a decentralized Exchange medium built by the StaFi network. This medium was made to avert issues concerning r- token based Liquidity. It’s going to enable community based transaction-services to all the r- tokens involved with the Network’s chain. Due to it being an essential part of the r- token spectrum, r- DEX v1 is going to be released on StaFi Network’s chain. The Native r- tokens that are minted by individuals can also be directly exchanged through this Decentralized Exchange medium for greater Liquidity.
Though rTokens can be traded on the main Decentralized Exchange of a PoS chain, that’s mostly a makeshift arrangement for what the StaFi team has in mind. It’s always a good idea to have all synthetic derivatives trading on one singular Decentralized Exchange, and that’s what is expected with the intending launch of r- DEX.
On r- DEX, users will be able to trade their synthetic derivatives without worrying about the availability of liquidity. That was one of the issues that haunted the listing of rTokens on regular DEXs, users had to deal with bouts of price impact problems caused by a liquidity crisis.
StaFi launched r- Swap V1 recently, testing with the gradual listing of r- Tokens, only r- ATOM was supported at first. At the moment, rSwap V1 uses the Exchange-Rate Discount framework to allow for the exchange of rTokens for the actual token. However, that will change with the launch of r- DEX V2. The move to an AMM model will improve the DEX significantly.
r- DEXs Impact on LiquidStaking
The release of r- DEX will take liquidstaking to a higher level due to a reliance on pooledAssets, making it efficient to trade the r- Tokens for the UnderlyingAsset. On r- DEX, r- Token based trading will be done with taxes paid in FIS token. Users will have the ability to swap any r- Token in 1 place. r- Token holders can now sink their teeth in the fees accrued from trading on r- Swap as long as they add to the pool. It’s one of the perks of the liquid staking solution that StaFi offers. Those that stake their assets on PoS chains through the StaFi contract can maximize their earnings by putting their r- Tokens to work. r- DEX will be the game changer for StaFi as no other liquid staking solution has achieved that feat. The introduction of the DecentralizedExchange will put these syntheticderivatives in the spotlight, prompting more people to pay attention to the many opportunities that come with liquid staking. One of the reasons for the widespread partnership between StaFi and several other DeFi protocols is the need to provide more utilities for the growing number of r- Tokens. r- Swap does help in that regard. With r- DEX in the picture, you can expect more DeFi protocols to get attracted to the protocol like flies to honey seeking collaborations. There’s something about a working novelty that stimulates interest, and r- DEX belongs in that category. Having more utilities for r- Tokens creates a demand for these SyntheticDerivatives, encouraging more people to seek them out.
r- DEX FEATURES
Low-Slippage will be enabled in both medium & small-sized transactions. This is also realised via the AMM CLP Market The result is that a r- Token gets more valuable, offering the holder a liquidrich asset that can easily be converted without system. FIS token will also be the basic exchange product for all r- token TradingPair in order to maximize Liquidity.There is also going to be protection from temporary losses. Also, the losses that have been incurred by the LPs (Liquidity Providers) is going to be fully compensated by the FIS Coin.Liquidity could also be granted by any dual or single DigitalCurrency System with Varying ratios.
TYPES OF PARTICIPANTS
On the Upcoming r- Dex V1, there will be 2 types of participants, namely; The Traders and the LPs. More info on them will be detailed below:
The Traders
The Traders here can efficiently exchange 1 token or coin for another via r-DEX V1 by utilizing the price depending on the LiquidityPool Ratio.
LPs
The liquidity providers here will add r- tokens or the FIS coins to their own corresponding r- DEX v1 PairPool in order to gain LP taxes as income or Liquidity MiningRewards.
For more info about the r- Dex and StaFi’s recent developments head here: https://medium.com/stafi/stafi-protocol-monthly-december-community-updates-8084fb5f2250?source=social.tw&_branch_match_id=956551136555987212&_branch_referrer=H4sIAAAAAAAAA8soKSkottLXz8nMy9bLTU3JLM3VS87P1Tc0LsrPrsoKKs5NAgCjiMtNIwAAAA%3D%3D
CONCLUSION
Later on in the future, StaFi Network’s team is really going to research the IDO of the latest r- token products, in order for r- DEX v1 operators to directly utilize Native coins to buy newer r- token products at a specific discount when they are listed. It is also important to note that, the FIS coins are going to be used for r- DEX V1 Liquidity-Mining Incentives. As they release the r- DEX v1 in 2022, more users will be given a stable medium to trade their r- token products efficiently and safely.
As enticing as the future of liquid staking might be with StaFi & r- Swap in it, the road ahead isn’t a jolly ride. There’s a lot that needs to happen. The launch of r- DEX should be seen as a first step in a journey of several steps. Liquid staking is relatively new, so lots of tweaking will happen along the way. Interestingly, the StaFi team has a firm grip on development, so we can expect great things
