r- token Application — A Truly Noteworthy Staking Derivative Placed on StaFi Network
Welcome to all crypto enthusiasts and analysts. Today in the article, we’ll be focusing on the amazing StaFi product called the rTOKEN application. rToken application is here to serve as a synthetic staking derivative issued by StaFi to users when users stake PoS tokens through StaFi rToken App. rTokens are anchored to the PoS tokens staked by users and the corresponding staking rewards. rTokens can be transferred and traded at any time.
The rToken App V3 upgrade was released on the mainnet on the 29th of March, to ameliorate the overall experience of the users by rectifying the problems faced by the community over the past months. The platform has added new UI/UX enhancements to the rToken App which include: Renewed staking page, rBridge page moved to the main navigation bar, Reorganized rAsset page, Optimized staking process, rDEX link integration. Beneficial features of the application and its latest Developments will be stated throughout the article. First off, a little definition of what StaFi is will be provided.
STAFI AND rTOKEN INTRODUCTION
StaFi is the first-ever community-based finance protocol utilized for unlocking staked funds or asset liquidity. Through StaFi, users can earn rtokens by staking PoS tokens. On the StaFi Chain, the native token utilized is called or denoted as FIS, which is required for the network to fully enable security through staking, StaFi chain payments on transaction taxes, and so on. rTokens are anchored to the PoS tokens staked by users and the corresponding staking rewards. rTokens can be transferred and traded at any time.
The liquidity issue of staked assets has been the driving force for their development of rToken solutions. For most Proof-of-Stake projects, staked assets are subject to a certain lock-up period or require a lengthy unbonding period during which the user neither has access to his asset nor is he eligible to receive staking rewards. For example, the redemption period for Cosmos is 21 days, Polkadot 28 days, and StaFi 14 days.
As a result, the User’s ability to trade out of an asset position is limited, especially in anticipation of an adverse market movement, because the user cannot place orders to sell while the asset is being staked. However, through StaFi’s solution, a user can now obtain a corresponding amount of rToken when they stake and enjoy the flexibility and discretion to redeem the native staked assets at any time while still enjoying staking income. More importantly, rTokens can be circulated and traded freely, thus allowing rToken holders to hedge against exposure without the need to worry about unlocking periods.
Over time, StaFi is going to accelerate the development of the standards of the rToken protocol for different public chains by supporting various PoS projects and their developer communities to help them develop their rTokens through the toolkits we provide. It is StaFi’s mission and vision to emancipate the liquidity for all staked assets of PoS projects. Details about it and the various Developments it’s Achieved over time will be stated to comprehend the benefits it delivers.
FEATURES OF THE rTOKEN SYSTEM
Liquidity Staking
Since rtokens can be utilized for collateral purposes on platforms like liqee, rtoken earners can make use of the liqee platform to boost rewards for staking via leverage liquidity staking. For instance, if an individual is a rtoken user, this individual can gain up to six percent APR from staking rewards. For users to boost their APY, they have to deposit their rtokens on the Liqee platform so that they can borrow ETH. Once this is done, holders will then stake the ETH that was borrowed on the rETH application by StaFi to gain rETH tokens, this indicates that the holder’s rETH funds have been leveraged and the APY is boosted to 10%.
Liquidity Mining
LiquidityMining is a term used for DeFi applications, where various individuals provide Liquidity to DeFi apps and gain special rewards for the task. In the context of a network like Uniswap, liquidity mining refers to every user (LPs) providing funds to a specified trading pair open market in order forthe protocols to execute exchanges. Through this program on StaFi Network, users can now stake their LP-based tokens on the rPOOL application to enable FIS-based reward farming.
The r-Bridge feature
rToken will realize interoperability through the cross-chain Bridge function developed by StaFi. For example, rFIS on the StaFi chain can be converted to rFIS on the Polkadot chain through rBridge, so that the holders of rFIS can have access to the DeFi applications built on Polkadot. This means that rETH could also potentially be converted to its counterparts for Cosmos so that its holders could also access the service built on Cosmos.
The Validator System
In the business structure of rToken, Original Validators refers to the original chain validators who have joined the Staking Contract program. To avoid the threat posed by the staking of assets in the StaFi Staking Contract (SC) to the verification security of the original chain, StaFi will not run any nodes on the original chain. At the same time, tokens deposited by users in the SC will only be distributed to Original Validators. It’s also important to note that, StaFi will establish an intelligent rating system that quantitatively scores the performance of each Original Validator that joins the rToken Staking Contract program. Funds will be allocated automatically by the smart contract per the ranking of the Original Validators, and good performing OVs will have an edge over inferior performing OVs.
rToken Governance System
In the initial stage of the rToken business, the core team of StaFi shouldered the responsibility of governance. That is because products such as rBridge, rToken, and Staking Derivatives we’re not fully developed. Meanwhile, community autonomy rules were not clearly defined either. StaFi believes that at this stage, it is unwise to blindly pursue fully decentralized governance.
When StaFi’s core products were relatively matured and the community autonomy rules were clearly defined, StaFi gradually delegate the decision-making on rToken-related issues to the community, achieving on-chain governance. At that time, community members were able to be familiar with the StaFi DAO governance process and have clearer judgments on products and businesses. StaFi today has now virtually become an assistant of the community on decision-making, only responsible for the implementation of some ideas. They believe that this will be a perfect relationship between the community and the team and a good foundation for the full autonomy of StaFi. This is the ultimate goal that StaFi has Achieved with the rTOKEN.
CONCLUSION
The StaFi system is granting a lot of systems, innovations, and solutions to cater to various stakers and users associated with their platform. With the rTOKEN application, users can now easily Use Staking Contracts to make their staked assets liquid and trade rToken (reward-Token) to hedge against market volatility while still earning a reward. And with time, the rtoken’s use cases will expand, which will, in turn, reel more users and investors into the system that StaFi offers.
Official links
Website: www.stafi.io
rDEX: https://app.rdex.finance/
Telegram Chat: https://t.me/stafi_protocol
Telegram Announcements: https://t.me/stafi_ann
Discord: https://discord.com/invite/jB77etn
