Stafi rBNB Liquidity Solution
Missed the Stafi rBNB liquidity solution official announcement? Here is a catch up. If you are a fan of Stafi Protocol, you would know that their long-term goal is to offer liquidity for all PoS projects, making staking more convenient and flexible. StaFi has published six rToken solutions to accomplish this, including rETH, rFIS, rDOT, rKSM, rATOM, and rMATIC.
Stafi Protocol recently launched the rBNB solution, a decentralized DeFi product which solves the staking liquidity problem for the Binance Chain community. StaFi issues the rBNB token as a synthetic staking derivative when users stake BNB using the StaFi rBNB App. The staked BNB assets and the related staking rewards are tied to the rBNB tokens. At any time, rBNB tokens can be transferred and traded.
Binance Eco has two blockchains which include; the Binance Chain (BC) and Binance Chain, which is the BNB staking layer, now has programmability and interoperability thanks to BSC. To be clear, the stakers are effectively staking BNB in BC, but Binance has the cross-chain toolbox to allow BNB holders on BSC to stake BEP20 BNB directly to delegate to the BC validators.
Introduction of rBNB App
The rBNB App serves to solve the liquidity of BNB staking. The core participants of the app are the stakers, original validators, and stafi special validators.
With the rBNB app, stakers do not have to wait for 7 days to unbond the staked BNB assets. App users can also transfer, mortgage, and trade rBNB assets at any time to liberate liquidity and hedge price risks.
The issue of learning the complicated Binance Chain’s Tendermint BFT consensus mechanism or staking reward calculation rules when a user wants to maximize staking rewards has been solved, such complex procedure is no longer necessary, all the user has to do is to follow a few steps to deposit BNB into their rBNB contract, which will automatically select the best validator for delegation by the rewards maximization strategy.
For the rBNB/BNB exchange rate, StaFi will determine the amount of rBNB to issue to a user when they deposit BNB into the rBNB contract, based on the current exchange rate between BNB and rBNB. StaFi will determine the amount of redeemable BNB based on the real-time BNB staking incentive when a user possesses rBNB.
When utilizing the rBNB App, users do not need to claim staking rewards; the on-chain staking contract will automatically re-stake the rewards to create the greater APR. The staked BNB and accompanying incentives can be redeemed at any moment through the rBNB App. Following receipt of a redemption request, rBNB contracts will automatically unstake and remove BNBs from the BC BNB staking contract, then deliver the BNB tokens to the user’s BSC address after about 14 days.
Solution Value rBNB Brings
StaFi solves a couple of problems for BNB holders through rBNB. Some of the solutions it has brought about are;
• There is no need to be concerned about the liquidity of BNB that has been staked. Users can trade rBNB on Pancake or mortgage rBNB on lending protocols to free up liquidity at any moment.
• The rBNB contract has a staking reward method that automatically identifies a group of Original Validators with the greatest staking rewards on the chain.
• To restake, the rBNB contracts will automatically collect staking rewards. As a result, stakers do not need to manually withdraw their staking profits and then retake to gain compound interest as they did previously.
NEW TO StaFi?
StaFi is the first DeFi system to allow staked assets to be liquidated. StaFi allows users to stake PoS tokens and obtain rTokens in exchange, which may be traded while still receiving staking rewards. When users stake PoS tokens through the StaFi rToken App (https://app.stafi.io), StaFi issues rToken, a synthetic staking derivative. Users’ staked PoS tokens and the related staking incentives are used to anchor rTokens. At any time, rTokens can be transferred and traded.
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