STAKING FINANCE INTRODUCES AN INNOVATIVE APPROACH TO OPTIMIZE STAKING ON THE StaFi CHAIN.
StaFi protocol on a grand scale of things has maintained its status as the top defi protocol creating accessibility for staked assets to be utilized for optimum benefit. normally, when a crypto asset is staked, the user is compelled to allow the asset complete its lock up period before redeeming and earning the rewards attached to such assets, this is the basic structure of staking, however, the StaFi protocol brings a whole new twist to this practice, with a compelling and a properly audited smart contracts, the liquidity of staked assets are unlocked and made accessible for stakers to trade and make gains while their staking rewards are preserved.
The intention of the staking finance network is to find solution to the existing contradiction between mainnet security and liquidity of tokens in a proof of stake consensus through its innovative protocol. basically, tokens holders stake through the staking contracts within the protocol and are issued an alternative token ;rtoken eg rEth which are tradable on compatible exchanges while users can concurrently earn staking rewards.
the rtokens are obtained through the staking contracts on a 1:1 ratio, by holding the rtoken, the user can still obtain staking rewards, however, the network adjusts the redemption right as well as the reward to be consistent with executed transaction.
CHALLENGES OF StaFi CHAIN REGARDING STAKING OF RTOKENS
It’s been more than one year since the StaFi chain debuted, over this period it has gained massive validators as about 250 validator nodes are already participating while 90 others are queued up on the waiting list, this is incredible considering it’s been only a few months of operation, however there seems to still be a few loopholes plaguing the StaFi chain and limiting wide scale adoption, let’s take a look at a few below
1. The chain is designed on the auspices of decentralization, unfortunately, with some validators running multiple nodes simultaneously, it breaches the principle of decentralization as well as weakens the security of the chain.
There are not sufficient validator identities on chain, only a few validators have obliged to the idea of setting up their identities.
The StaFi foundation which is consolidated to stimulate validators is yet to achieve its main purpose.
The commission for validator nodes accepted by the foundation is quite high.
5. high demand of validators with the evolving nature of rtoken applications on the StaFi chain.
There are not enough professional validators within the network’s popular validator group.
the aforementioned and a few other lags have completely become a bane to the development of not only the security of the network but limited staking on the StaFi chain from having a wider reach, the staking finance network as a result has proposed an inventive approach to curtail the spread of this menace.
INTRODUCING THE StaFi VALIDATOR ECO BUILDING PROGRAM
The staking finance ecosystem has launched on its platform a StaFi chain recruitment scheme to help attract institutional validators from around the globe to join as core StaFi validators, this incorporation of several institutional validators will massively improve the work ethics and quality of the entire StaFi validators team while setting the stage for a special validator plan to be launched.
The move is expected to strengthen the concept of decentralization and improve the influence of validation on the StaFi chain, here every validation provider is welcome to apply, there are no restrictions, however, the StaFi foundation will decode the winners of the program as grants. It is pertinent to point out that there are a few rules to the program, every validator who wishes to participate in this movement must be familiar with.
RULES OF THE VALIDATOR ECO BUILDING PROGRAM.
Community Applications
The StaFi validator eco building program will see the application made accessible to the member of the community, professionals to apply, however, there will be a comprehensive decision based on the submitted applications as well as contributions to the development of the rtoken ecosystem, this contribution shall be put into consideration and will inform the decision of the StaFi foundation towards picking the winners. Meanwhile, there are instances where a foundation nominated verifier invited voluntarily can be disqualified even after investigation, running of multiple StaFi chain nodes and exceeding and if the number of nominations the verifier receives exceeds the max number acceptable.
Unsolicited Invitation
famous institutional validators will be proactively contacted in form of invitations to participate in the program as nodes on the StaFi chain, however there are two important requirements expected of these verifiers, they include high visibility and vital partners of the staking finance ecology thermore, the validators who are selected as winners in the StaFi validator building program, the criteria for nominating them by the StaFi foundation include:
1.Validators are allowed to set their commission as they require, however the project delegations will be kept for those within the 5% or commission range or less.
2.The foundation does not intend to delegate up to 500000 fis per validator and delegation will not be made to verifiers with 5% voting rights.
3.Verifiers who have been chosen by the foundation are expected to participate actively and contribute their quota in the development of the StaFi community, this is quite important to the StaFi foundation and will be a determining factor when renewing validator qualifications.
4.Validators are also expected to create on -chain identity and present a rather detailed information about them to the foundation for effective on-chain community disclosure.
5.The validation performance, contributions to the community, reputation of the nodes appointed by the foundation shall be under a quarterly review 3months, those who have failed to meet expectations or attain general optimum validator performance shall be disqualified in the subsequent quarter.
CONCLUSION
The Staking finance platform has taken giant measures to ensure users make great returns from staking their assets. The network presents an alternative approach to unlocking liquidity of staked assets such that stakers do not have to wait out the entire lock up period to redeem their assets and rewards, however, the StaFi chain has seen some major irregularities from validators which have contributed to the weakening of the chain’s security, decentralization structure and hampered development.
The Validators eco building program has been initiated by the foundation to help pick the very best validators available, however, there are criteria and expectations to be met before one can be accepted as a validator by the foundation, this approach may seem rigorous and complex, but it still is a sure bet to ensuring the StaFi chain reaches its full potential.
To learn more, you can join and follow the StaFi Protocol community with the links below;
