Proof of Stake (PoS) has been an alternative proof of work for a while now which stands to validates how a coin is mined or a block transaction is validated. It means the more the mined or staked coin, the more the staking power or rewards achieved. PoS uses its consensus mechanisms to achieve a distributed consensus through a blockchain.
With the implementation of Proof of Stakes(PoS), the staking power or staking rewards is making huge waves and also growing to gain massive traction . Over 160 projects have adopted the PoS consensus mechanism and the total staked assets has made huge returns.
We’ve seen a lot of projects where there are breaches to staked funds, this has lead to a lot of hacked staked assets and this same projects still doesn’t offer maximum security on staked assets, validators liquidates.
Staking Finance (StaFi) Protocol has seen these bottlenecks encountered through PoS and It being the first decentralized protocol built on Polkadot has provided measures in unlocking liquidity of staked assets. The measures taken in curbing this problems is implementing the rToken solution. This solution would empowerover hundreds of projects who uses PoS as a preference in achieving a distributed consensus.
Stafi_Protocol would make available a secure and fast rToken issuance which would provide liquidity for all staked assets.
rToken
rToken are minted tokens generated on the Stafi_Protocol which stands as a redeemable token for all staked assets. Stafi_Protocol serves as a guard in curbing market volatility by allocating a varied quantity of reward as staking is done. It also makes your staked token available for trading while it’s still locked during the staking process.
rToken is the rewarded token given to users/ stakers who stakes a token to earn a redeemable token. Imagine it this way, You stake FIS, ETH or DOT and earn rFIS, rDOT or rETH in return in addition with the staked token. The higher the exchange rate of the rToken, the higher the staking rewards for that native token accumulated.
You can obtain rToken either through the:
i) StaFi’s Staking Contract
ii) Uniswap or Other exchanges.
As the PoS Consensus grows, there are still variety of reasons why everyone both stakers, validators and PoS projects needs rTokens. Like I said earlier, Stafi_Protocol stands to tackle a lot of issues concerning staking and here are few reasons why you should stake to earn rTokens on the Stafi_Protocol:
- Users can exchange or trade their staked tokens/ rTokens on the exchange market while it is still in its staking period.
- Unlike all PoS projects that lock up staked assets for a longer period of time, Stafi_Protocol offers users access to their assets and create a 14 days redemption period making rewards accessible on the chain.
- Stafi_Protocol optimize users’s staking yield, Validators with the highest rate of return on the chain are capturd through the StaFi’s staking contract pool.
- Provision of an enhanced level of security on all staked assets locked on the StaFi Staking Contract.
rToken Categories
Stafi_Protocol have made classification of the rewarded tokens (rTokens) into four different categories, which are:
i) rToken for Ethereum 2,0 Staking.
ii) rToken for Polkadot.
iii) rToken for Cosmos Ecosystem
iv) rToken on the Eos and other ecosystem.
Stafi_Protocol would offer stakers access to a lot of liquidity solutions and flexibility regarding amount of staked tokens . The development of the above listed categories would be focused mainly on the development of the rETH, rFIS and rDOT and as times goes on, It would further go global on other ecosystems.
To get more insight on the StaFi Protocol whitepaper, Read more here: https://docs.stafi.io/stafi-whitepaper/
For More Information about StaFi Protocol:
Website: https://www.stafi.io/
Telegram Group: https://t.me/stafi_protocol
Twitter: https://twitter.com/Stafi_Protocol
Discord: https://discord.com/invite/jB77etn
Medium: https://medium.com/stafi
