Stafi - Staking Derivatives
Stafi Derivatives - A Simple Overview
Staking is at the forefront of many cryptocurrencies released in 2020 and even Ethereum with the ETH 2.0 update is gradually migrating towards proof of stake. Meaning that for network transactions to be validated a set number of tokens must be staked in order to run a node.
Solution
A new trend that is emerging is staking derivatives where protocols like Stafi (FIS) that are based on Polkadot solve the liquidity problem of staked assets. Usually when an asset is staked the coins are taken out of circulation and locked for a period of time. Stafi solves this problem by introducing rTokens that are released at the moment when you stake various assets like ETH and the native token of Stafi (FIS) for example and you in return get rETH and rFIS that can be traded on exchanges like Binance and its decentralized counterpart Uniswap.
This solution gives the user to receive the staking rewards while being able to do whatever he wants with the base capital that is staked. rTokens can be traded freely and thus unlocking additional opportunities for trading and even providing liquidity on the Uniswap pairs or any other decentralized exchanges that rTokens are listed thus creating double profit potential with one bullet.
For unlocking the native tokens, Ethereum and Stafi, the rToken will be required to be returned and burned so you unbound (unstake) your native assets.
Stafi is working on adding more cryptocurrencies to its DEFI application. Stafi team is working on providing a staking app for Polkadot (DOT), Kusama (KSM, Comsos (ATOM) and at the same time is working to provide a universal rToken building instrument so every cryptocurrency project to be able to build an rToken and provide liquidity to its staking model in a very short period of time.
The future of defi is here - staking derivatives!