StaFi Protocol Making inroads into the Cosmos Ecosystem with Sifchain
It’s fair to say that the Cosmos ecosystem is gathering momentum and widespread attention with the cryptocurrency and blockchain industry. Referred to as the internet of blockchains, Cosmos aims to tackle some of the blockchain industry’s most pressing issues with the most important being interoperability. With Cosmos, the dream is to build an ecosystem where multiple blockchains can connect with ease. Cosmos aims to connect several crypto networks using open-source technologies that enable cross-chain transactions with the most prominent being the IBC. The Cosmos gem, $ATOM is doing well and sits among the top 30 tokens by total market cap. Holders of the Cosmos gem love to stake their gems to secure the network whilst earning massive rewards. Staking APYs however are not that lucrative and so many stakers might not feel the need to keep staking their gems as they might feel there are better opportunities in the DeFi space. That brings us to the concept of liquid staking, where holders can stake their assets and still use it for further yield in the DeFi space. That’s where StaFi Protocol comes in.
StaFi protocol is a decentralized finance protocol that aims to unlock the liquidity of staked assets. It actually means being able to use your locked assets for other purposes while they are locked. Many asset classes are now having staked representatives on the StaFi platform and this is huge. We now have liquid solutions for Ethereum (rETH), Binance (rBNB), StaFi (rFIS), Polkadot (rDOT), Kusama (rKSM), Cosmos (rATOM), Polygon (rMATIC) and most recently Solana (rSOL). These rTokens are issued to the user upon staking on the StaFi platform. With the rTokens, the user can effectively carry out DeFi activities (lending, borrowing and even LP) for better rewards. With these representative tokens, a user wouldn’t have to wait for the unlocking period to be complete in order for them to use their assets for other purposes. They can take advantage of any opportunity that comes up in the DeFi ecosystem while theri assets are still locked thereby removing the risk of price fluctuations. With the rToken, a user can redeem his/her staked assets with minimal fuss. The rToken acts like a receipt. When users get their receipt back, they can reclaim their assets and of course the staking rewards that must have been accrued during the staking period. With the rTokens, the StaFi protocol ensures the security of the system. The rToken also serves as a contract that helps connect the users to the blockchain. A user must hold a specific rToken to be able to redeem the staked assets used to create it, thus safeguarding the interest of the user.
rTokens in the Cosmos Ecosystem
The liquid staking solution for ATOM on StaFi Protocol has been long standing. StaFi Protocol however joined hands with Sifchain to introduce rATOM, the first liquid staking solution for ATOM, into the Sifchain DEX, a milestone for building StaFi’s rATOM user scenarios. This would effectively bring liquid staking derivatives into the Cosmos ecosystem through Sifchain, one of the great Cosmos Eco projects and the first decentralized exchange to enable trade between the Cosmos ecosystem and the Ethereum blockchain. As a result of this we now have the ROWAN/rATOM pair available on the DEX with the opportunity to earn double rewards in $FIS and $ROWAN.
There are a few steps on how to partake in StaFi’s rATOM minting program and Sifchain rATOM liquidity mining program
Step 1: Mint rATOMs, claim FIS rewards, and swap rATOM into ERC20 format;
Step 2: Bridge rATOM into Sifchain, please refer to this guide;
Step 3: Deposit rATOMs into ROWAN/rATOM Pool;
Step 4: Claim ROWAN tokens every week
The collaboration doesn’t end there as StaFi will also work with Sifchain DEX to make further research into liquid staking solutions for ROWAN, which will help ROWAN stakers to generate the maximized staking rewards while still enjoying the friendly liquidity like rATOM. Who knows we might have rROWAN on the cards soon. Let’s keep the momentum going.