StaFi Protocol’s rDEX

4 min readJan 31, 2022

With StaFi Protocol you have a platform that is all about improving the Proof-of-Stake consensus protocol by making staking more lucrative and appealing to users.Little by little, StaFi Protocol is bringing solutions to some of the challenges we might face in the staking process as well as making the process even more efficient. This article would be a brief intro into what the rDEX is and what we expect from its features. First, though, we would go through what’s taking it.

Staking

This involves holding the coin of a cryptocurrency project in a wallet or staking platform so as to help secure the network. The beauty of this is that stakers get rewarded for securing the mainnet but the downside to it is that they don’t get to use their tokens for other things as they stay locked.

Liquid staking

The fact that the coins are locked shouldn’t be a problem but when these users see the APRs/APYs that their assets would yield them in the DeFi space, they feel less inclined to continue staking. This would lead to them pulling out their assets from the mainnets of the protocols they are securing in a bid to earn more outside. With liquid staking, StaFi Protocol has solved that problem. This way, your assets remain liquid after staking. How does this work? When you stake BNB on StaFi, for example, StaFi Protocol locks the BNB and gives you staked representatives of your staked BNB. With StaFi, it is rBNB. While your BNB is locked and giving you POS rewards, you can use your rBNB to seek yields in the DeFi space (for even bigger rewards).

rDEX

With the rDEX, StaFi Protocol is trying to create an exchange for tokens. Here you can trade these tokens easily. With the conclusion of intense internal testing, StaFi Protocol rDEX V1 is currently on testnet. Its aim is to help solve the liquidity problems we encounter with StaFi’s rTokens. Let’s say you are able to mint rBNB and after staking your BNB and then you see a DeFi pool for earning with rSOL, you can easily take your rBNB to rDEX and quickly exchange it for rSOL. This would allow you to push the rSOL to the DeFi for more rewards. The rDEX will accommodate all of StaFi’s native tokens which include rBNB. rFIS, rETH, rSOL, rMATIC, rATOM, rDOT and rKSM.

With rDEX, there will be no need for cross-chain migration to other ecosystems as this would be solved.

rDEX features

Now you understand the basic concept of how the rDEX will work. Let’s take a brief look at some of the features

1. rDEX aims to utilize the automated market maker model meaning that there would be a liquidity pool. Unlike decentralized exchanges where you might not be able to get a user who wants the exact opposite of your trade at the same amount, the trading would be done via a liquidity pool. This would result in low slippage in the small and medium-scale transactions.

2. In a move that would promote liquidity, rDEX would have FIS as the trading assets for all the rToken pairs. You will see FIS/BNB, FIS/ETH etc. This will be a very great technique to keep liquidity high.

3. On the rDEX platform, users are protected from impermanent loss. With the FIS token, any loss on the platform will be compensated for. Liquidity providers have nothing to fear.

4. Liquidity on the rDEX can be provided by any single currency. It can also be done via dual-currency models using different ratios.

Let’s enjoy the beauty of the rDEX as we #UnlockLiquidity with style on StaFi Protocol

Contact

StaFi website: https://stafi.io

StaFi Twitter: https://twitter.com/stafi_protocol