Staked Representatives of Carbon, SWTH, soon on StaFiHub— A New Age with rSWTH

3 min readJan 26, 2023

In a move that would appeal to many in the blockchain space,, we would be seeing yet another addition to the rToken family on StaFi protocol via StaFiHub. This time it is rSWTH of Carbon. StaFi protocol has carved out a niche for itself as the first DeFi protocol that would help users unlock the liquidity of their staked assets. Staking your assets on the PoS platform generates rewards for you based on the quantity staked. There is however a plot twist to this. When staked, these assets are locked and cannot be use during the staking process. That’s where StaFi comes in but what role does StaFi protocol play?

StaFi would provide users with representatives of their staked assets. A user stakes DOT, the DOT will be locked in the platform with the user being issued an rToken called rDOT. With the rDOT, the user can venture into the DeFi space for more yield while they are still making gains from their staked assets via staking rewards. This is the beauty of StaFi protocol. The rDOT received is anchored to the DOT tokens that you have staked as well as the rewards to be received.

Why this make sense

Carbon is a cross-chain protocol that acts as a building block for DeFi making it the core of decentralized financial markets. With over $130M+ transacted on-chain, $25mil+ peak liquidity pool TVL, 10,000 Max transactions/second and 1.07b SWTH tokens staked, it’s fair to say that Carbon is powering the future of finance. You might ask, “Why Carbon?”.

Carbon shows its connective side by powering interoperability between blockchains like BSC, Cosmos, ETH and Zilliqa amongst others with a true cross-chain liquidity pools through the PolyNetwork bridge. It shows its versatile side by being able to support any DeFi innovation with native support of crypto derivatives, AMMs, on-chain orderbooks and many more. Finally, Carbon shows stability by being custom-built using the Cosmos SDK and secured by a large network of validators through Tendermint PoS for trustless and safe transactions.

rSWTH

Like other rTokens (rATOM, rHUAHUA and rIRIS) before it in the Cosmos ecosystem, rSWTH would serve the same purpose by being the staked representatives of SWTH. When a user stakes SWTH on the StaFiHub, they would receive rSWTH which can then be traded or used for other activities like borrowing and lending in the DeFi space. This move was made possible after the Prop CIP-32 by Carbon was passed, earlier this week. The first deposit (30% of $10,000) had been sent to StaFiHub to commence with the next steps which includes delivery of rSWTH and completion of incentives for rSWTH/SWTH and rATOM/ATOM pools after the remaining 70% is received.

What this entails

rSWTH would be a tool that would help solve the problem of liquidity for SWTH, Carbon’s token. Users will be issued rSWTH when they stake SWTH on StaFiHub and this rSWTH will be anchored to SWTH assets staked by users and the staking rewards that follow. It wouldn’t end there. A lot of scenarios (trading, yield farming, lending) will be created for the rSWTH by StaFi.

This is a move that ticks all the boxes for both parties involved. Let’s enjoy the beauty of Cosmos-based token, SWTH on StaFi as we unlock the liquidity of our staked SWTH while also securing the Carbon mainnet through staking.