Staked Representatives of Polygon Gem, MATIC, soon on StaFi Protocol — A New Age with rMATIC
In a move that ticks all the boxes, we would be seeing yet another addition to the rToken family on StaFi protocol. 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. When you stake your assets on the PoS platform, they generate rewards for you based on the quantity staked. There is however a twist. These assets are locked and you cannot use them after staking. That’s where StaFi comes in but how does StaFi protocol do this?
StaFi would issue users representatives of their staked assets. Let’s say a user stakes ETH, the ETH will be locked in the platform while the user will be issued an rToken called rETH. With the rETH, the user can move into the DeFi space for more yield while they are still making gains with their staked assets. This is the beauty of StaFi protocol. This rETH received is anchored to the ETH tokens that you have staked as well as the rewards to be received.
Why this make sense
Polygon is the top layer 2 scaling platform for Ethereum. Previously known as Matic Network, they have shown a lot of structure, growth and wide scale adoption that has caught the eyes of many. As of today, they can boast of over 450 Dapps, more than 300 million transactions on mainnet and a plethora of users that exceed 13 million. An easy-to-use platform, users and Dapp developers are onboarding to leverage on the low gas fees, high transaction throughput and high speeds. Polygon is indeed the next big thing in the blockchain space. Having the staked representatives of this project gives StaFi protocol a huge access to the large community of Dapps and users, onboard Polygon.
rMATIC
Like other rTokens before it, rMATIC would serve the same purpose by being the staked representatives of MATIC. When a user stakes MATIC on the StaFi protocol platform, they would receive rMATIC which can then be traded or used for other activities like lending and borrowing in the DeFi space. This move was made possible after StaFi won the grant from the Polygon foundation earlier this month. The entirety of the fund would be used to research further into the development of rMATIC. StaFi wouldn’t be alone in all these as Polygon would also ensure to deliver support in the form of techniques and adoption for StaFi and MATIC together.
What this entails
rMATIC would be a tool that would help solve the problem of liquidity for MATIC, Polygon’s token. Users will be issued rMATIC when they stake MATIC on StaFi and this rMATIC will be anchored to MATIC 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 rMATIC by StaFi.
This is a move that ticks all the boxes for both parties involved. Let’s enjoy the beauty of layer 2 token, MATIC on StaFi as we unlock the liquidity of our staked MATIC while also securing the Polygon mainnet through staking.
Contact
StaFi website: https://stafi.io
StaFi Twitter: https://twitter.com/stafi_protocol
Polygon Website: https://polygon.technology
Polygon Twitter: https://twitter.com/0xPolygon
