The Prop CIP-32 Passing — New Derivatives on StaFiHub
I recently woke up to the news that Prop CIP-32 on Carbon has been passed, which is massive for both Carbon and StaFi Protocol communities.
This article gives a little background on why this is important.
The proposal was made to get community approval to allocate US$10,000 worth of SWTH from the Switcheo Development Fund (SDF) to the approved wallet address held by StaFi Hub for the development and deployment of the liquid staking derivative of $SWTH, rSWTH as agreed by StaFi Protocol and Carbon. The address is <swth1j8rs8vx45q6puzy9rpchtkchdxp5h4qcmvn9jy>.
The set out plan for the funding was such that the first 30% would be delivered when the CIP-20 proposal is passes, another 30% delivered as soon as the rSWTH is delivered and the last 40% delivered when the incentives for rSWTH/SWTH and rATOM/ATOM pools have been completed.
It is quite easy to see the logic behind this. Users would be able to use their staked SWTH assets for other DeFi activities while still collecting staking incentives if SWTH had a liquid staked version. With a startling 70% of all SWTH presently staked, this may be able to significantly increase the Carbon ecosystem’s liquidity. Carbon decided with doing this on StaFi because of StaFi’s cross-chain infrastructure. This would make the transition smooth and less expensive as opposed to other platforms when creating the liquid staking version of the SWTH token. This was on the backdrop of votes carried out by the Carbon community deciding to use StaFi over Stride.
This would mean that soon enough, we’d be seeing rSWTH alongside rIRIS, rHUAHUA and rATOM on StaFiHub. With the passing of the proposal already completed, the initial 30% deposit is set to be delivered and StaFinauts are so pumped about this.
In order to encourage the $rSWTH liquidity pool, Carbon will launch a dual-token incentive campaign using StaFi Hub that uses $SWTH and $FIS. The rewards will be distributed equally. In addition to Carbon, StaFi Hub will offer incentives in $FIS tokens, its utility token, to help $rSWTH and $rATOM gain popularity and liquidity.
This would serve as a gateway for more and more projects looking for liquid staking solutions that they can use as the main aim is Smarter Liquid staking for more yields on assets.
Congrats StaFi. Congrats Carbon.
StaFi Protocol is the go-to liquid staking portal for all Proof-of-stake chains. They do this by building synthetic, reward-bearing and tradable rTokens.
Carbon is a platform for decentralized financial markets in the Cosmos ecosystem