Unlocking Liquidity with StaFi Protocol
In an era of technological advancement, a lot has happened and we have cryptocurrencies and blockchain technology. This advancement has given us many tech gadgets and protocols in cryptocurrency, and one of them is the StaFi protocol. For the sake of newbies in the field, we’d talk about cryptocurrencies before diving into the nitty gritties of StaFi Protocol. Cryptocurrencies are digital currencies in which transactions are verified and records maintained by a decentralized system using cryptography (code), rather than by a centralized authority. That is the basis of the blockchain. It is a growing chain thus, a new block has to be added to the growing chain to keep the network secure. There are various mechanisms for this with the prominent ones being the Proof of Work and the Proof of Stake.
Proof of Work
The Proof of Work is the basis of the first cryptocurrency, Bitcoin. A hash is set and miners would race against time and themselves to be the first to solve it. The winner of this contest would be the one to add the next block to the growing chain.
Proof of Stake
For the Proof of Stake, it’s basically the same aim of adding a new block but it’s done by a totally different approach. Here, the users would have to lock their stake and stand to be picked by the protocol as the user to add the next block to the growing chain. The higher your stake, the more your rewards. The network remains secure, all the same. Staking in PoS protocol-based projects means locking assets in one project for some time and expecting a fixed, predetermined staking reward in return. This is usually based on the APY given. The problem is that these assets are locked and basically, you can only get the little staking rewards that trickle in. That’s where liquid staking comes to play. With liquid staking, you can use the staked crypto assets more effectively for other trading or investing opportunities to get the best rewards on your staked assets, as well as the returns from new trading/investing opportunities that you see in the DeFi space. This brings us to StaFi Protocol.
StaFi Protocol
StaFi is short for ‘Staking Finance’, and it is a DeFi (decentralized finance) protocol that seeks to unlock the liquidity of staked assets. With StaFi protocol, you’re looking at a project that would provide liquidity solutions for all PoS projects, making staking easier and more lucrative. For now, some PoS assets are already being staked on the StaFi platform and these include assets of some of the top projects out there. You have liquid solutions for Ethereum (rETH), Binance (rBNB), StaFi (rFIS), Polkadot (rDOT), Kusama (rKSM), Cosmos (rATOM), Polygon (rMATIC) and most recently Solana (rSOL). These staked representatives are referred to as rTokens. When you stake on the StaFi platform, you receive rTokens (reward tokens). With this rToken, you can redeem your staked tokens and much more, push for more rewards in the DeFi ecosystem through trading, borrowing and lending or even farming. All these without having to wait to wait for the unlocking period to be complete. That’s the liquidity of your staked assets, unlocked effectively.
Bring your assets to StaFi and unlock liquidity
Contact
Website: https://www.stafi.io
Twitter: https://www.twitter.com/StaFi_Protocol
Medium: https://medium.com/stafi
Telegram: https://t.me/stafi_protocol
