What is Stafi (FIS)?
StaFi, or Staked Assets Financial Infrastructure, is an innovative decentralised finance (DeFi) protocol designed to unlock liquidity for staked assets. It aims to enhance the utility of Proof of Stake (PoS) tokens, allowing users to maximise their investments effectively.
Understanding Staking and rTokens
Staking is a process where users lock their cryptocurrency to support a blockchain network’s operations, particularly in PoS systems. While staking typically provides rewards, it often requires users to lock up their assets for extended periods, preventing them from accessing their funds. StaFi addresses this issue by allowing users to stake their PoS tokens through its protocol in exchange for rTokens.
rTokens, such as rDOT representing staked Polkadot, provide liquidity to users while still allowing them to earn staking rewards. This functionality means that users can trade rTokens at any time without losing their staked positions, providing flexibility in their investment strategies.
Benefits of Using StaFi
- Liquidity for Staked Assets: StaFi allows users to retain liquidity in their staked assets, enabling them to participate in DeFi activities without sacrificing their staking rewards.
- Interoperability with Multiple Blockchains: The rBridge feature allows users to access diverse DeFi ecosystems across major blockchains like Ethereum, Polkadot, and Cosmos. This interoperability broadens the opportunities for users.
- Enhanced Security: StaFi’s technology framework aims to tackle the challenges around the security of mainnets and token liquidity, mitigating potential risks associated with staking.
The Technology Behind StaFi
At its core, StaFi employs a sophisticated technological framework that provides a secure and efficient way to stake digital assets while ensuring that users maintain access to the liquidity of their investments. The protocol is built to bridge the gap between staked assets on PoS blockchains and the thriving world of DeFi.
How to Get Started with StaFi
To utilise StaFi’s offerings, users need to connect a compatible cryptocurrency wallet that supports rTokens. Once connected, users can stake their PoS tokens through the StaFi platform and receive rTokens in return. These rTokens can then be used in various DeFi applications or traded on supported exchanges.
Official Resources
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