An Overview of StaFi Protocol
Introduction
Stafi presents a solution to the conflicts between mainnet security and token liquidity in the existing Staking model.
By Staking in exchange for equal rTokens, a token holder is rewarded bonded assets.
Stafi Protocol
Stafi is a decentralized protocol that permits liquidity. It features 3 layers; the bottom, the contract and the application.
The Bottom Layer is based on a blockchain system established by Substrate.
The Contract layer supports the creation of variety Staking Contracts.
The Application Layer supports third-party and customized APIs so that rTokens can be conveniently circulated, transfered and traded.
Stafi will be connected as a parallel chain to Polkadot, sharing its underlying consensus and also the security and performance, as guaranteed by Polkadot.
Implementation
1. Through Staking Contracts — Staking Contracts creates interaction with the Stake original chain at Stafi contract level.
2. Multi-signature Addresses — Assets ownership is not to any individual, i.e no one can own the private key of this address and it is not stored on Stafi protocol. It is only formed by the signature of the special authenticator’s private certificate.
3. Secure Multi-party Computation — Validators not just transmits calculation results through the encrypted channels, they also manually verify the results without having to reveal their own private key.
4. Ownership Transfer — If a user trades his XTZ, the seller loses his redemption right to the original chain, this the mapping relationship he has with XTZ and his multi-signed address is given to the buyer.
5. Stafi Special Validator (SSV) — Completely different from Stafi Validators (SV), they are made up of randomly selected persons through system automated process. SSV is the witness of the asset ownership, participates in the calculation and completes the transfer from the multi-sign address to the personal address during contract redemption.
6. Encouragements and Penalties for Special Validators — a system to encourage and stimulate positive behaviors like calculating and storage and to punish negative behaviors like disconnections and non-timely replacements has been established.
7. Staking Mechanism for Special Validation — Holders of Stafi tokens can apply to become a special certifier. All he needs is to stake FIS token.
8. Staking Contract Security — Asset security is guaranteed for a Staking contract. Its neutrality will be locked and the mapping recorded in the SC and the multi-sign address uses the asset mechanism.
9. Decentralization of Staking Contracts Assets
As a decentralized protocol, Staking contracts will be audited and outsourced to third-parties.
Bonded Asset Circulation
Staking Assets can circulate on Stafi hence, users can easily trade assets without waiting for the original asset to be locked up.
Staking asset can also be circulated as a common asset even in centralized trading exchanges. This way the centralized exchanges can plug into the Stafi interface and define initial pricing of rTokens.
rToken Exchange Market
FIS can be issued as the platform medium of exchange recycle tokens for users who have difficulty finding counterparts. The issued FIS will bring extra risks to it’s holders, but this risk will be borne by all of them to reduce the chances of bad debts.
The integration with existing DeFi lies on asset level. Though many ERC20 tokens are relatively low in liquidity, Staking Token can be used for DeFi to enhance liquidity and asset portfolios.
Tokenomics
The FIS is the original digital cryptographically secured utility token of the Stafi. It is transferable representation designed to used as the primary utility token on the platform. The goal of introducing FIS is to provide a convenient and secured payment mode between participants on the Stafi platform. It is not to be a medium of exchange as payment for goods and services by the public.
Current market value of Staking Token is 1.4 billion USD and about 60% of these is locked.
Token Model
There are 2 types of token on the Stafi.
i. The alternative token (rToken); the main medium for liquidity
ii. The native token (FIS); medium of transaction.
Initial Token Distribution
A large part of FOS is allocated for community reward for initial distribution.
Users can participate through Staking Drop i.e Staking Contracts to obtain the rewards. Staking Drop is a long term campaign to be held on annual basis.
Summary
There are challenges for technology and Stafi, with it’s secure protocol can survive cyber security attacks.
The essence of Stafi is to issue alternative tokens based on Staking Assets. The prospects of expanding underlying assets to more forms of encrypted assets is what Stafi is looking to.
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