Levarage staking with StaFi Protocol.

Cryptocurrency staking is a process of locking up a blockchain native token to receive massive rewards, staking is done in any blockchain that leverage the proof of stake as a consensus mechanism.

Proof of stake is a type of consensus mechanism that work by selecting validators in proportion to their quantity in the associated crytocurrency. With this system, owners of cryptocurrency can stake their token with the right to stack new block of transactions.

StaFi introduce rTokens

StaFi which is a Defi protocol unlocking liquidity of staked assets have introduced rTokens, these rTokens are fully redeemable for unlocking staked assets at any given time which is also subject to locked up period that is programmed by the original chain.

These rTokens are liquid and transferable on both centralized and decentralised exchanges allowing traders to trade while earning rewards, rToken holders are entitled to considerable staking of rewards attached with their staked assets by leveraging Stafi smart and automated staking rewards.

By introducing rTokens, StaFi has empowered the re-circulation of staking crypto native assets of the proof of stake chain. rTokens with its usefulness are given to stakers of native tokens and they get corresponding staking rewards in returns, which means rTokens are a major ideal collateral in the lending protocol, lending native token and stablebcoin in exchange for liquidity.

Leverage staking

Leaverage staking allows users to mortgage rTokens and lend out native tokens through a lending protocol and then stake native rTokens through Stafi rTokens App to do the double staking.

Let’s take a cue from liquee lending protocol.
Morgan stakes 10 ATOM through the StaFi rATOM app and he gets 10 rATOM tokens, assuming the exchange rate is 1:1 then, with an APY of 8.08%.

Morgan might want to increase the staking APY with same 10 ATOM in liquee and lend a certain amount of ATOM maybe 5 ATOM token.

The liquidation risk is low since the value of the ATOM tokens will increase as the staking rewards are generated continuously he can decide to restake 5 ATOM token he lent from out through StaFi rATOM App again. In this manner Morgan use 10ATOM to get staking rewards of 15 ATOM.

About Stafi Protocol

Stafi is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through Stafi and receive rTokens in return, which are available for trading, while still earning staking rewards. FIS is the native token on Stafi Chain. FIS is required to provide security to the network by staking, pay for transaction fees on the Stafi chain, and mint & redeem rTokens.



Blockchain Enthusiast | | Community Manager | | Digital Marketer.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Alaka Olalekan

Blockchain Enthusiast | | Community Manager | | Digital Marketer.