Stafi Annouce Liquidity Solution For Polygon

The cryptocurrency market is known for its high volatility, therefore an increase in liquidity providers always leads to an increase in trading volume and reducing the frequency of price change.

So liquidity is achieved by increasing the number of available assets in the trading pair. StaFi is the first defi protocol that unlocks the liquidity of staked asset, Users can stake PoS tokens through StaFi and receive rTokens in returns, which are available for trading while still earning staking rewards. StaFi long term vision is to provide liquidity solution to all PoS project in order to make staking easier and more flexible.

StaFi announced the launch of the rMatic solution which solves the problem of staking liquidity for the Polygon network.
rMatic is a decentralised DeFi product initiated by StaFi which was designed to proffer a solution to the liquidity problem of staked Matic tokens on the ethereum mainnet.

rMatic tokens are synthetic staking derivatives issued by StaFi to users who staked Matic through the StaFi rMatic products.

rMATIC product can help MATIC stakers solve two major issues:
1.There will be no need to wait for around 9 days to withdraw the staked MATIC. Users can transfer and trade rMATIC tokens at any time to liberate liquidity and hedge price risks.

2.There is no need to learn the complicated PoS consensus mechanism or staking reward calculation rules if you want to maximize staking rewards. With the rMATIC product, users only follow a few steps to deposit MATIC into the rMATIC contract, which will automatically select the best validator for delegation by the profit maximization strategy.

rMATIC Solution Value

1. There is no need to worry about the liquidity of staked MATIC. Users can trade rMATIC on Uniswap at any time in the future.

2. The rMATIC contract integrates a strategy for maximizing staking rewards, which automatically selects a group of Original Validators with the highest rewards on the chain for staking.

3. The rMATIC contracts will automatically collect the staking rewards to restake. So stakers don’t need to withdraw the staking rewards manually and then restake to generate the compound interest like before.

Staking Strategies

Based on the PoS consensus mechanism (Tendermint Consensus Engine) of Heimdall Chain, the PoS layer of Polygon, and the influencing factors of staking rewards, the rMATIC product adopts the following staking rewards maximization strategy.

1) Diversified delegation. The MATIC tokens deposited by the user will be distributed to several(N) mini staking pools. N will be based on the scale of the deposit. Each staking pool will then select several (M) validators for delegation by the profit maximization strategy, so as to reduce the slashing occurrence probability of a single node.

2) Strictly select Original Validators candidates. The rMATIC product will evaluate the performance data of original validator candidates from the metrics including online duration, slashing record, self-bond ratio, node identity, commission ratio, etc., to ensure that excellent validators with relatively low commission are selected.

3) An automatic delegation strategy that maximizes staking rewards. The solution monitors OV’s on-chain data in real-time, such as commission ratio changes, commission volume ranking, slashing, off-line rate, and other indicators. This ensures that in each Epoch, the system selects the best OVs for delegation while simultaneously reinvesting profits.

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