What is StaFi?

StaFi, short for Staking Finance, is a decentralized protocol that aims to unlock the liquidity of staked assets in Proof-of-Stake (PoS) blockchains. It is the first multi-chain liquid staking protocol that seeks to resolve the conflict between token liquidity and mainnet security in PoS consensus. Users have the opportunity to stake their PoS tokens through StaFi and receive rTokens in return. These rTokens are synthetic staking derivatives that represent the staked tokens and their corresponding staking rewards. They can be transferred and traded at any time, providing users with liquidity while still allowing them to earn staking rewards. StaFi's protocol is overseen by a decentralized autonomous organization (DAO), with input from the community and core team.

How does StaFi work?

StaFi operates through a staking pool protocol that manages user contributions, staking rewards, and withdrawals. Users stake their PoS tokens through staking contracts built in the StaFi protocol and receive rTokens in return. These rTokens, such as rETH, rMATIC, rATOM, rBNB, rSOL, etc., are tradable and can earn staking rewards from the original chain simultaneously. The staking entities, known as operators, manage a secure and stable infrastructure for running validator clients. This infrastructure includes high-availability servers, redundant networks, and robust security measures. By managing this infrastructure, staking entities help ensure the safety and reliability of validator nodes.

What are the potential use cases for StaFi?

StaFi provides a solution to the liquidity problem in PoS staking. Users have the opportunity to stake their PoS tokens without locking their assets or maintaining infrastructure, while participating in on-chain activities. The rTokens issued by StaFi can be used for trading, borrowing, or lending on various platforms. This allows users to earn staking rewards on their tokens without having to lock them up, providing them with more flexibility. They can also be used to provide liquidity to DeFi protocols and to create staking derivatives. As a result, rTokens are a valuable tool for users who want to participate in the staking market.

What is the history of StaFi?

StaFi was initially built on the Polkadot ecosystem using Substrate to construct the StaFi Chain, which provides staking through an appchain. Subsequently, StaFi Hub was developed to support staking in the COSMOS ecosystem. With the development of the EVM ecosystem, StaFi has launched a solution for EVM Compatible Chain. Currently, the StaFi Protocol supports multi-chain ecosystems such as Ethereum, Polygon, BSC, COSMOS, Solana, Polkadot, Kusama, etc. Ensuring security is a priority for StaFi, and it works with reputable security auditors to conduct regular security audits and has a security incident response plan in place.