Hello and welcome to another edition of Wealth Mastery. Like last week, this week we won’t be venturing too far away from what’s happening in the Polkadot ecosystem. With staking being a key mechanism to not only a great ROI for early entries, but also what’s currently thought to be the most energy-efficient means of consensus. This week we’ll be looking at the “hottest and latest” staking as a service project called Stafi.
Introduction
Stafi (FIS) is short for staking finance and gives a clear representation of the project’s intent on providing a secured solution to address the conflict between the mainnet security and the token liquidity in the current staking model. To do this, the team at Stafi is developing a system that replaces computing power weight by token weight in BP (Block Producers) elections. Those selected will be responsible for the packing, verifying of transactions, and prolonging the chain. Allowing token holders to take part in the system consensus through staking. During the whole process, the token holders only have to run servers of certain standards or delegate to professional validators. This random election solves the problem of squandering computing power brought about by mining competitions. While at the same time, creating a new blockchain relationship with holders to make them miners and creating a new way to produce blocks in the public blockchain world. Making Stafi the first decentralized protocol to unlock liquidity of staked assets.
Stafi encompasses three layers to its decentralized protocol; the bottom, contract, and application layers. The bottom layer is mainly based on the established blockchain system Parity Substrate that we’ve talked about many times within the Polkadot ecosystem. The contract layer supports creating a variety of staking contracts, such as contracts for Tezos, Atom, and Polkadot . So the token holders stake through their staking contracts in Stafi is consistent with the inflation incentives obtained by the ordinary stake. But, the difference is that the holder also can obtain rTokens. Finally, the application layer supports third-party Stafi-based APIs or customized APIs to create a decentralized bonded asset trading market for rTokens to circulate, transfer, and trade on the Stafi protocol. Stafi uses a distributed key storage protocol to ensure the security of the stake address through multi-signatures. So the holder can initiate staking or redeem the staking rewards anytime and anywhere without the need for third-party intervention. When holders of the coin start the FIS token to the staking contract, the system’s inflation incentives are updated and can be obtained regularly. The Stafi protocol guarantees that each alternative rToken corresponds to the token on the original chain. Giving only the holder of the rTokens the ability to start redemption of the original token to the stake contract. Where any third-party can establish a decentralized bonded assets exchange using the Stafi protocol at the application layer.
The way it’s supposed to work is that the token holder obtains bonded assets of equal value to the tokens by staking in exchange for equal rTokens. For example, if a user stakes 1 KAVA, he will get rKAVA (reward KAVA) that is equal to the original token. The rKAVA represents regular yields of tokens and the ownership of KAVA on…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
