Equilibrium and DeFi protocol StaFi have teamed up to make their networks and assets more fully compatible with each other. Equilibrium will add StaFi’s rTokens to its lending platform, and StaFi’s staking platform will work with Equilibrium’s EQ token.
StaFi (short for “staking finance”) is a DeFi protocol aimed at unlocking the liquidity of staked assets — just like Equilibrium, it’s built on top of Polkadot technology. StaFi’s system design introduces a reward token called rToken, which is a tradeable, fungible, and yield-generating synthetic representation of a user’s staked assets.
Now users will be able to borrow more assets to stake to StaFi against rTokens, or they can lend rTokens out and earn yield on top of interest they get from staking. This works to bring more liquidity to StaFi and rTokens, and enhanced liquidity is a strong benchmark for projects that might consider integrating with Equilibrium.
This partnership unlocks the four following use cases:
EQ staking on StaFi
Equilibrium’s token generation event happened earlier this month and newly minted EQ tokens are available for claiming. Of course, you will be able to stake them on Equilibrium as soon as they will become transferable, but they will also work with a different Polkadot-based platform soon. The special about staking with StaFi is that users can get rTokens in exchange for locked EQ and maintain liquidity in their portfolio.
Lending out rTokens on Equilibrium
The more assets that Equilibrium’s money market can support, the better a money market it becomes. Users looking to harness their rToken holdings can earn passive income on it via pooled lending.
Staking rTokens to the Equilibrium bailout pool
Equilibrium users stake their assets to the bailout pool in order to protect system solvency. As the market moves and loans become undercollateralized, those loans can be bought out by bailsmen who supply the ecosystem with essential liquidity. Now they can use rTokens to do it.
Borrowing other assets against rTokens to stake more
When interest is lower than staking rewards, users may want to borrow other crypto assets against their rTokens holdings. This leaves them with more assets that they can stake to the system, increasing the size of their passive rewards.
So get your EQ tokens and rTokens ready — Equilibrium and StaFi are waiting to make those assets useful and interoperable, and they’ve got the liquidity to make it possible.