With the quest for decentralized ecosystems in the crypto space, more blockchains are opting for the PoS consensus rather than its PoW counterpart. 

Hey, there’s nothing wrong with staking assets considering the deluge of benefits that comes with such. But, staking has its nemesis: the inability to access such valued assets should the need arise. 

This can affect the performance of platforms reliant on such a model, and the aftermath can be quite chaotic. 

Stafi protocol aims to resolve the liquidity struggles of blockchains that use a PoS consensus. But that’s not the focus in this piece. Here, I intend to dissect the role placed by the rTokens in this journey. The question now is, what are rTokens?

What Are rTokens?

rtokens are alternative tokens issued to owners of a certain amount of stake in the Stafi contract. You can consider them the cornerstone of the Stafi protocol. Stafi rectifies the liquidity issues rocking blockchains on the PoS consensus, but the actual goal-getters are rTokens. 

There would be no liquidity unlocking without the input of these virtual assets. What rTokens lack in an actual identity, they make up through their immense flexibility which is actualized via the Stafi protocol.

Are rTokens Undervalued?

rTokens are not issued by institutions. So volatility doesn’t come into the equation. This should minimize the manipulations of central control, making it more enticing for more users to seek out rTokens. 

With more interest in rTokens, trading these alternative assets generates a frenzy as the market for rTokens continue to expand. 

There’s also the massive potential for rTokens in debt collection. Considering the highly valuable nature of these assets, they can be used as collateral. 

rTokens are gradually emerging into their position in the scheme of things. With the staking contracts of the Stafi protocol all set, rTokens  will become even more valuable. From their primary role of helping stakers get maximum yield returns via a meticulous process made possible by the Stafi protocol to a more encompassing role. 

Can rTokens Be Traded?

The actual Stafi plan was to use rTokens in unlocking the liquidity occasioned by staking in a PoS consensus. Remember how stakers struggled with the unpalatable unbonding times, but rTokens will put an end to the situation. Yet, these alternative tokens are no longer just a means to an end; they’re taking center stage.

While rTokens were meant to be returned to claim the actual asset in the staking contract, these alternative tokens can be traded. As more people become holders of such alternative tokens from staking contracts, the need for trading these rTokens continues to grow and third-party platforms are gearing up for the challenge. 

With more staking platforms inculcating the plug & play in the Stafi protocol to unleash their locked liquidity, rTokens will be flexible and more tradable like any other cryptocurrency. This should work in favor of developers as they get a piece of the transaction fee. 

What the Future Holds For rTokens

Stafi protocol intends to normalize these alternative tokens. To make these alternative tokens part and parcel of the digital assets on-chain, then a superman status won’t help. Thus, the attempt by Stafi to standardize the use of these tokens for the unlocking of liquidity in staking contracts for the greater good. 

Final Thoughts

The liquidity chains holding back the potency of staking contracts can be broken through Stafi protocol. But the backbone of the protocol consists of rTokens. 

Without these alternative tokens, liquidity in staking contracts will likely remain trapped. Yet, very little attention has been given to the rToken. That’s an oversight Stafi protocol is rectifying. Expectations are high regarding the immense potential of these alternative tokens in the Stafi protocol. 

You can follow up to date information on StaFi by following their website https://m.stafi.io/