PoS chains are dying. At least, that’s what most people think. Yet, the Proof-of-Stake consensus is the preferred choice due to its fewer shortcomings compared to a largely obsolete PoW alternative.
No matter how relevant PoS chains might be, they have one thing in common: a brewing liquidity catastrophe that’s just on the horizon. All that stake 'A' with an unstaking period of multiple days will be the death of these blockchains. Fortunately, the digital ledger comes with lots of heroes in codes. Staking Finance (StaFi) protocol is one of such.
StaFi provides PoS chains with a way out of their impending implosion through staking derivatives. These interest-bearing tokens will serve as liquidity outlets for holders of blockchain assets, eliminating the need to endure an unpleasant unstaking period to get staked assets back.
In addition to tackling the liquidity crisis of PoS chains, these synthetic staking derivatives will do a lot more – StaFi is arming them with lots of utilities.
At the moment, rTokens can be traded easily through relevant DEXs as liquidity has been added for the available trading pairs. For instance, you can trade rSOL on Serum, rBNB on PancakeSwap, rMATIC on Quickswap, and rETH on Uniswap.
There’s also the opportunity to use your rToken as collateral to borrow assets. StaFi’s partnership with Liqee, a lending market for interest-bound tokens, makes this possible. It’s a massive use case for synthetic staking derivatives.
rToken LP farming is another utility available for these interest-bearing tokens. With a handful of liquidity mining programs on the ground, it’s easy to put your rTokens to work towards earning a tidy sum. Of course, this will take place over an extended period.
rToken Farming Opportunities
StaFi has launched 7 rTokens since it began offering liquid staking solutions for PoS chains. Currently, not all the rTokens are supported for LP farming, but that will change in due time.
To partake in these rToken farming opportunities, you must have the relevant rToken and the corresponding pair. Sure, you can choose to sell off some rToken to create the LP.
rETH LP Farming on Curve
rETH holders can put their rToken to good use on Curve. You can create the rETH/ETH LP using the Curve swap, then proceed to add your LP tokens to the pool. If done correctly, you should see your contribution to the rETH/ETH pool. Your FIS earnings will accumulate over time. It’s a great chance to make passive income through LP farming. Also, the risk of impermanent loss is lower as rETH and ETH values are close enough.
Remember, you have to get your rETH by staking ETH on layer 2 using StaFi’s rAPP. Here’s a link on staking ETH using the rETH app.
rMATIC LP Farming on Quickswap
rToken farming opportunities are not limited to rETH alone. You can also add liquidity for rMATIC/wMATIC. You get to earn trading fees on transactions done on that pair. At the moment, it’s not so lucrative as there’s not enough traction on Quickswap.
rToken Farming on Liqee
Liqee might be a lending market protocol, but it provides rToken holders with a lucrative opportunity to earn passive rewards by putting their synthetic derivatives to good use.
On Liqee, you can lend your rETH token, racking up FIS and other rewards gradually.
StaFi’s rToken remains a treasurable asset with impressive earning potential. Though the interest-bound token offers an easy way out of a liquidity jam, you don’t have to sell off the synthetic staking derivative. The rToken's array of LP farming opportunities, collateral support, and others in the works solidify the staking derivative's place in the growth of the digital ledger.
For more information, visit these websites below:
rToken App: https://app.stafi.io
Telegram Chat: https://t.me/stafi_protocol
Telegram Announcements: https://t.me/stafi_ann