Stafi Coin Price & Market Data
Stafi price today is $1.52 with a 24-hour trading volume of $21,434,351. FIS price is down -0.9% in the last 24 hours. It has a circulating supply of 27 Million FIS coins and a total supply of 102 Million. If you are looking to buy or sell Stafi, Binance is currently the most active exchange.
What is StaFi (FIS)?
FIS is the governance token for the StaFi protocol. Other than that, FIS secures the StaFi ecosystem through staking. FIS is also used to cover transaction fees on the protocol and to mint rTokens.
What is StaFi Protocol?
StaFi, short for Staking Finance, is the first DeFi protocol that unlocks liquidity of staked assets. Users can stake their PoS (Proof-of-Stake) tokens and receive equivalent amounts of rTokens (reward tokens). Users can trade these rTokens on decentralized exchanges, on top of earning staking rewards.
What is Proof-of-Stake?
There are two consensus mechanisms, Proof-of-Work (PoW) and Proof-of-Stake (PoS).
Proof-of-Work is an algorithm that rewards the first person that solves a computational problem (i.e. mining) to achieve distributed consensus. Miners compete to solve challenging cryptographic puzzles to add the next block on the blockchain.
On the other hand, Proof-of-Stake is designed to address the massive energy consumption in PoW. The PoS consensus algorithm elects block validators to sign blocks based on the percentage of tokens staked.
How does StaFi Work?
StaFi is made up of three layers: the bottom, contract, and application layer.
The bottom layer is predominantly built with Substrate’s blockchain framework. The Substrate framework encompasses component technologies such as P2P networks, consensus algorithms, and staking functions.
The contract layer allows for the creation of staking contracts for various assets such as Tezos, Cosmos, and Polkadot. Like usual staking protocols, stakers of these tokens will be rewarded with incentives on staking. However, StaFi unlocks liquidity by minting an equivalent amount of rTokens associated with the tokens initially staked.
The third and last layer, 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.
The StaFi protocol is decentralized and is connected to Polkadot as a parallel chain. In other words, StaFi shares Polkadot’s underlying consensus. Polkadot also ensures the main security and performance of the whole system.
What are rTokens?
rTokens (reward-tokens) empowers liquidity. For example, stakers of PoS tokens such as ADA and XTZ will receive rADA and rXTZ in a 1:1 ratio. Holders of rADA and rXTZ can then trade these rTokens, or lend these on other DeFi platforms.
Some use cases of rTokens include:
Staking rewards distribution - rToken holders receive the staking rewards 1:1 to the original token.
Trading - rTokens can be traded on StaFi and other exchange.
Lending - rTokens can be used as collateral on lending platforms to borrow ETH or USDT.
Derivatives - StaFi aims to allow rTokens to be used on derivatives protocols such as Opyn or Hegic. This will open up the options market for users to hedge against price fluctuations.
Insurance - StaFi will explore insurance services for rTokens original validators to insure against the slashing loss
Redemption of the Staking Token - only rToken holders can unlock the original token
How many rTokens are supported on StaFi?
StaFi currently supports two products, rETH and rFIS.
StaFi is planning to support more PoS tokens in its protocol, with rDOT, rKSM, rXTZ, and rATOM coming soon.
How to access these products?
For rETH, users would require a Metamask wallet as rETH is on the Ethereum blockchain.
For rFIS, users would need to install the Polkadotjs extension to stake FIS.