What Is StaFi (FIS)?
FIS is the native token of StaFi, which is a multi-chain DeFi protocol that runs as Polkadot’s parachain. Make sure to check the StaFi price chart if you’re interested in seeing the current FIS price.
The StaFi crypto project allows users to liquify their staked assets. By doing that, it aims to transform the way Proof-of-Stake (PoS) works, making it more profitable and accessible for all users. Since the protocol is multi-chain, it can be applied to Ethereum, EOS, NEO, and many other blockchains. The name of the protocol comes from a combination of two words: “Staking” and “Finance”.
Overall, StaFi provides a secure solution to resolve the conflict between the security of the main network and the liquidity of the tokens. By utilizing StaFi, a staker can unlock the full potential of staked assets through the innovative rToken (short for “reward-Token”) system.
What Are rTokens?
rTokens are given to stakers as an alternative to their staked tokens. Once the staked tokens are locked on the original chain, the details about the lockup are defined in a staking contract. The only thing that can alter Staking Contracts is rTokens. They can be used to carry out additional staking, redeem the initial tokens, change contractual relations, and so on. The main advantage of rTokens is that they can be traded, while still generating staking rewards from the underlying asset.
To illustrate, if a user stakes 1 ETH (or another coin), he will obtain 1 rETH as an equivalent of the original coin. rETH represents the ownership of ETH on the original chain. Meanwhile, rETH can be traded on the bonded assets market using the StaFi protocol. Thus, while staked ETH is locked on the original chain and continues generating returns, rETH can still be traded. Overall, holders of rETH don’t have to bear the volatility risk and continuously assess market conditions.
Besides that, rTokens can also be used on derivatives protocols, on lending platforms as collateral, or as insurance against slashing loss.
The Structure of StaFi
The StaFi protocol consists of the bottom layer, the contract layer, and the application layer. Since StaFi is Polkadot’s parachain, it is built on Substrate, which is a blockchain SDK. The bottom layer is based directly on Substrate and acts as the base for the protocol. The contract layer is the place where all staking contracts are created. The application layer allows for the actual usage of rTokens by supporting third-party StaFi-based APIs that create bonded asset trading markets.
The Purpose of FIS Tokens
FIS token is the governance and utility token of the StaFi protocol. To see the live FIS price, take a look at its price chart above. Overall, StaFi tokens have four main use cases:
- Governance. StaFi token holders are able to vote on various decisions considering the future development of the StaFi crypto project.
- Staking. FIS tokens are staked in order to secure the StaFi network. Besides, FIS token stakers also receive rewards.
- rToken minting. FIS coins are required while creating new rTokens.
- Payment method. FIS is used to cover transaction costs or any other payments within the platform.
Are you planning to invest in StaFi coins? Before doing that, make sure to check out the aforementioned StaFi price chart. It’s important to do that since the FIS price, just like the prices of most crypto assets, tends to fluctuate. Thus, analyzing the chart will help you determine the main changes in FIS value over time.
The Founders of StaFi
Liam Young and Tore Zhang are the co-founders of StaFi. Liam has general experience in the staking business, as well as product management and development. Besides, he wrote a book named “Mastering Proof of Stake”. Tore, on the other hand, is a software engineer with experience in blockchain development.
Together, Liam and Tore run a small team of engineers working on the StaFi protocol. They managed to raise more than half a million US dollars from multiple investors who were interested in StaFi's mission of making staking accessible for everyone while at the same time retaining asset liquidity.
