StaFi Partners with EasyFi to introduce Staked Derivative Assets Money Markets on Layer 2 DeFi
EasyFi Launches “Derivative Asset Lending” with rTokens as collaterals
- StaFi & EasyFi have partnered to make rTokens accessible on the EasyFi lending platform as collaterals.
- Collateralized rTokens from StaFi on EasyFi will allow users to lend & borrow staked derivative assets on the EasyFi platform — Hence enhancing liquidity further in DeFi.
- This will open up new avenues of yield generation for EasyFi users and also allow them to borrow stablecoins from EasyFi’s borrow markets.
- EasyFi Network, is the first lending protocol on any Layer 2 network to list staking derivatives of staked assets as collaterals.
- This partnership is Stage 2.0 of the #DoMoreWithDeFi vision of EasyFi Network, to continuously work towards maximizing the utility of crypto and other digital assets through our platform.
We are very excited to announce our partnership with StaFi, the first DeFi protocol for unlocking liquidity of staked assets. This collaboration will initiate new collateral markets on the EasyFi lending protocol with the inclusion of multiple rTokens e.g. rFIS, rETH, rATOM and others as collaterals.
Introducing these new assets on EasyFi lending, will add immense value to the Layer 2 DeFi community. Having rTokens as collateral on EasyFi Network opens the door to new streams of liquidity and will help unlock the true potential of staked derivatives assets on layer 2 money markets.
With this integration, EasyFi Network, becomes the first lending protocol on Matic Network and on any Layer 2 network to list staking derivatives of staked assets as collaterals.
What are rTokens?
rTokens are derivative tokens that are received by users on staking PoS (Proof of Stake) tokens on StaFi smart contracts. For every POS token staked, users receive an equal amount of rToken in return, e.g. rXTZ represents staked XTZ. A rToken allows users to receive staking rewards as well as access its liquidity through trading. They can also redeem the corresponding amount of staked tokens at any point in time.
What is EasyFi doing in this mix?
EasyFi has extended its #DoMoreWithDeFi initiative by introducing staked derivative assets money markets on EasyFi Network’s Layer 2 DeFi Lending protocol.
Here is a summary of what we are planning to do in Stage 2.0 of #DoMoreWithDeFi:
- rTokens minted on the StaFi network will be listed on the supply markets of Protocol V1. https://app.easyfi.network/#/lending/dashboard
- rToken holders can then supply them into the corresponding token markets and earn yield on the same.
- On supplying the rTokens, the users are eligible to borrow from the stablecoin markets on EasyFi.
Understanding Liquid Staking
Liquid Staking primarily refers to the tokenization of staking in some form. Lets us understand it in the following way:
- The Proof of Stake consensus requires users to commit their digital assets for earning rewards for securing an underlying network.
- Most of these protocols have long waiting periods before users can withdraw their staked assets
- This renders the assets unusable in other better yield generating opportunities; in order to access such other programs, the user will have to withdraw the asset and then commit to the other staking program.
- The DeFi space has opened up this locked-up liquidity by tokenizing these staked assets, in the form of staked derivatives.
- This staked derivative can then be integrated with other protocols for other forms of yield — e.g. a collateral for lending — thus making staked assets — liquid.
- The owners of these staked derivatives can manage their positions in a non-custodial and more flexible manner.
- It’s like you earning your staking rewards, while also enjoying other benefits by using your staked token derivatives elsewhere.
StaFi & EasyFi
Speaking on the occasion of this partnership, Ankitt Gaur, Founder & CEO, EasyFi Network said: “We are very happy to partner with StaFi and bring their rToken as new collaterals to EasyFi lending platform. We are absolutely confident that our collaboration will help unleash the true potential of staked assets through our new staked derivative asset markets.”
Also commenting on this integration, Young Liam, Founder, StaFi stated: “We hope to work with Easyfi on bringing the brand-new reward-generating asset rToken into Easyfi ecosystem, and enabling users holding any of these reward generating tokens to be used as collateral to take loans on easyfi. We will see the great synergies between Easyfi and StaFi in the near future.”
StaFi is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through StaFi and receive rTokens in return, which are available for trading, while still earning staking rewards.Now StaFi has successfully launched 2-way rBridge, rFIS and rETH products, and will release rDOT/rKSM, rXTZ and rATOM in the near future.
To learn more about $EASY and EasyFi, please go through our whitepaper and other articles on this publication.