2023Q3 Roadmap — Building The Next Phase of LSD Infrastructure
Retrospective
The second quarter brought with it a series of challenges. The market has been volatile, collaborations have slowed, trading volumes have declined, and we’ve observed a certain level of inactivity within the community. Despite these hurdles, the StaFi community remains steadfast in its commitment to developing the next generation of LSD infrastructure.
Our accomplishments in Q2 are testament to this resilience. Key developments include the release of an updated StaFi tokenomics model, the proposal of integrations with ICS and DVT, and the advancement of EVM LSDs, namely rBNB and rMATIC. Furthermore, we’ve successfully launched mobile compatibility for our StaFi rToken App and deepened our involvement in LSDFi.
In a bid to maintain transparency and dominance across our peers, even amidst market downturns, we’ve increased our efforts to communicate with our community. We are consistently sharing more technical information, infographics, and explanatory content through various channels. Our newly launched DAO Governance Forum is set to host more discussions, fostering a transparent environment where everyone can participate and understand the strides we are making at StaFi.
Looking ahead
The evolution of LSD infrastructure is progressing subtly, as evidenced by the increasing total value locked (TVL) in LSDFi and the engaging discussions surrounding LSD projects. While the potential for growth in Ethereum staking remains enticing, the rising demand for LSD in other Layer 1 solutions cannot be overlooked. Attention must also be accorded to future LSD structures.
As the adoption of Proof-of-Stake (PoS) consensus becomes more prevalent, a critical question has surfaced among LSD developers: how can LSD providers or protocols ensure sustainability? StaFi consistently keeps a close eye on structural developments and explores potential solutions. Indications of progress in this direction can be seen in the StaFi Tokenomics Upgrade Proposal.
In the long run, the goal is to build a LSD infrastructure that is not only sustainable but also scalable, composable, and interoperable. We believe that such a structure will become the norm and possibly even a defining feature in the future. This vision has guided StaFi’s mission since 2022.
Specifications
In 2023Q3, StaFi will keep pushing more discussion and deployment in the aspects of LSD structure, decentralized staking, governance right distribution and more uptrends that related to the LSDs. With the coming upgrade of rBNB and rMATIC, EVM LSD structure becomes mature, to further development, advance abstraction will be executed thoroughly. Together with and Cosmos LSD structure, those two LSD solutions will be the major feature in the first stage.
In Q3 2023, StaFi plans to foster more conversations and drive advancements in areas such as LSD structure, decentralized staking, the distribution of governance rights, and other emerging trends associated with LSDs. With the impending upgrades to rBNB and rMATIC, the EVM LSD structure on StaFiChain is set to reach a higher level of maturity. To further this development, advanced abstraction methods will be thoroughly implemented.
Alongside the Cosmos LSD structure (StaFiHub), these two LSD solutions will be the focal points in the initial phase. Together, they represent significant strides towards a more robust and efficient LSD infrastructure.
EVM LSD Structure
The EVM LSD structure is currently under development, with parts of the previous codebase being abstracted to form the rBNB and rMATIC solutions. We have achieved more than 50% generalization so far. However, our aim is to reach a minimum of 80% generalization, indicating that further discussions and research are necessary, requiring more time to complete. This structure will be based on the redevelopment and redeployment of existing LSD solutions and will serve as the foundation for exploring more use cases in the future.
Cosmos LSD Structure
A proposal has been submitted to the StaFi DAO forum to discuss the integration of ICS on StaFiHub. However, further deliberation is required given that the first consumer chain on Cosmos has only recently gone live. Hosting such discussions may reveal potential challenges with the integration, thereby guiding the next steps for StaFiHub.
Another possible strategy involves deploying the solution on Neutron, a permissionless platform compared to ICS. From a technological standpoint, deployment on a Coswasm platform is feasible, although this would likely necessitate the abandonment of the current StaFiHub stacks. This alternative avenue requires additional research.
Regardless of the chosen path, all options are aimed at establishing a more secure structure for CosmosSDK-based LSDs. We anticipate significant progress in this regard during Q3.
ETH LSD Upgrades
rETH has thoroughly explored the ETH LSD landscape, continually updating its stack to keep pace with Ethereum’s emerging trends. We’ve already witnessed the implementation of withdrawal functionality and are looking forward to the imminent DVT integration and the introduction of more staking options.
In addition, improving the rETH stack could potentially facilitate the decentralized staking of Ethereum, a development that could significantly bolster the LSD industry.
More details on this will be announced in due time.
Summary
The landscape of the LSD industry has greatly evolved since 2020. It has gained popularity and addressed gaps in knowledge and understanding. The role of LSD providers is no longer confined to delivering a single LSD solution; rather, a cross-chain protocol that can provide a universal structure is expected to take precedence in the future.
At StaFi, we envision a restructuring of the StaFi Stack to enhance its scalability to accommodate future growth. This aligns with the vision outlined in the Tokenomic proposal in our forum. We are highly motivated to build a robust, long-term LSD structure, and that will be our primary focus in Q3.
About StaFi
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. rToken is a synthetic staking derivative issued by StaFi to users when users stake PoS tokens through StaFi rToken App . rTokens are anchored to the PoS tokens staked by users and the corresponding staking rewards. rTokens can be transferred and traded at any time.
