2023Q4 Roadmap — Decentralizing StaFi and Layer1 Staking
Retrospective
StaFi Protocol’s achievements in Q2 were outstanding by consistently strengthening its LSD narratives through continuous integrations. Pioneering technologies were developed within StaFi to decentralize the staking of Layer1s. Notable examples include the Cosmos LSM (liquid staking model), Ethereum DVT (highlighted by the SSV & Obol milestones), Chainlink’s CCIP (focusing on Interoperability), and Tidal’s Slash Insurance Protection.
Furthermore, several public proposals are currently under discussion, encompassing topics like Cosmos ICS, Neutron integration, Smart Delegation Algorithm V2, and research into MEV/ZKPs. Many of these initiatives are already in progress, with a strong push by StaFi to launch and bolster a more secure protocol for LSDs by Q3. Additionally, StaFi remains committed to standardizing the infrastructure for its LSD integration.
Token2049
In September, StaFi Protocol participated in Token2049 held in Singapore with the primary objective of re-establishing connections with LSDFi projects, including notable names like Kyber, Pendle, SSV, Obol, and Timeswap. The main goal was to explore further possibilities for rToken adoptions. This participation led to significant recognition for StaFi in Singapore, laying the foundation for more extensive collaborations. While the event itself didn’t introduce any groundbreaking revelations, the potential for future LSD adoptions became evident after engaging with various projects.
On the same page, while StaFi’s current slice of the pie may only represent a small portion of the overall cake, the market is undeniably expanding at a rapid pace. StaFi Protocol should remain steadfast in its collaborations, especially with innovative builders during these bearish times, to drive the mass adoption of LSDs in Layer1s.
Decentralization remains a focal discussion point. With the increasing emphasis on decentralizing staking, it’s imperative for the LSD industry to continuously revisit this topic. StaFi Protocol is well-positioned to champion this cause, dedicating its efforts towards the decentralization of staking.
The emergence of new Layer1s, cutting-edge technologies, and evolving trends in DeFi all point towards a promising future for LSDs. This momentum is what fuels the optimism for an LSDFi summer. As the market evolves, narratives shift, and potential challengers to platforms like Ethereum arise, StaFi remains vigilant, ensuring it stays abreast of the latest developments and remains deeply integrated with Layer1 and its associated ecosystems.
The Singapore Token2049 event served as a reflective platform for StaFi, offering not just a snapshot of the current market landscape but also reinforcing StaFi’s commitment to LSD development. Feedback and requests from various Layer1 teams regarding LSD’s have led to two pivotal conclusions:
- LSD’s stands as one of the three primary use cases in DeFi, alongside DEXes and Lending.
- LSD’s, while promising, is still in its infancy.
These insights underscore the immense potential and influence of StaFi Protocol in the DeFi space.
Looking ahead
As a leading multichain LSD service provider, StaFi Protocol is at the forefront of advancing LSD development. Our team is deeply dedicated to decentralizing staking, with a particular emphasis on Ethereum Staking. With its ongoing developments, StaFi Protocol is poised to offer solutions that are not only more secure and robust but also swiftly launched, seamlessly integrated with DeFi, and easily deployable. The anticipated upgrade in Q4 is set to further amplify this narrative.
1. StaFi DAO and Tokenomics
Q4 promises to be a pivotal period for the StaFi Protocol community. During this time, the focus will be on establishing a DAO, empowering community members with voting rights to shape the direction of the StaFi Protocol. Within the StaFi ecosystem, various LSD apps operate, and DAO members will assume the role of guardians, ensuring the security and integrity of these apps.
The StaFi DAO isn’t a new initiative; it has been operational for several months. The foundation for the DAO was laid out in community forums, where the early core team of StaFi Protocol drafted its guiding principles. These principles have been in execution for some time, and community members have emerged as a driving force steering the DAO’s direction. All developments and decisions related to the DAO will be transparent and accessible to the entire community throughout Q4 and into the first quarter of 2024.
In parallel, discussions are underway regarding potential modifications to the FIS tokenomics. Key considerations include defining the eligibility criteria for voters and outlining the benefits FIS holders will receive from their voting rights. Additionally, there will be a concerted effort to strategize on ensuring the long-term sustainability of the StaFi DAO.
2. StaFi Appchains
Currently, StaFi Protocol operates two appchains: StaFiChain and StaFiHub. Previously, there was a proposal to transition StaFiHub to either adopt the ICS or to be deployed onto a consumer chain (Neutron) within the Cosmos ecosystem. This move aims to ensure that LSDs issued on StaFiHub benefit from a more robust security model. If this integration is successful, the StaFiHub appchain will cease to exist and be replaced by a Dapp instead.
As for StaFiChain, it originally served as StaFi Protocol’s primary hub for issuing LSDs for Layer1s. However, with recent tokenomic changes, it has evolved into an independent chain. Consequently, most LSDs have been decoupled from StaFiChain and migrated to their respective native chains. Currently, only rFIS, rDOT, rKSM, and rSOL issuance remain on StaFiChain.
Given the dynamic nature of projects, rTokens may potentially be listed or delisted in the future. StaFi developers are re-evaluating the feasibility of enhancing the security model of StaFiChain. While such a transition would represent a significant shift for StaFi, it promises enhanced security. Ultimately, the decision will rest with the community, and extensive discussions are anticipated on the DAO forum.
3. Decentralize Ethereum Staking
Decentralizing Ethereum staking has become a trending topic within the Ethereum community. Notably, Lido currently accounts for over 30% of the staking, with projections indicating a potential increase to 50% and more . As emphasized by Ethereum’s co-founder, Vitalik Buterin, the urgency to decentralize Ethereum staking is palpable.
StaFi’s rETH is specifically designed to address this need of decentralization. In its present configuration, rETH allows stakers and validators to be matched permissionlessly. With the integration of Distributed Validator Technology (DVT), rETH aims to incorporate a broader range of validators into Ethereum staking. Additionally, StaFi has rolled out incentives to promote the adoption of rETH within LSDFi, further diversifying Ethereum staking.
StaFi is relentlessly exploring and implementing decentralization technologies. As these initiatives transition from conceptual stages to tangible implementations, they represent some of the primary changes anticipated for Q4. It will be intriguing to observe the subsequent steps StaFi undertakes in this direction.
Builder Wins All
The phrase “builder wins all” perfectly captures the essence of what StaFi observed at Token2049. While there were noticeable gaps in the Singapore event, genuine builders and their projects consistently charted paths towards success. Engaging with numerous co-founders provided StaFi Protocol with more than just networking opportunities; it reinforced and strengthened the organization’s core beliefs and convictions.
About StaFi
StaFi protocol is the first liquid staking protocol for multiple POS blockchains. StaFi aims to solve the contradiction between Mainnet security and token liquidity in PoS consensus.
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.
To date, the platform has released up to 10 various liquid staking solutions including rETH (StaFi Staked ETH), rMATIC, rBNB, rATOM, among others.
