Facilitating the Creation and Use of Staking Derivatives by Stafi & Frontier
On July 27, 2020, Stafi and Frontier, a DeFi wallet solution reached a strategic cooperation. In the future, Frontier will integrate Stafi Staking Contracts, enabling users to obtain staking derivatives (rToken) more conveniently. Meanwhile, Frontier will also provide more choices of Staking on the strength of Stafi, including Non-custody Staking and Derivatives Staking.
rToken is a staking derivative and an alternative token for PoS tokens. It mainly has 3 benefits. One is that users can not only enjoy the benefits of staking, but also the liquidity of Staked assets. The second is that rToken has lifted the competition between Staking and DeFi, so that the users can enjoy the benefits of Staking while participating in the DeFi project to obtain benefits, such as lending with rToken as collateral. Third, rToken released a large number of Staked assets, which has pouring high-quality basic assets into DeFi world. To some extent, this alleviated the lack of asset value and types for DeFi. Data shows that assets locked in DeFi worths less than 8 billion U.S. dollars, and that number on the PoS chain is 9 billion U.S. dollars. If half of them can be released, there are various types of PoS assets, which worths about 4.5 billion U.S. dollars that will be released.
Frontier will be a significant portal for DeFi applications, integrating multiple DeFi services so that users will enjoy a uniformed access to DeFi services. In the future, users can manage their cryptos in a one-stop way, and select & switch between different DeFi services seamlessly. A portal like Frontier will undoubtedly make the Stafi protocol more scalable and also enable rToken to better integrate into the current DeFi ecosystem. In the days to come, users will be able to “exchange” PoS-type tokens into interest-bearing rTokens directly on the Frontier App so that they can enjoy staking rewards while trading at the same time. They will also be able to lend with rToken as collateral using DeFi protocol.
Both Stafi and Frontier spoke highly of this cooperation. Frontier starter Palash Jain said
Liquidity dilemma has always been an issue for retail users when staking an asset, the capital is locked, and un-bounding period is too long. Stafi Protocol solves this by introducing liquid staking, which removes the barrier, especially for the retail users to participate in staking, earn rewards and also at the same time, be liquid. We will be working closely with Stafi Team to introduce Native Liquid Staking in App, enabling users to stake assets via Stafi smart contracts seamlessly.
Through this cooperation, Frontier empowers Stafi to better reach DeFi users, and Stafi enables Frontier to realize staking derivatives services. Although Stafi and Frontier provide varied solutions in different scenarios and specify their own fields in the DeFi world, both are committed to making DeFi services more inclusive. Stafi improves the utility of users’ Staking assets, making users enjoy the dual benefits of Staking and DeFi at the same time, helping users better access DeFi. On the other hand, Frontier narrows the distance between users and DeFi services so that users can enjoy DeFi services with just one tap.
Frontier is a Mobile-First DeFi App which enables users to Track, View and Manage DeFi Positions seamlessly.Frontier’s Wallet composability feature enables users to connect popular wallets such as Coinbase Wallet, Trust Wallet, Metamask Mobile, imToken without having to import private keys or seed phrases.
Over 12,000 downloads and 4,000+ Daily users use Frontier as DeFi interface to track and manage positions.
Stafi is a decentralized protocol for Staking derivatives that aims at providing liquidity for Staking assets. Stafi provides rToken, a derivative, based on Staking Token, solving the liquidity issue of locked tokens. With Stafi, users can enjoy Staking earnings and liquidity at the same time. The holder of rToken will enjoy the rights of redemption and the yield of pegged Staking Token. In other words, Stafi releases the locked PoS tokens, pouring them into DeFi world in the form of rToken.
In the beginning of 2020, Stafi was invested by Web3 foundation. It rolled out the testnet Seiya on Jul 1. Up to now, there are more than 260 validator nodes on Sitara.