Liquid Staking Solution rKSM Has Been Live on Mainnet
Overview
After team testing, third-party technical consultant testing and CertiK audit, the StaFi team has launched rKSM App on the mainnet, a solution to unlock the liquidity of Kusama staking.
Now KSM holders could stake KSM tokens through the rKSM App. Not only can they obtain the maximized staking rewards, but also the rKSM tokens they get as the staking voucher can be freely transferred and traded on DEXes. Stakers can fully enjoy the real decentralized liquid staking.
rKSM Introduction
StaFi rKSM App is a decentralized DeFi product that unclocks the liquidity of the Kusama token KSM staking.
rKSM Token is a staking derivative of KSM issued by StaFi when users stake KSM through StaFi rKSM App. rKSM tokens are anchored to the staked KSM and the corresponding staking reward and they bring the flexibility to trade at any time while still receiving staking rewards. With rKSM App, KSM stakers could enjoy efficient liquidity and maximized staking rewards at the same time.
Why Use rKSM to Stake KSM
rKSM App can help KSM stakers to solve the following two problems:
1) There will be no need to wait for a long 7-day unbonding period to transfer or trade staked KSM assets. rKSM App users can transfer and trade the staking voucher rKSM token at any time on Uniswap to enjoy liquidity and hedge price risks.
2) There is no need to learn the complicated NPoS consensus mechanism of Kusama and staking reward calculation rules any more. With rKSM App, users only need a few simple steps to deposit KSM into the rKSM contract, which will automatically select the best validator by executing the staking reward maximization strategy algorithm.
Staking Reward Maximization Strategy
Now the estimated staking APY of KSM staking on rKSM App is around 16%, which is 2% more than the averaged staking APY of the whole Kusama network because of SRMS Algorithm:
1) Diversified Delegation
The KSM tokens deposited by the user will be distributed to several(N) mini staking pools. Parameter N will be set based on the scale of the total deposited funds. Each mini staking pool will then select several (M) best validators by executing the SRMS algorithm, so as to reduce the slashing occurrence probability from a single node.
2) Strictly Select Original Validators Candidates
In StaFi rKSM SRMS algorithm, it is very important to select the professional and high-quality validators to join as the Original Validators (OV), and ask them to set a reasonably low commission rate to provide higher APY for stakers. The rKSM App will monitor and evaluate the performance data of original validator candidates from the metrics including active rate, slashing record, self-bond ratio, node identity, commission ratio, etc., to ensure that excellent validators with relatively low commission are selected.
3) Original Validators Delegation Rules
Since Kusama adopts NPoS consensus mechanism, the staking income obtained by each elected node is the same in absolute amount. If two nodes are elected and one with more staked KSM, then stakers will get more rewards if they stake the other node (with less staked KSM).Therefore, each Mini Staking Contract Pool will follow this staking logic: rank all OVs by the number of staked KSM they obtained from low to high every 1Era (6H), and the top N OVs will be selected for nomination.
Note: The above-mentioned parameters M and N are all flexible.
Commission and Fees
The relevant commission and fee parameters in rKSM App are following:
1) Stake KSM
There is no commission but a service fee, called Relay Fee. The Relay fee is paid in StaFi mainnet FIS token(1.5 FIS for now) and for the related gas fee cost from the cross-chain bridge’s contract interaction between StaFi and Kusama .
2) Unbond KSM
Users need to pay a 0.2% redemption fee(based on how much rKSM tokens s/he wants to unbond) and 3 FIS for the Relay Fee.
3) Staking Reward Commission
10% of your net staking reward( your total staking reward minus validator commission).
The Circulation of rKSM Tokens
rKSM tokens can be freely transferred and traded. So users can swap rKSM tokens into ERC-20 format at 1:1 ratio through rBridge at any time, and then freely trade it on Uniswap.
Reference
rKSM App: https://app.stafi.io/rKSM/home
rKSM Guide for Users: https://docs.stafi.io/rtoken-app/rksm-solution/staker-guide
rKSM Q&A: https://docs.stafi.io/rtoken-app/rksm-solution/rksm-faq
rBridge Guide of rKSM: https://docs.stafi.io/rtoken-app/rksm-solution/the-rbridge-guide-of-rksm
About StaFi Protocol
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. FIS is the native token on StaFi Chain. FIS is required to provide security to the network by staking, pay for transaction fees on the StaFi chain, and mint & redeem rTokens.
Website: www.stafi.io
rFIS Product: https://rtoken.stafi.io/rfis
rETH Product: https://rtoken.stafi.io/reth
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