StaFi 2022 Q1 Roadmap — StaFiHub, rDEX and More
A Review of Q4
Throughout Q4 of 2021, StaFi Core has made great progress with regard to rToken’s liquidity. We’ve launched rSwap, updated the rPool function in order to incentivize more rToken trading pairs, rolled out MintType which optimizes the UI/UX of the rToken-mint, and so forth. All our efforts have been concentrated on building a more sophisticated rToken ecosystem.
We’ve not launched any new rToken this quarter, and that’s because after Q3, we are being more cautious in launching any new rToken (taking mainly the liquidity problem of rToken into consideration). We hope that the liquidity issue can be taken more seriously by more participants.
However, that doesn’t mean that we have stopped exploring new rTokens. We proposed the rAVAX solution to the Avalanche Foundation, and conducted in-depth research on rNERA. For the Cosmos-SDK based projects, StaFi proposed an all-around solution called StaFiHub. These research and exploration activities will bring long-term progress to the development of rToken.
In addition, StaFi Core proposed the rDEX solution in Q4 to solve the liquidity problem of rToken. In order to solve the cross-chain problem, rDEX will be built on the StaFi chain. At the same time, rDEX can collect the liquidity of all rTokens, to make the exchange deep enough for certain liquidity requirements. Currently, rDEX has been deployed on the testnet, and the audit is about to begin.
Of course, we have not forgotten that an open Staking Derivatives architecture is still the ultimate goal of StaFi Core. After the positioning of StaFiChain’s main objective with regards to serving the liquid staking solution of the top PoS tokens, the idea of building StaFiParachain and StaFiHub has emerged. These two new frameworks, which are compatible with rToken, will enhance the development, access, and adoption of rToken in the coming year.
At present, StaFihub has achieved the Q4 milestones as far as the development of the chain is concerned. The deployment of the rToken architecture is also in progress, which we’re sure will meet our followers’ requirements in the near future.
StaFi TVL (Total Staked Value) achieved significant growth in Q4, even breaching $120million. rFIS and rETH are still the two rTokens with the largest TVL, and rATOM, rBNB and rDOT have seen the largest growth. New mint incentive activities and LP incentive activities are also underway, to ensure the stability of the current TVL. Meanwhile, after the incentive, Redeem Value did not burst out and the stock of rToken has been relatively stable.
Unfortunately, our marketing work is still being criticized by the community. Some of our marketing activities have not received wide-ranging attention, and we really need to do some soul-searching. We are also hiring a Marketing Lead to help us achieve our mission. Feel free to contact us if you are interested in this role.
When we look back on the developments in the last quarter of 2021, we have made great breakthroughs in two key areas. One is the mint volume of rToken, and the other is the liquidity of rToken. Other than that, we’ve also made significant progress in rToken integration and rToken adoption.
In our understanding, only when Mint volume and liquidity increase simultaneously can the ecosystem be prosperous. In addition, these breakthroughs have been made possible since the threshold and time period for new rToken development were greatly lowered, which brings us into the development of the StaFi open architecture.
In 2022, StaFi Core will face more challenges regarding how to promote rToken liquidity and Mint volume, including developing an open multi-chain architecture, building the rDEX that facilitates the trading for all native rTokens, and creating a scenario that promotes the use of rToken by initiating theStaking Derivative Index, Leveraged staking, Lending protocol, etc. All constructions will be closely related to rTokens’ mint volume and liquidity.
rToken Mint Volume
The growth of Mint amount will be mainly placed in StaFihub, which provides a variety of rToken services for the Cosmos ecosystem. The rToken protocol implemented by StaFiHub mainly includes itself and the cross-chain bridge. StaFiHub’s rToken complies with the ICS-20 standard, which makes StaFiHub itself nearly perfect to meet all rToken expansion. Consequently, StaFiHub needs not be upgraded when a rToken is added. On the contrary, the cross-chain bridge needs corresponding development to support new rTokens.
Any developer can contribute to the StaFiHub rToken Ecosystem by developing the corresponding rTokens based on the General liquid staking solution SDK provided by the StaFi team. Developers only need to write SDK/code that meets the corresponding conditions, and the review and integration work will be completed by the StaFi team or DAO. This will greatly strengthen the scalability of StaFi rToken, speeding up the development of rToken at the same time.
The above is the technical architecture of the cross-chain bridge
- Every new rToken needs to add a ForeignChain SDK
- The current SDK needs to be implemented in Golang
- Each SDK needs to have the corresponding communication capabilities with the chain. The communication capabilities include (but are not limited to): GetLatestBlock, GetEventsByBlock, GetBalance, GetTransaction and SendTranscations. The listener of the SDK embodies the ability to read, and the writer embodies the ability to write.
- Each SDK communicates with Router through msg
- The EndPoints of each SDK need to be configurable
- There will be corresponding code samples shown above
The breakthrough of StaFi Chain mainly lies in the communication with PoS chains, such as rNEAR and rAVAX. After the technical issues and ecological support are all sorted out, we will accelerate the development of rToken, which will bring a lot of new Mint volume.
In addition, after Polkadot launched the first batch of parachains, many rules have become clearer, and it will become easier for us to promote StaFi to parachains. The exploration of the StaFi parachain will also be launched in 2022 Q1. This innovation will not be executed immediately. We will make a conclusion after full research, so stay tuned for more information.
At present, the liquidity of rToken is relatively scattered with different transaction pairs dispersed in different DEXes like Uniswap, Quickswap, Atrix, Pancake, etc. However, the current liquidity solutions mostly require rToken users to exchange for the Token standard of the target chain through rBridge before the transactions can be carried out. Moreover, high gas fees and certain inconvenient problems are involved. Considering that rToken-mint is mostly in StaFiChain, we are trying to build liquidity on StaFiChain. We’re also gathering the liquidity from each external chain to Native rTokens on StaFiChain, which is expected to achieve better results.
Therefore, our liquidity solution in Q1 next year will focus on rDEX. According to the feedback received from the community, the solution is conducive to the development of rToken and will also bring forth the utility scenarios of FIS. When the transaction volume focuses on StaFiChain instead of being scattered around, we believe that the result will be better.
In the days to come, we will continue our explorations. We believe that this approach is the foundation of any great crypto project. Looking back at 2021, StaFi has done a lot of explorations, whether it is Mint integration or StaFihub (that we mentioned above), or the liquidity solution of rSwap and rDEX. We still have a lot of room for exploration in the field of Staking Derivatives.
It is our exploratory nature that has helped StaFi grow into an open protocol with more than $120million TVL since the launch of the first rToken-rFIS in early 2021. In 2022, we have enough reasons to believe that StaFi will gradually become an underlying protocol for Staking Derivatives in DeFi space.
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.