StakingDrop Starts Supporting Matic Staking
On July 18, 2020, Stafi and Matic — a project that specializes in the extension of Ethereum sidechains — reached a strategic cooperation, where Stafi will support Matic Token in the StakingDrop campaigns. This partnership will help Matic further increase the staking rate and improve the bonding among the community members. In the future, Stafi and Matic will carry out deeper cooperation.
Ethereum is still the most important platform for DeFi applications; but the scalability and user experience of Ethereum limit the development of DeFi. The “3.12 Black Thursday” incident fully demonstrated the limitations of Ethereum.
During the coronavirus pandemic, the value of crypto had plunged, triggering the liquidation mechanism of various lending contracts. What’s worse is that these happened one after another, causing a liquidating avalanche. During that period, the shortcomings of Ethereum congested network transactions, which led to a graver crisis because risks cannot be digested. Unfortunately, some assets that would have not been liquidated were lost forever. In a nutshell, the performance bottleneck of Ethereum acted as a risk-amplifier for DeFi projects. And it can happen again!
Matic Network is an extension solution on Layer 2, which enhances scalability by using off-chain calculations of sidechains. Matic uses the Plasma framework and a decentralized proof-of-stake (PoS) validator network to ensure asset security. Matic improves network scalability and usability, allowing DeFi application developers on Ethereum to deploy contracts on a higher-performance Ethereum sidechain, which interacts with the Ethereum main chain through a “checkpoint” mechanism to guarantee finality.
The role Stafi will play in DeFi applications is through its rToken. The rToken is a Staking derivative and can act as a basic asset. Holders of rTokens will also own the redemption and income rights of staking tokens. When the original token is Staked in the network, the rToken will replace it in circulation. This will remove both the competition between Staking and DeFi, and the problem of lack of total asset value and asset types in the field of DeFi. For DeFi projects, rToken is a much better choice than native PoS tokens.
What Stafi and Matic are striving for is to make DeFi more prosperous in an effective way.
This cooperation takes shape through the StakingDrop campaign.
StakingDrop is a unique token airdrop method created by Stafi. Simply put, as long as users Stake their PoS tokens (such as XTZ, Atom, Matic, and so on) in the network for a certain period of time, they can submit a proof to Stafi and enjoy the FIS (the native token of Stafi) airdrop.
Stafi will allow Matic’s stakers to claim FIS rewards. Through this airdrop, Matic can encourage token holders who have never tried staking earlier to give it a try. We believe that the staking rate will greatly increase and the network will be much safer through this initiative. In the future, Matic’s Staking contract will be deployed by Stafi to support Liquid Staking of Matic, consolidating the security of Matic for good.
Matic is paving the way to India’s blockchain communities for Stafi. As a local flagship blockchain project in India, Matic has been helping with the development of other Indian blockchain projects too. It is renowned and deeply trusted by Indian blockchain players. Through this collaboration, Stafi will build an Indian community and earn further recognition.
In the future, Stafi and Matic will further deepen their cooperation, by jointly building a cross-chain bridge, introducing rToken in Matic network, swiftly supporting liquid staking for Matic, and so forth.
Matic Network is an expansion solution on Layer 2 of Ethereum. It achieves asset security and scalability through off-line calculation conducted on sidechains and decentralized PoS validators. Matic will deploy and operate a DApp for developers.
Matic has recently released their mainnet in Jun 2020. Before that, Matic has made quite a few partners in the DApp and DeFi world.
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, mint & redeem rTokens.