The First DOT Liquid Staking App rDOT is Live on Mainnet Now
Overview
After team testing, third-party technical consultant testing and CertiK audit, the StaFi team has launched rDOT App on the mainnet, a solution to unlock the liquidity of Polkadot staking.
Now DOT holders could stake DOT tokens through the rDOT App. Not only can they obtain the maximized staking rewards, but also the rDOT tokens they get as the staking voucher can be freely transferred and traded on DEXes. Stakers can fully enjoy the real decentralized liquidity staking.
rDOT Solution: https://docs.stafi.io/rtoken-app/rdot-solution
rDOT Introduction
StaFi rDOT App is a decentralized DeFi product that unclocks the liquidity of the Polkadot token DOT staking.
rDOT token is a staking derivative of DOT issued by StaFi when users stake DOT through StaFi rDOT App. rDOT tokens are anchored to the staked DOT and the corresponding staking reward and they bring the flexibility to trade at any time while still receiving staking rewards. With rDOT App, DOT stakers could enjoy efficient liquidity and maximized staking rewards at the same time.
Why Use rDOT to Stake DOT
rDOT App can help DOT stakers to solve the following two problems:
1.There will be no need to wait for a long 28-day unbonding period to transfer or trade staked DOT assets. rDOT App users can transfer and trade the staking voucher rDOT 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 Polkadot and staking reward calculation rules any more. With rDOT App, users only need a few simple steps to deposit DOT into the rDOT 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 DOT staking on rDOT App is around 14.9% by leveraging the SRMS Algorithm.
1.Diversified Delegation
The DOT 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 rDOT 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 rDOT 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 Polkadot 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 DOT, then stakers will get more rewards if they stake the other node (with less staked DOT).Therefore, each Mini Staking Contract Pool will follow this staking logic: rank all OVs by the number of staked DOT they obtained from low to high every 1Era (24H), 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 rDOT App are following:
1.Stake DOT
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 Polkadot.
2.Unbond DOT
Users need to pay a 0.2% redemption fee(based on how much rDOT 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).
Details:https://docs.stafi.io/rproduct/commission-and-fee-parameters-in-rbridge-and-rtoken
The Circulation of rDOT Tokens
rDOT tokens can be freely transferred and traded. So after the final release of rAsset App, users can swap rDOT tokens into ERC-20 format at 1:1 ratio through swapping function in rAsset at any time, and then freely trade it on Uniswap.
Reference
rDOT App: https://app.stafi.io/rDOT/type
rDOT Guide for Users: https://docs.stafi.io/rtoken-app/rdot-solution/rdot-staker-guide
rDOT FAQ: https://docs.stafi.io/rtoken-app/rdot-solution/rdot-faq
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
Twitter:@Stafi_Protocol
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