Stafi

StaFi is a combined abbreviation of Staking+Finance. It is a decentralized protocol built with the Substrate. The contract layer is composed of multiple staking contracts, and the application layer is mainly trading platform of rTokens.

The protocol of Stafi is created by Substrate and adopts Nominated Proof-of-Stake (NPoS), which complete Staking by setting up Staking Contracts in the upper layer to communicate with public chains. The Staking process is immune to Stafi’s contracts, for the latter act as the account book during Staking. Tokens staked through contracts will be written in the contracts and finally be locked-up on the original chain.

FIS is the native tokens of Stafi. FIS is involved in 3 scenarios: Gas, Staking and value capture.

- FIS is the fuel of the system. It prevents a large sum of spam popping up in the system. FIS charged will be distributed to validators and Protocol Treasury, and the distribution ratio can be adjusted by concerning parameters.

- Stafi adopts NPoS consensus and uses the underlying motivation design of Polkadot for reference. Based on security design, Stafi tunes up motivation curve in accordance of the Staking ratio of FIS in order to achieve the cyber security and long-term development of the system.

- FIS is a medium for the value capture in Stafi system (mainly provides value for the liquidity of rToken). The Staking Contracts of Stafi not only provides Staking service for Stakers, but also guarantee liquidity. Service fee will be charged by Stafi protocol from users to value to Stafi network. The proposition of value will be expounded in part 5 of this document.

rTokens (reward Token) are alternative tokens given to Staking token holders. Due to Staking tokens will be locked up on the original chain, and the lockup relations will be written to Staking Contracts, rTokens are the only authentication ticket manipulated by Staking contracts. Through rTokens, holders can alternate relations of the contracts, execute further Staking, redeem original tokens, etc. Meanwhile, by holding rTokens a user can obtain rewards from Staking tokens, which will be explained in part 4.

In a nutshell, Stafi protocol can be regarded as an underlying protocol for crypto assets. Through rTokens, the protocol can free Staking Tokens, backing them to the market. Stafi earns income from providing liquidity.