We’re excited to announce that participants in the Elrond Proof of Stake economy will get access to liquidity for their staked collateral via integration with Stafi Protocol. Staking-Finance is a novel DeFi protocol type that makes it possible to use the value locked for staking in DeFi scenarios.
“The addition of liquidity options for Elrond staking will attract more sophisticated participants to the Elrond economy. This in turn will lead to more value locked into it, resulting in increased security and stability for our network. We’re happy to explore this avenue together with Stafi” said Beniamin Mincu, Elrond CEO.
The Stafi team are developing a decentralized network for staking smart contracts that can further be linked to proof of stake blockchains, such as Elrond. Instead of staking natively on Elrond, a participant can choose to stake through the Stafi blockchain, and immediately receive rTokens, proportional to the amount of eGLD staked.
The resulting reGLD tokens are pegged 1:1 in value with eGLD and will be tradable or usable in DeFi scenarios i.e. for collateralizing a loan. The staked eGLD can be redeemed by the respective token owner, together with the accrued rewards.
“Elrond’s unique token model and staking economy is likely to make their blockchain a success with PoS & DeFi investors alike. We’re excited to collaborate on integrating our protocol and provide such an attractive option for Stafi protocol users” said Liam Young, Stafi Founder.
The collaboration with Stafi protocol adds liquidity options for those interested to participate in Elrond’s Proof of Stake economy, which can further drive demand for staking and lead to an increase in our mainnet’s security.
Elrond is a new blockchain architecture, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 10,000 transactions per second (TPS), with 5-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
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.