The StaFi team has released the rATOM App on mainnet, after multy-party testing. It's a solution to unlock the liquidty of Cosmos Staking Derivative.
ATOM holders can now stake ATOM tokens through the rATOM App. Not only can they obtain the maximized staking rewards, but also the rATOM tokens they get as the staking voucher can be freely transferred and traded on DEXes. Stakers can fully enjoy the real decentralized liquidity staking.
Introduction To rATOM
StaFi rATOM App is a decentralized DeFi product that unclocks the liquidity of the Cosmos token ATOM staking.
rATOM token is a staking derivative of ATOM issued by StaFi when users stake ATOM through StaFi rATOM App. rATOM tokens are anchored to the staked ATOM and the corresponding staking reward. rATOM will bring the flexibility to trade at any time while still receiving staking rewards. With rATOM App, ATOM stakers could enjoy efficient liquidity and maximized staking rewards at the same time.
Importance Of Using rATOM App to stake ATOM
rATOM App can help ATOM stakers to solve the following two problems:
1) There will be no need to wait for a long 21 day unbonding period to transfer or trade staked ATOM assets. rATOM App users can transfer and trade the staking voucher rATOM token at any time on Uniswap to enjoy liquidity and hedge price risks.
2) There is no need to learn the complicated Tendermint consensus mechanism of Cosmos and staking reward calculation rules any more. With rATOM App, users only need a few simple steps to deposit ATOM into the rATOM contract, which will automatically select the best validator by executing the Staking Reward Maximization strategy algorithm.
Staking Reward Maximization Strategy(SRMS Algorithm)
Now the estimated staking APY of ATOM staking on rATOM App is around 9.8% because of SRMS Algorithm:
1)Diversified delegation
The ATOM 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 rATOM 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 rATOM App will monitor and evaluate the performance 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) Automatically delegate to the OVs with highest staking APY
The solution monitors OV’s on-chain data in real-time, such as commission ratio changes, commission volume ranking, slashing, off-line rate, and other indicators. This ensures that in each Era, the system selects the best OVs for delegation while simultaneously reinvesting profits.
4) Minimizes the potential loss when the OVs get slashed
When the system detects that the node is slashed or the online rate is lower than the standard, the rATOM staking contract will automatically initiate the redelegate operation and re-select other qualified validators for delegation.
Commission and Fees
The relevant commission and fee parameters in rATOM App are following:
1) Stake ATOM: 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 Cosmos .
2) Unbond ATOM: Users need to pay a 0.2% redemption fee(based on how much rATOM 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).
The Circulation of rATOM tokens
rATOM tokens can be freely transferred and traded. So users can swap rATOM tokens into ERC-20 format at 1:1 ratio through rAsset App at any time, and then freely trade it on Uniswap.
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
Telegram Chat: https://t.me/stafi_protocol
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Forum: https://commonwealth.im/stafi
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