Hi readers!!
Finally, the long-anticipated StaFi's rMATIC is live, rMATIC is a token earned by users whenever they stake Polygon MATIC token through StaFi staking contract. The vision is to provide a liquidity solution to all PoS projects, making staking simpler and more flexible.
What is rMATIC?
rMATIC is a decentralized DeFi product developed by StaFi to solve the liquidity dilemma of staked MATIC on Ethereum mainnet. The token is a synthetic staking derivative allocated by StaFi to users whenever they stake MATIC through the StaFi rMATIC product. They are tokens anchored to the staked MATIC and the corresponding staking rewards, which can be exchanged/traded at any time.
When a user deposits MATIC into the rMATIC contract, StaFi will calculate the amount of rMATIC based on the current exchange rate between MATIC and rMATIC. Also, when a user holds rMATIC, StaFi will calculate the amount of redeemable MATIC based on the real-time staking reward of MATIC.
What is the purpose of rMATIC?
rMATIC empowers a wide range of solutions to the major problem faced by users when staking MATIC, some of the problems solved are:
Long Redemption Period
With the introduction of rMATIC, there will be no need for users to wait for 80 checkpoints, which is around 9 days, to withdraw the staked MATIC. Users can transfer and trade rMATIC tokens at any time to liberate liquidity and hedge price risks.
Learning of PoS consensus
Learning of highly complicated PoS consensus (based on Tendermint) mechanism or staking reward calculation rules if a user wants to maximize staking rewards could be unnecessary, with the rMATIC product, users only follow a few steps to deposit MATIC into the rMATIC contract, which will automatically select the best validator for delegation by the profit maximization strategy.
Liquidity
Being a Liquidity provider, there is no need for users to worry about the liquidity of staked MATIC. Users can trade rMATIC on Uniswap at any time.
Validators
The rMATIC contract integrates a strategy for maximizing staking rewards, which automatically selects a group of Original Validators with the highest rewards on the chain for staking.
Staking reward
The rMATIC contracts will automatically collect the staking rewards to restake. So stakers don’t need to withdraw the staking rewards manually and then restake to generate the compound interest like before.
Staking Strategies
Based on the PoS consensus mechanism(Tendermint Consensus Engine) of Heimdall Chain, the PoS layer of Polygon, and the influencing factors of staking rewards, the rMATIC product adopts the following staking rewards maximization strategy:
(i) Diversified delegation. The MATIC tokens deposited by the user will be distributed to several(N) mini staking pools. N will be based on the scale of the deposit. Each staking pool will then select several (M) validators for delegation by the profit maximization strategy, to reduce the slashing occurrence probability of a single node.
(ii) Strictly select Original Validators candidates. The rMATIC product will evaluate the performance data of original validator candidates from the metrics including online duration, slashing record, self-bond ratio, node identity, commission ratio, etc., to ensure that excellent validators with relatively low commission are selected.
(iii) An automatic delegation strategy that maximizes staking rewards. 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 Epoch, the system selects the best OVs for delegation while simultaneously reinvesting profits.
(iv) A strategy that minimizes the potential loss. When the system detects that the node is slashed or the online rate is lower than the standard, the rMATIC staking contract will automatically initiate the redelegate operation and re-select other qualified validators for delegation.
Stake MATIC earn rMATIC
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.
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