StaFi is a DeFi protocol that unlocks liquidity of staked assets. Users can stake PoS tokens (E.g. DOT, FIS etc) through StaFi Staking Contracts and receive rTokens (E.g. rDOT, rFIS etc.) in return, which are available for trading to hedge against market volatility, while still earning staking rewards.
FIS is StaFi Protocol’s native utility token and is used for the following functions:
- Staking: Validators in StaFi consensus need to stake FIS to join the consensus network, and the nominators need to stake FIS to participate.
- Transaction Fees: In order to avoid system abuse, the initiator of a transaction has to pay FIS to access computing resources. In this way, invalid transactions will be eradicated, similar to how other Polkadot chains function.
- On-chain Governance: FIS holders can participate in changing of StaFi Protocol parameters, vote for protocol upgrades and determine development courses. Anyone can hand in proposals to the protocol, but only holders of FIS can vote for or against a proposal, 1 FIS account for 1 ballot.
- Value Capture: Majority of StaFi Protocol’s platform fees (Transaction fees and Liquidity Fees) will be used to fund the buy-back and burning of FIS tokens. The distribution of StaFi’s earnings may change based on Governance decisions.
StaFi unlocks the liquidity of staked assets via staking contracts. The protocol consists of the following major components working in conjunction:
- rTokens: An rToken is a derivative asset issued by StaFi based on staking tokens. Holding rTokens means that you can apply for redemption of native staking tokens at any time. It also means that holders of rTokens have the right to the yields of staking tokens.
- Staking Contracts: A set of code containing core functions of StaFi such as pledging, redemption, and transaction. It also records the mapping relationship between rTokens and underlying staking tokens. The role of staking contracts in StaFi is similar to CDP contracts in MakerDAO.
- Multi-sign Account: The interim account that StaFi uses to manage staking tokens and participate in staking.
- StaFi Special Validator (SSV): SSVs are different from SV, in that SSVs are responsible for managing multi-signature accounts and validating the original chain transaction status. They use multi-signature transactions to handle staking tokens in the account.
StaFi raised ~990K USD from 4 rounds of token sales:
- 5.71% of the FIS total token supply sold at 0.065 USD / FIS
- 2.44% of the FIS total token supply sold at 0.082 USD / FIS
- 3.64% of the FIS total token supply sold at 0.085 USD / FIS
- 0.85% of the FIS total token supply sold at 0.13 USD / FIS
As of March 3rd 2021, the total supply of FIS is 104,520,800 and the current circulating supply is ~21.2%.