Stafi (FIS)
Stafi, short for Staking Finance, is a decentralized finance (DeFi) protocol designed to enhance the liquidity of staked assets. This protocol addresses the challenge of maintaining token liquidity while ensuring the security of mainnets. It does so by issuing ABT tokens, which provide liquidity for staking assets. These tokens can be traded and serve as collateral to redeem staking assets from original blockchains such as Tezos, Cosmos, and Polkadot.
Overview of the Stafi protocol
Stafi is a decentralized protocol built on Substrate, comprising three main layers: bottom, contract, and application. The bottom layer is based on Substrate's blockchain system, featuring modules like consensus, P2P, and staking. The contract layer supports the creation of various staking contracts for tokens such as XTZ, Atom, and Dot. Token holders can stake through these contracts, receiving rTokens in return. The application layer facilitates the development of decentralized trading markets for rTokens, promoting their circulation and trading.
| Ticker | FIS |
| Category | Decentralized Finance (DeFi) |
| Website | https://www.stafi.io/ |
| @Stafi_Protocol | |
| Telegram | stafi_protocol |
| Contract Addresses | |
|---|---|
| polkadot | 0xef...8d Copied! |
| ethereum | 0xef...8dCopied! |
| sora | 0x00...e9Copied! |
Protocol architecture
Stafi operates in a decentralized manner and will be connected to Polkadot as a parallel chain, utilizing Polkadot's underlying consensus for security and performance. The core contract layer ensures the secure ownership of stake tokens through contract code, and a distributed key storage protocol safeguards the stake address with multi-signature technology. Token holders can stake or redeem their stakes at any time without third-party intervention. The Stafi protocol guarantees that each rToken corresponds exclusively to a token on the original chain, allowing for secure and independent transactions.
Implementation of Stafi
Staking contract
The Stafi protocol's interaction with original blockchains involves staking contracts, such as XTZ-SC for Tezos. When a user initiates a stake, a multi-signature address is created, and tokens are transferred to this address on the original chain. Upon successful transfer, the staking operation locks the tokens, and the Stafi protocol issues rTokens to the staker. The process involves monitoring chain statuses and ensuring security through time delays and multi-pass validation, aligning with PoS projects' transaction determinacy.
Multi-signature addresses
Stafi employs an account model for staking, requiring private key signatures from users. To maintain exclusive correspondence between stake assets and rTokens, Stafi uses an intermediate address model with no private key ownership. Secure multi-party computing and threshold multi-signature technology ensure that signatures are only executed during redemption, safeguarding asset neutrality.
Secure multi-party computation
This computation method allows for secure calculation of predefined functions without revealing original data, ensuring privacy and security. In Stafi's staking contracts, users generate multi-signature addresses, and validators participate in computations, verifying results through encrypted channels without disclosing private keys.
Ownership transfer
Once staking is completed, the redemption rights belong to the rToken holder. If tokens are traded, ownership rights transfer to the new holder, who can initiate redemption or further trades. The entire process is decentralized and managed through validator signatures, ensuring smooth ownership transitions.
Stafi Special Validator (SSV)
Role of SSVs
SSVs are crucial in maintaining the security of staking contracts by recording asset correlations between original chains and rTokens. They perform tasks like signature verification, ensuring asset ownership is transferred securely and efficiently.
SSV group operations
SSVs operate in groups with fixed shifts to ensure consistent performance. Validators are selected based on criteria like block-producing rates and staking ratios. This system balances security and efficiency, adapting to the network's needs.
Incentives and penalties
Stafi incentivizes positive behavior and penalizes non-compliance among validators. Validators earn FIS tokens for participation and face penalties for security breaches or inactivity. The staking mechanism requires validators to stake FIS tokens, proportionate to the value of assets they handle.
Tokenomics of Stafi
FIS token
FIS is the native utility token of the Stafi protocol, facilitating transactions and governance. It is used for staking, paying transaction fees, and participating in protocol governance. FIS plays a crucial role in maintaining security and incentivizing validators.
rToken
rTokens are alternative tokens representing staked assets. They can be traded and redeemed, providing liquidity while maintaining a 1:1 ratio with the original staked tokens. rTokens are integral to Stafi's liquidity and reward mechanisms.