What is a rToken?
rToken or Reward Token is an alternative token the Staker receives through the staking contract. For example, this is something regular on the Fiat market too. Many brands or supermarkets are offering loyalty points/coins for the purchase.
How does it work on STAFI Protocol?
Basically, if you stake FIS tokens, you will receive back rFIS. The ratio for these assets is one on one. Furthermore, rTokens can be traded on the market, and after the transaction is done, the staking contract will know how to adjust the rights of the Staker (reward & redemption rights).
However, another important layer is the one STAFI , together with customized APIs, are creating a decentralized bonded asset trading market in order for the rTokens to circulate, to be transferred and sold (traded) on the STAFI protocol.
This protocol is connected to Polkadot as a parallel chain which means STAFI shares with Polkadot’s underlying consensus, and Polkadot is also in charge to assure the security and performance of the processes.
What is STaFi?
Not many may know that STaFi comes from Staking Finance, but for sure everyone knows that it was the first DeFi Protocol unlocking liquidity of staked assets.
Basically, you can stake PoS tokens through STaFi and you receive back rTokens in return. These are available for trading while still earning staking rewards.
Also, in order to receive staking rewards, you can nominate your STaFi tokens to a professional validator such as stake2earn. We, at stake2earn, managed so far to have 207,732.62423917724 FIS nominated.
Do you want to nominate your FIS?
Check out our tutorial on ‘How to nominate with stake2earn’ by clicking here.
