This article was first published on The Blueprint by Bluzelle - Medium
🔔 Stafi Protocol, the first DeFi protocol unlocking liquidity of staked assets and a project built on Polkadot, has reached a partnership with Bluzelle. Being able to bridge off-chain and on-chain data with our decentralized database and oracles, Bluzelle will help to support data for Stafi’s staking contract, such as pledge, redemption, transaction, as well as mapping information between rTokens & Staked tokens.
Proof-of-stake is one of the most adopted consensus mechanisms in the crypto world, with staking as its core incentive model to ensure network discipline and security. However, due to immaturity and volatility of the cryptocurrency markets, token values can be depreciated quickly. As a result, the staking rewards may not be able to cover the loss.
Stafi takes an innovative approach to solve this problem. Through their staking contracts, stakers can get alternative tokens, called rTokens, which represent the staked assets and are tradable on CEX or DEX. It enables stakers to liquid their staked tokens while still receiving staking rewards from the original blockchain.
“Through the cooperation with Bluzelle, StaFi can rely on Bluzelle’s powerful database to complete the upgrade of Staking Contracts, supporting including price predictions of rToken/original Token, over-collateralized data in Lending Protocol, and related transaction-related data in future Crypto. That makes us really excited,” said Young Liam, Founder of Stafi
This partnership with Stafi will be a great example of how Bluzelle’s decentralized oracles can bridge external data on-chain for smart-contract enabled platforms including Polkadot. Our database will also allow Stafi to scale along with their increasing staking transactions.
“Since discovering Stafi, I quickly realized the massive value it can bring to the entire sector. What may be obvious as an idea is actually technically challenging. It shows the strength of the Stafi team and it’s going to be amazing to work with them and see ...
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The Blueprint by Bluzelle - Medium