Injective has welcomed the opportunity to collaborate with Stafi, a DeFi protocol built on Substrate for staking derivatives that unlocks the liquidity of staked assets. This partnership will create a number of new opportunities not only for Injective and Stafi but also for the DeFi community as a whole as Injective looks to introduce new forms of staking derivatives on the DEX moving forward. This also helps to further expand the panned integration with Polkadot.
Today, the demand for both the decentralized derivatives markets and staked assets is growing at a rapid pace. Stafi has taken advantage of this growing market by providing consumers with the ability to liquefy their staked assets in order to hedge against market volatility while still earning rewards. This process works via Stafi’s reward-Token (rToken). When users stake PoS tokens through Stafi, they will receive an equal amount of rToken in return. For example, rINJ can represent staked INJ. rToken allows users to receive staking rewards and access liquidity any time by trading rTokens directly. Users also have the right to redeem the corresponding amount of staked tokens at any time.
As one can imagine, Stafi’s technical design helps users of Injective to derive more benefits than ever before from the DEX. Now users can not only trade on unique derivatives markets on Injective but also earn additional yield by unlocking their staked INJ tokens in the future.
The collaboration will be formalized with the accomplishment of the following goals:
1. Staking derivatives
Injective will introduce StaFi’s staking derivatives onto the DEX, which will allow staked assets to be liquid. This additional liquidity can then provide traders the avenue to farm for higher yields by interacting with other DeFi protocols.
2. Unlocking liquidity for staked INJ tokens
As aforementioned, Stafi can help to unlock additional liquidity for INJ tokens in the near future. By doing so users can both stake INJ while also using rToken to farm for additional yield. This can then help to reduce the competition current DeFi enthusiasts face when deciding between whether to stake their tokens or to use those tokens to take part in DeFi yield generation.
3. Further synergies with the Polkadot and Substrate communities
Recently announced is an upcoming integration with Polkadot so that assets built on Polkadot could be traded on Injective with ease. One of the primary goals at Injective is to allow for completely decentralized cross-chain derivatives trading. Stafi aids in this effort by further expanding the potential to work with the Polkadot and Substrate communities.
New markets will be created and listed by using Stafi’s native FIS token which is built on top of Substrate. This will enable holders and investors of Stafi to create and trade on new derivative markets that utilize FIS.
The Stafi team is enthusiastic about the potential of this collaboration and their CEO Liam Young had this to say:
“We are excited to be partnering with Injective and listing our native token FIS on their DEX. This collaboration will bring on a new wave of synergies for both Injective and StaFi as we will be able to grow and scale with each other. We are looking forward to exploring new opportunities with respect to staking, and the DeFi industry.”
Stafi’s ecosystem will naturally expand as more users enhance the staking pool and farm FIS tokens in the future. Through this collaboration, Stafi will be able to increase its adoption speed and reach.
“We are thrilled to be part of Stafi’s journey, especially as it helps us to deepen our collaboration with Substrate. This partnership will enhance not only Injective’s mission of truly decentralized cross-chain trading but also the flexibility and interoperability of DeFi as a whole.” -Eric Chen, CEO of Injective 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. Learn more here.
Injective is a custom interoperable layer one protocol for building powerful exchange, DeFi, derivatives & Web3 applications. Injective was created using the Cosmos SDK and is able to achieve instant transaction finality while sustaining lightning fast speeds. INJ is the native deflationary scarce asset that powers the Injective Protocol and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by Pantera Capital.