A new partnership that is shaking the DeFi world with promises of better opportunities was recently announced. StaFi partnered with EasyFi, in a bid to ensure that rTokens can easily be accessed as collaterals on the EasyFi lending platform.
StaFi has collateralized rTokens, which will now be present on EasyFi, and it permits its users to easily borrow or lend their staked. It portends an increase in liquidity in the world of decentralized financing.
The partnership will offers users of EasyFi new ways to generate gains, while allow them to easily lend out their stable coins or borrow stable coins from the financial market run by EasyFi.
At the moment, EasyFi occupies the position as one of the first ever lending protocols that allows staked derivatives to be used as collaterals on the Layer 2 network. EasyFi is always looking for ways to improve the value and usage of digital assets like cryptocurrency.
EasyFi was ecstatic to state its partnership with another DeFi giant, StaFi, as it will offer brand new collateral markets for users of EasyFi lending protocol. It will allow rATOM and other numerous rTokens to be utilized as collateral.
By adding these digital assets to the EasyFi terrain, more liquidity and value will be incorporated in the Layer 2 DeFi realm. Usually staked derivatives are not used for anything else, until after the staking period ends. This will change with the partnership between StaFi and EasyFi.
rTokens: What are they?
When holders of PoS tokens stake their tokens on the smart contracts run on StaFi network, they are given rTokens. These rTokens are derivative tokens.
Once a PoS token is staked, the user is given rToken that is in the same value of the PoS token staked.
Having a rToken permits the users to have access to rewards that come from staking, while being able to bask in the liquidity that comes via trading. Apart from the aforementioned, users can also redeem the tokens that they have staked whenever they want.
What is Liquid Staking?
It means tokenizing a stake. PoS consensus mechanism means that users can easily get rewards for giving up their digital assets for a period. This goes a long way to secure the network.
Many protocols come with stringent policies and specific periods before the users can have access to the assets they staked. This means that the staked assets only earn staking rewards, and nothing else. If a user wants to have access to the staked token, he or she is forced to withdraw the asset. It is not the case with StaFi and EasyFi.
Here, users can have access to the liquidity that was once locked up in staked assets because of the tokenization of these staked derivatives. After that, the staked derivative can easily be incorporated to other DeFi projects to earn different kinds of yield. What this means is that staked assets will be liquid.
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