There was once a time when people hid their money and other valuables in the ground or in a hole in the trees for safety purposes. That era is long gone and mankind has since evolved from those ancient days of old.
Then came the invention of banks and other financial institutions where money and other valuable assets can be deposited for safe keeping. A lot of procedures needed to be undertaken so as obtain an account and various middlemen such as the banker, the broker helped to facilitate this process.
However we needed something more, we needed swiftness and accessibilty at its top level.
Since the invention of crypto currencies, it's has become easier and easier to go cashless and still retain assets of value.
How are these cryptocurrencies transacted?
Say hello to Decentralized finance popularly known as DeFi. DeFi is the new and improved way of transacting cryptocurrency and doing other financial services.
The usefulness of DeFi to the common man.
Unlike Banks and others financial institutions that require middlemen DeFi eliminates this totally allowing for ease of transactions to and from anywhere in the world.
DeFi encourages the ease of transaction of financial services through the use of blockchain.
Transactions imprinted on the blockchain cannot be altered hence providing transparency, eliminating fraud and encouraging traceability. It makes use of smart contract which are programs known as Decentralized Applications or Dapp. These Dapps run on the blockchain to carry out transactions.
StaFi's Impact on the Blockchain
StaFi enables liquid staking implying that
when you bond or hodl your token in a particular network, you get rewarded and can also trade your rewards. These rewards are called reward tokens or rTokens.
StaFi invented rBridge which helps to connect StaFi tokens to other blockchain like Ethereum, Binance Smart Chain, Cosmos and the likes on a ratio of 1:1 meaning you don't loose part of your token on transfer across these various networks.
StaFi also brought about rETH which can be staked on staFi app, the perk being that they reduce greatly the amount of ETH required to stake from 32 ETH to 0.01ETH.
Various rTokens has been created by StaFi for a number of tokens such as rETH, rATOM, rKSM, rMATIC, rDOT rewards that can still be traded on the StaFi app.
StaFi protocol seeks to create solutions in the blockchain space helping users get utmost satisfaction.
Source:
https://blog.coinbase.com/a-beginners-guide-to-decentralized-finance-defi-574c68ff43c4
https://lightblocksnews.com/a-complete-guide-on-stafis-rtokens/