Unlocking Liquidity and Boosting Adoption: StaFi's Innovative Approach to Starknet Staking

🤷‍♀️ All-Purpose Hangout
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Abstract

Staknet will support the Stake functionality on Q4, and StaFi proposes to release Stark LST/LSaaS to support the adoption and decentralization of Starknet staking.

What is StaFi

StaFi is a leading Liquid Staking infrastructure provider and protocol for PoS chains. Its Liquid Staking as a Service (LSaaS) framework enables developers to create Liquid Staking Tokens (LSTs) and Liquid Re-staking Tokens (LRTs) across ecosystems like ETH, EVM, BTC, CosmWasm, and SOL.

By issuing rTokens (e.g. rETH, rMATIC, rBNB, rATOM), StaFi unlocks the liquidity of staked assets, allowing users to earn staking rewards while retaining the flexibility to engage in DeFi. With support for major blockchains such as Ethereum, Solana, Polygon, BNB Chain, and Cosmos, StaFi bridges liquidity and security in Proof-of-Stake networks.

What is LSaaS

LSaaS is a paradigm shift offering developers a robust framework to build their own Liquid Staking Tokens (LSTs) and Liquid Re-staking Tokens (LRTs). Compared to Rollup as a Service(RaaS), RaaS projects, like Altlayer, Dymension and Conduit, are primarily concerned with improving blockchain scalability and efficiency through layer 2 solutions.

For a deeper comparison and analysis, you can check out the full article: Read here.

LSaaS and rSTARK: Accelerating Starknet Staking

StaFi’s development efforts in the LST domain are focused on two key areas:

  • LSaaS Integration with Starknet LSD Stack: Starknet LST developers can quickly deploy a Starknet LST with minimal development and configuration, leveraging StaFi’s robust LSaaS framework.
  • rSTARK: Users can deposit STARK tokens on the StaFi Protocol without any limitations based on their capacity. The deposited STARK is then staked by StaFi’s staking contract, which autonomously selects the optimal sequencers to generate and maximize staking yields. Users who deposit STARK on StaFi will receive an equivalent amount of rSTARK (rToken StaFi equivalent) to the value they staked. rSTARK is an ERC20 and rebaseable token, allowing users to freely trade rSTARK or provide liquidity (LP) to earn additional yield. This additional yield can be staked alongside reputable DEX partners on the Starknet ecosystem.

Both the Starknet LSD Stack and rSTRK developments will be implemented through the rLaunchpad season3.

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