Victor Ugochukwu · Dec 14, 2020 . 5min read
StaFi releases rETH liquidity solution addressing Eth 2.0 staking problems
StaFi Protocol releases the rETH liquidity solution in order to overcome the challenges of Eth 2.0 staking.
By Victor Ugochukwu · Nov 16, 2020 . 5min read
StaFi Protocol has released more information on liquid staking introducing the rETH solution to the liquidity problems that may arise with Stakers and validators participating in Eth 2.0
In a recent Medium blog post, StaFi carefully put forward the rETH solution. This accommodates the problems of Stakers and Eth Client Node Validators on Eth 2.0
As Eth 2.0 does not allow delegation while also setting the minimum staking threshold at 32 ETH, StaFi’s rETH solves this as it allows stakers deposit as little as 0.1 ETH and no need of running validator nodes with the associated time and costs required to maintain them.
And for Validators who may face huge uptime cost as well as slashing penalties for defaulting, StaFi will allocate staked ETH in SC to a batch of well-performing original validators.
Specifically, through a StaFi Staking Contract (SC) on Eth 1.0, Stakers will receive an equivalent amount of rETH for ETH. He or she may then trade the rETH token on both CEX and DEX. The rETH also be used in other DeFi protocols as collaterals. Validators on Eth 2.0 may also sell a part of their ETH staked in the SC back to StaFi.
StaFi considers and implements strong security to ensure Stakers’ funds are always safe. For this, it adopts a decentralized approach. StaFi Special Validators (SSV) will be the custodians to the SC keys using multi-party secure computing (MPC) and multi-signature. The system will select 21 SSVs which changes every 6 hours. With this, to recover the keys to SC, at least 16 of the 21 SSVs needs to ascent before the operational authority of the SC is released.
StaFi designed rETH to be interoperable with other blockchains with competitiveness against similar solutions.
rETH won’t be just operational on Ethereum network alone. StaFi projects rETH to be interoperable with Polkadot and Cosmos using the cross-bridge functionality.
Comparing with other liquidity staking solutions like Ankr and Rocket Pool, rETH exchange rate will be dynamic, with no lock-up. Validators pledge per node will be from 4 – 16 ETH compared to Rocket Pool 16 ETH, which is fixed. Lastly, StaFi is still the only Eth 2.0 liquidity solution provider that has disclosed its key security system. Both Ankr and Rocket Pool didn’t make theirs public.
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