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

General
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Abstract

Movement is a community-first blockchain providing the highest possible TPS through Move, instant finality, native day-zero access to mass liquidity, and modular customizations. StaFi proposes introducing liquid staking for MOVE and offering Liquid Staking as a Service (LSaaS) to encourage wider adoption of MOVE staking while unlocking additional liquidity.

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 rMOVE: Accelerating MOVE Staking

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

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

Development Support

Both the Movement LSD Stack and rMOVE developments have been approved by the StaFi community through rLaunchpad Season 3.

However, during the research phase, we’ve identified some challenges. As we know, LST involves not only the smart contract layer but also the validator layer. Currently, the testnet and validator whitelist are not open, which impacts development and testing processes. We hope the Movement community can provide support to address these issues.

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