The Stafi DeFi project makes up a new wave of staking services which will solve most liquidity concerns of the Proof of Stake networks as we are reading more in the upcoming blockchain news today.
Participating in the Proof of Stake networks can be complex and they can require a lot of capital. Services that are representing node operators emerged to help the laymen enjoy their passive income with their PoS tokens. A new wave of projects led by the Stafi Defi project emerged to unlock their PoS network frontier and solve their liquidity woes. Stafi emerged along with the growing excitement in the staking protocols with the launch of Ethereum 2.0. In order to understand the staking services, it’s necessary to know the staking services for the blockchain networks as well as the design flaws that could hinder further adoption.
The Third Generation of #Staking 😕
A unique project spotlight: thanks to @crypto_briefing for covering $FIS and our vision! “StaFi’s permissionless staking, coupled with a non-custodial marketplace to trade rTokens, can make liquid staking a reality.”https://t.co/W6V3YNT8iK
— StaFi (@StaFi_Protocol) August 8, 2020
The Defi movement stole the spotlight as of late, staking protocols are gaining more traction. Just as similar to the yield farming craze, the stakers can enjoy high returns for assisting in the decentralization of the protocol. The staking protocols like Tezos, Dash, Cardano, and Cosmos, and many others offer users staking rewards. The mechanism differs from Bitcoin’s which leverages the Proof of Work as ETH also uses a PoW consensus mechanism but the network will shift to a Proof of Stake mechanism in the next few years.
The principal difference between the two approaches revolves around how the network’s blockchain confirms transactions. The PoW networks task so-called miners to the larger scale and the industrial computer farms to earn the block rewards. The miners also help to secure the network from attacks. It is expensive, extremely energy-consuming for random people to just join and earn something. PoS networks differ in every way.
These are less expensive to join, consume less energy, and have higher security features as well. There was some contention among the community as to how much more secure the mechanism is. Despite the advantages of the PoW blockchain networks, Pos suffers from a lot of problems, and companies like Stafi will solve these problems. Other staking services in the crypto space such as Bison Trails cater to institutional clients while others like Dokia and Chorus One are catering retail users.
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