StaFi rKSM App is a decentralized DeFi product that unclocks the liquidity of the Kusama token KSM staking.
rKSM Token is a staking derivative of KSM issued by StaFi when users stake KSM through StaFi rKSM App. rKSM tokens are anchored to the staked KSM and the corresponding staking reward and they bring the flexibility to trade at any time while still receiving staking rewards. With rKSM App, KSM stakers could enjoy efficient liquidity and maximized staking rewards at the same time.
rKSM App can help KSM stakers to solve the following two problems:
1) There will be no need to wait for a long 7-day unbonding period to transfer or trade staked KSM assets. rKSM App users can transfer and trade the staking voucher rKSM token at any time on Uniswap to enjoy liquidity and hedge price risks.
2) There is no need to learn the complicated NPoS consensus mechanism of Kusama and staking reward calculation rules any more. With rKSM App, users only need a few simple steps to deposit KSM into the rKSM contract, which will automatically select the best validator by executing the staking reward maximization strategy algorithm.
Now the estimated staking APY of KSM staking on rKSM App is around 16%, which is 2% more than the averaged staking APY of the whole Kusama network because of SRMS Algorithm:
The KSM tokens deposited by the user will be distributed to several(N) mini staking pools. Parameter N will be set based on the scale of the total deposited funds. Each mini staking pool will then select several (M) best validators by executing the SRMS algorithm, so as to reduce the slashing occurrence probability from a single node.
In StaFi rKSM SRMS algorithm, it is very important to select the professional and high-quality validators to join as the Original Validators (OV), and ask them to set a reasonably low commission rate to provide higher APY for stakers. The rKSM App will monitor and evaluate the performance data of original validator candidates from the metrics including active rate, slashing record, self-bond ratio, node identity, commission ratio, etc., to ensure that excellent validators with relatively low commission are selected.
Since Kusama adopts NPoS consensus mechanism, the staking income obtained by each elected node is the same in absolute amount. If two nodes are elected and one with more staked KSM, then stakers will get more rewards if they stake the other node (with less staked KSM).Therefore, each Mini Staking Contract Pool will follow this staking logic: rank all OVs by the number of staked KSM they obtained from low to high every 1Era (6H), and the top N OVs will be selected for nomination.
Note: The above-mentioned parameters M and N are all flexible.
The relevant commission and fee parameters in rKSM App are following:
1) Stake KSM: There is no commission but a service fee, called Relay Fee. The Relay fee is paid in StaFi mainnet FIS token(1.5 FIS for now) and for the related gas fee cost from the cross-chain bridge’s contract interaction between StaFi and Kusama .
2) Unbond KSM: Users need to pay a 0.2% redemption fee(based on how much rKSM tokens s/he wants to unbond) and 3 FIS for the Relay Fee.
3）Staking Reward Commission：10% of your net staking reward( your total staking reward minus validator commission).
rKSM tokens can be freely transferred and traded. At present, StaFi team has initiated a trading pair of rKSM/ETH on Uniswap. So users can swap rKSM tokens into ERC-20 format at 1:1 ratio through rBridge at any time, and then freely trade it on Uniswap.