StaFi rATOM App is a decentralized DeFi product that unlocks the liquidity of the Cosmos token ATOM staking.
rATOM token is a staking derivative of ATOM issued by StaFi when users stake ATOM through StaFi rATOM App. rATOM tokens are anchored to the staked ATOM and the corresponding staking reward and they bring the flexibility to trade at any time while still receiving staking rewards. With rATOM App, ATOM stakers could enjoy efficient liquidity and maximized staking rewards at the same time.
rATOM app can help ATOM stakers to solve the following two problems:
1) There will be no need to wait for a long 21 day unbonding period to transfer or trade staked ATOM assets. rATOM App users can transfer and trade the staking voucher rATOM token at any time on Uniswap to enjoy liquidity and hedge price risks.
2) There is no need to learn the complicated Tendermint consensus mechanism of Cosmos and staking reward calculation rules any more. With rATOM App, users only need a few simple steps to deposit ATOM into the rATOM contract, which will automatically select the best validator by executing the Staking Reward Maximization strategy algorithm.
You can swap rATOM tokens into ERC-20 format at 1:1 ratio through the Swap function in rAsset.
When a user deposits ATOM into the rATOM contract, StaFi will calculate the amount of rATOM which has to be issued to the user based on the current exchange rate between the amount of ATOM deposited and rATOM. When a user holds rATOM, StaFi will calculate the amount of redeemable ATOM based on the real-time staking income of ATOM.
The rATOM exchange rate Ci grows with the increase in Staking income. It is determined by the total number of ATOM locked in the staking contract Qstk, the total number of redeemed ATOM Qred, the number of staking rewards Qrew, the number of slash Qslh, the commission rate Rcom, the total number of rATOM issued M, and the total number of burnt rATOM N. The calculation formula is as follows:
StaFi will create rich, multi-level circulation scenarios that stretch across different chains for holders of rATOM :
1) After the rATOM App is live, StaFi will establish rATOM/ETH pairs on DEX such as Uniswap and Balancer, and organize liquidity mining incentive campaigns.
2) StaFi will not only support the circulation of rATOM in the ETH ecosystem but also empower ATOM engagement in the DeFi protocol of Polkadot and Cosmos through cross-chain bridge services.
The underlying architecture used for rATOM App is the same as rDOT App，which is already aduited by the third-party security experts and CertiK, so there is no need for repeated audit for rATOM.
The relevant commission and fee parameters in rATOM App are following:
1) Stake ATOM: 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 Cosmos .
2) Unbond ATOM: Users need to pay a 0.2% redemption fee(based on how much rATOM 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 commision).
No, after the user completes the "Redeem" operation, s/he has to wait for around 21 days to get the redeemed ATOM tokens, which will be automatically sent to the users’ designated account after the lock-up period.
The SRMS includes the following 4 parts:
1) Diversified delegation.
2) Strictly select original validators candidates.
3) Automatically delegate to the OVs with highest staking APY.
4) Minimizes the potential loss when the OVs get slashed.