rFIS Solution

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rFIS Solution
Introduction to rFIS
Definition
rFIS is a Staking asset redemption certificate issued by StaFi to users. When a user Stakes FIS (the native token of StaFi), StaFi will calculate the amount of rFIS to be obtained by the user based on the current exchange rate between FIS and rFIS. When a user holds rFIS, StaFi will calculate the amount of FIS that can be redeemed based on the Staking income of FIS.
The rFIS exchange rate (Ci) increases with the accumulation of Staking income. It is mainly determined by the total number of FIS locked in the staking contract (Qstk), the total number of redeemed FIS (Qred), the number of staking rewards (Qrew), the number of slashes (Qslh), the commission rate (Rcom), the total issuance of rFIS (M) and the amount of rFIS that were burned (N). The formula is as follows:
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Value Propositions
StaFi has made the following progress for FIS stakers through the introduction of rFIS:
1) There is no need to worry about the liquidity of the FIS tokens that are Staked. You can trade rFIS on Uniswap any time to obtain liquidity in the future;
2) The StaFi Staking Contract Pool will automatically capture those Original Validators with the highest ROI on the chain for Staking, which can optimize the users’ staking yield.
3) The current NPoS Staking mechanism adopted by the StaFi mainnet is hard to be understood for an ordinary Staker, with regards to the consensus mechanism, the maximum number of nominators that a validator can have, the determinants of Reward, how to claim reward, how to choose the best validators, and so on. But with the emergence of rFIS, FIS stakers can conduct FIS Staking with just one-click.
Original Validators Program
In the business structure of rFIS, we will launch the Original Validators (OV) program. The Original Validators are the ones who join the FIS Staking Contract plan. Using the FIS token deposited by the user, the StaFi Staking contract will nominate each OV who joins the OV plan according to the nomination rules.
The OV in the rFIS solution needs to first run the nodes of the StaFi mainnet, and then register through StaFi’s OV registration tool. 
OV Nomination Rules
Since StaFi adopts NPoS consensus, the staking income obtained by each elected node is relatively equal without any correlation with the number of Staked FIS. In addition, the nominators (stakers) of the elected nodes will share the proceeds of Staking by the proportion of votes. That means if one elected node has more Staked FIS than another, stakers will enjoy higher RoR if they choose to Stake the later.
Therefore, the rFIS Staking Contract will automatically execute the following nomination strategy:
1) Nominations are executed in every Era(6H).
2) OVs are selected whose commission is set less than or equal to R, which will be set at 10% in the beginning.
3)Nominations of the picked OVs are sorted from low to high, and the first number N OVs are chosen to nominate (number N will set at 10 in the beginning).
Note: Both R and N are governance parameters and will be slightly adjusted according to the market situation and product development.
Slash
Through rFIS, StaFi can help users avoid being Slashed in the following ways:
1) Staking Contract prefer selecting validators who have not been Slashed in history to be official OVs;
2) Staking funds will select N OVs(number N will be set at 10 in the beginning)each time when they are nominated. Therefore, even if one Original Validator is Slashed, it will not have a big impact on Staking Rewards.
Claim
StaFi network will calculate the reward for all validators each Era(6hour). However, the nominators (stakers) and validators will not receive rewards unless they claim them. If the Rewards have not been claimed for 84Era (21days), they will be destroyed.
within 21 days, as long as a validator or a staker Claims rewards, the system will automatically issue rewards for all stakers. In order to let stakers receive Staking Reward in a timely manner, StaFi Staking Contract will adopt smart contracts to Claim rewards regularly at an appropriate frequency, such as every 6 hours.
Therefore, if any of the following two situations occurs, StaFi will update the exchange rate of rToken in time:
1) Other stakers apply for claim, which causes StaFi Staking Contract to receive the Staking Reward before the next round of automatic Claim;
2) The automatic Claim Reward is triggered every 6 hours, and so the Staking Contract receives Staking Rewards.
rFIS Expenses
Mint rFIS
In order to encourage rFIS Staking, rToken minting is totally free.
Commission
StaFi and Original Validators will in total charge 20% of the net income of the rFIS Staking Contract as commission. The Commission ratio of OV will be dynamically adjusted according to the number of validators in the StaFi Staking Contract. For example, when a small number of OVs are added to rFIS, StaFi may increase OV’s Commission ratio to attract more OVs.
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At the beginning of the business, OV’s Commission rate is temporarily set at 10%. So Original Validators will receive 10% of the net income of rFIS Staking contracts as Commission.
Burn rFIS
When users want to redeem FIS, they only need to apply for redemption from StaFi Staking Dashboard. Soon, they will obtain FIS tokens. The redemption process is mainly divided into two steps:
Step 1: Submit the number of rFIS for redemption, the maximum number is the total number of rFIS one holds;
Step 2: After your submission has been confirmed, the system will burn a certain amount of rFIS, and calculate the quantity of FIS by the current exchange rate. Then the system will deduct the service charge and Commission fee and send the remaining to the user’s wallet address.
The redemption fee for rFIS (Feered) is determined by the number of rTokens that the user applies for redemption (M), the current rToken/Token exchange rate (Rc), and the redemption rate (Rr):
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The redemption fee (Rr) is 0.2% in the initial stage.
Features of rFIS
1) The exchange rate of rFIS/FIS will gradually increase as Staking rewards are generated
2) Users can calculate the amount of rFIS obtained according to the rFIS exchange rate;
3) rFIS can be circulated in DEX and CEX, and used in DeFi protocols. rFIS is also projected to be available on Ethereum, Polkadot and Cosmos blockchains through StaFi cross-chain bridge service.
rFIS Secondary Markets
StaFi will create secondary markets for rFIS through the following ways:
1) When rFIS products are launched, StaFi has established rFIS/FIS, rFIS/ETH trading pairs on DEX such as Uniswap and Balancer, and will also incentivize liquidity providers through FIS rewards.
2) StaFi has reached cooperation with some centralized exchanges that will also facilitate the trading of rFIS. That will help the circulation of rFIS in multiple centralized exchanges.
3) StaFi will not only support the circulation of rFIS on Ethereum, but also allow rFIS to be utilized in Polkadot and the Cosmos ecosystems through our cross-chain bridge services.
4) In addition to trading on CEX and DEX, rFIS can also be utilized in DeFi protocols, either used as collateral or being lent out to earn additional interests.
Income Distribution Plan
In the future, the revenue of the rFIS solution will be distributed as following:
1) 70% will be given back to FIS token holders, in the form of buyback or token burning;
2) 20% will be deposited in the StaFi Treasury to support the further development and market promotion of the StaFi ecosystem;
3) 10% will be allocated to the StaFi team.