Home
News
Decentralized finance (DeFi) protocols, StaFi, recently updated the commission fee structure for staking derivatives to attract new customers. StaFi is the first DeFi protocol to unlock staked assets’ liquidity.
According to the company blog post, the protocol will now charge a 10% commission which will be equally distributed between the StaFi decentralized autonomous organization (DAO) Treasury and validators. Earlier, the firm charged a 19% staking commission on its users.
- Before: 10% from the staking pool.
- After: 5% from the staking pool.
Meanwhile, to run a node, the protocol decided to put a minimum threshold of 4 ETH, which is comparatively lower than most other similar projects. The developer team is currently working on the project. Once approved, the proposed changes to the commission fee structure will come into force in the week following this proposal.
The upcoming Ethereum upgrade ‘Shanghai’ will benefit StaFi to stand out from its competitors. Shanghai upgrade is expected to enable ETH withdrawals and increase the growth of the Liquid Staking Derivatives (LSD) sector. The Ethereum staking ratio is 13.79%, with more than 15 million ETHs deposited. At press time, the second leading crypto asset by market capitalization is trading at $1,643, down by 1.30% from the past seven days.
“We will need to solve two vital problems: the lack of liquidity for rETH and the rETH Depeg problem.”
“These two problems are strongly correlated, as rETH liquidity is fundamental to maintain its Peg as well as perpetuate DeFi use cases,” StaFi said in its post. And the team is also working to connect the lending protocols like Radiant and Demex to launch rETH Defi use cases.
This year Decentralized Finance (DeFi) market started on a good one. The recent bullish crypto market outburst helped DeFi regain its total value locked (TVL). For the first time after the FTX collapse, the DeFi TVL reached a $50 billion market cap in the second week of February. But the value started to slide down again after a bullish run-up in the past seven days.
Data shows that in November 2022, the DeFi TVL fell by nearly $50 billion. In mid-Feb, TVL rose by nearly $51.1 billion. $8.78 billion was held by Lido. The largest Defi market, Lido, recorded its TVL reaching $8.8 billion. Recently ViktorDeFi, a researcher, tweeted, “DeFi prediction markets are arguably the most underrated crypto theses for 2023.”
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other devices. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
