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Proposal for a New Liquid Collateralized Derivative (LSD) Solution for EVM Compatible Chains by StaFi

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On April 7th, the DeFi protocol StaFi launched a proposal in the community to launch a new liquid collateralized derivative (LSD) solution for EVM compatible chains. rToken will be

Proposal for a New Liquid Collateralized Derivative (LSD) Solution for EVM Compatible Chains by StaFi

On April 7th, the DeFi protocol StaFi launched a proposal in the community to launch a new liquid collateralized derivative (LSD) solution for EVM compatible chains. rToken will be directly issued on the target chain to enhance its security and composability. In the new EVM LSD scheme, rToken Relay will be directly deployed to the target contract layer, enabling it to perform operations directly. The main feature of this scheme is that rTokens will be directly issued on the target chain, and users do not need to cross chain communication when obtaining rTokens. Moreover, given the same token standard, rTokens can be easily integrated into DeFi on the target chain.

StaFi Launches New Liquidity Collateral Derivatives Solution for EVM Compatible Chain

Introduction

On April 7th, StaFi announced its proposal to launch a new liquid collateralized derivative (LSD) solution for EVM compatible chains. The solution aims to improve the composability and security of the target chain by issuing rToken directly on it. As a result, users would no longer be required to use cross-chain communication to obtain rTokens, which can be easily integrated into the DeFi on the target chain.

What is the New EVM LSD Scheme?

The new EVM LSD scheme proposed by StaFi will deploy rToken Relay directly to the target contract layer, providing the ability to execute operations directly. One of the main features of this proposal is that rTokens can be issued directly on the target chain, which would eliminate the need for cross-chain communication between chains. Moreover, this new solution will enhance DeFi’s scaling by enabling a wide base of assets, protocols, and liquidity for various applications.

How Does the rToken Scheme Work?

The rToken scheme is a cross-chain solution that enables liquidity between chains through the issuance of tokens that represent on-chain assets. rTokens can be used to avoid the limitation of cross-chain assets and provide users with a wider range of assets to work with. This scheme effectively increases liquidity on the chain, which can be used for DeFi applications.

Benefits of the New EVM LSD Scheme

The proposed EVM LSD scheme provides multiple benefits to the DeFi ecosystem. First, it enhances security by issuing rToken directly on the target chain, enabling investments in the target chain without the cross-chain communication. This would eliminate many of the risks inherent in the DeFi ecosystem. Secondly, the new solution would foster an increased level of composability between applications, protocols, and liquidity. The LSD model would effectively increase the organic liquidity on the chain, furthering DeFi’s envelope into mainstream adoption.

Conclusion

StaFi’s proposal for a new liquid collateralized derivative (LSD) solution for EVM compatible chains is a significant step in facilitating DeFi’s coalescence into mainstream adoption. The new EVM LSD scheme will bring increased security and scalability to the DeFi ecosystem. The ability to issue rTokens directly on the target chain would eliminate the need for cross-chain communication and enable further composability of DeFi applications.

FAQ

Q: What is StaFi?
A: StaFi is a cross-chain staking protocol that aims to provide liquidity, flexibility, and security for DeFi solutions on networked chains.
Q: What is the benefit of rToken?
A: rToken enables liquidity between chains through the issuance of tokens that represent on-chain assets. It enhances the composability of DeFi applications.
Q: How does the EVM LSD scheme work?
A: The new EVM LSD scheme allows for the deployment of rToken Relay directly to the target contract layer, providing the ability to execute operations directly. The feature that rTokens can be issued directly on the target chain enhances security by eliminating the cross-chain communications required for investments.

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