Is StaFi A Good Investment?

tl;drStaFi (FIS) is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through StaFi and receive rTokens in return, which are available for trading while still earning staking rewards. Actually, StaFi aims to solve the contradiction between Mainnet security and token liquidity in PoS consensus. StaFi is a decentralized protocol that empowers liquidity. It encompasses 3 layers—bottom, contract, and application layers. FIS, the StaFi, Return On Investment (ROI) over the last year was -1%. However, similar projects had %104 ROI growth. Moreover, StaFi underperformed compared to the top 1500 projects in the market ( ROI rate was about 3,542%) and one-month ROI was 41% negative.
Is StaFi A Good Investment?
Is StaFi A Good Investment?
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Introduction

StaFi (FIS) is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through StaFi and receive rTokens in return (rToken is short for reward-Token), which are available for trading while still earning staking rewards. StaFi aims to solve the contradiction between Mainnet security and token liquidity in PoS consensus. The token holders are staking through staking contracts built in StaFi protocol, and then get alternative tokens (rToken , such as rXTZ, rAtom, rDot, etc.), rTokens are tradable, and it can get staking rewards from an original chain at the same time.

When users stake PoS tokens through StaFi, they will receive an equal amount of rToken in return.

To maintain Stafi protocol, Stafi Validators (SV) and Stafi Special Validators (SSV) are essential. 

  • SVs are responsible for the security of the whole protocol
  • SSVs guarantee the safety of all Staking Contracts

How Does StaFi Works?

StaFi is a decentralized protocol that empowers liquidity and encompasses 3 layers, including:

  • Bottom: The bottom layer is mainly based on a blockchain system established by Substrate. You can learn more about Substrate here.
  • Contract: The contract layer support creating a variety of Staking contracts. The token holder can Stake through Staking Contract, which is consistent with the inflation incentives obtained by the ordinary Stake. 
  • Application layers: tThis layer supports third-party Stafi-based APIs or customized APIs to create a decentralized bonds asset trading market for rTokens to circulate, transfer, and trade on the Stafi protocol.

StaFi will be connected to Polkadot as a parallel chain and shares the underlying consensus of Polkadot. The Polkadot guarantees main security and performance. The main layer is the contract level, and the contract code guarantees the ownership of the Stake token.

StaFi uses a distributed key storage protocol to ensure the security of the Stake address through multi-signatures.


Financial Analysis

FIS, the StaFi, Return On Investment (ROI) over the last year was -1%. However, similar projects had %104 ROI growth. Moreover, StaFi underperformed compared to the top 1500 projects in the market ( ROI rate was about 3,542%) and one-month ROI was 41% negative. Therefore, based on the ROI rates, the StaFi yielded negative returns over the last month.

Currently, there is no data available on Github for this project. Usually, projects which are transparent with their work have a higher success rate. On the other side, a great capable marketing team directly influences the success of any project. According to recent data, the number of FIS’s Twitter followers had %44 growth and the number of Telegram members was relatively constant, with only 9% increase, over the last year.

Based on the historical data, the FIS’s price and market cap rank were really volatile over the last year. Currently, the liquidity score is 41% below the market's average score, which makes it harder to sell FIS if the market is falling. Also, the market capitalization is about $36 million worth and it is ranked 794, by the time of writing this post. In May 2021, the price of FIS started to decrease to lower prices. In June 2021, the FIS's value was about $0.59, which was the lowest price since the lunch date, and then in the first half of August 2021, there was an increase in price, reaching $2.82. However, from the beginning of September, this coin experienced another downward trend in price.

You're saying that I should invest in StaFi?

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