StaFi Proposes A Liquid Staking Solution ‘rNEAR’ for $NEAR Stakers

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Hi NEAR Protocol Community, this is Blank from StaFi. We are excited to propose a liquid staking solution called ‘rNEAR’ for $NEAR stakers.

1. What’s rNEAR Solution

rNEAR, a decentralized liquid staking derivative issued by StaFi, will help $NEAR stakers enjoy the staking rewards with high liquidity.

The steps are very simple:

  1. Stake $NEAR through StaFi’s rNEAR App.
  2. Get the $rNEAR token which has following features:
  • rNEAR token is a synthetic staking derivative issued by StaFi when users stake $NEAR through the StaFi rNEAR App.
  • rNEAR token is anchored to the staked $NEAR assets and the corresponding staking rewards.
  • rNEAR token can be transferred and traded at any time.

2. What’s the benefit of rNEAR Solution

rNEAR App can help $NEAR stakers in the following aspects:

  • Support to stake any amount of $NEAR above 0.01.
  • Help automatically delegate to the best validators to generate maximized staking rewards.
  • Help minimize the slashing risks and losses.
  • No need to wait for 4 Epoches ( 52–65 hours) to have liquidity any more.

3.rNEAR/NEAR Exchange Rate

$rNEAR is a pool token, which means that its value will increase more than $NEAR token along with the staking rewards generated. Simply put, the exchange rate of $rNEAR against $NEAR will increase gradually.

How StaFi calculates the rNEAR and NEAR exchange rate:

  • When a user deposits $NEAR into the rNEAR contract, StaFi will calculate the amount of rNEAR to issue to the user based on the current exchange rate between NEAR and rNEAR. When a user holds rNEAR, StaFi will calculate the amount of redeemable $NEAR based on the real-time staking rewards.
  • The rNEAR exchange rate Ci grows with the increase in staking income, and it will always be over 1, which means 1 $rNEAR is always more valuable than 1 $NEAR.
  • The rNEAR/NEAR exchange rate is determined by the total number of $NEAR locked in the staking contract Qstk, the total number of redeemed NEAR Qred, the number of staking rewards Qrew, the number of slashes Qslh, the commission rate Rcom, the total number of rNEAR issued parameter M, and the total number of burnt rNEAR parameter N. The calculation formula is as follows:
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4. Technical Part

As a Staking Derivative of $NEAR, the aim of the rNEAR solution is to unlock the liquidity of staked $NEAR tokens.

After technical research, we have implemented a corresponding solution for almost each core technical component of rNEAR solution, paving the way to implement the complete rNEAR solution.

Function Description

  1. Stake. Stake $NEAR to StaFiChain’s contract to get $rNEAR token.
  2. Redeem. Burn $rNEAR token to get $NEAR token and the attached staking reward.

Technical Architecture

Please refer to rToken technical architecture, attached in the References, to find the details and structure overview of rNEAR solution.

Core Steps to Implement rNEAR

  1. Build multisig contracts.

    Though NEAR’s account module does not support native multisig-account type, it supports contract accounts which can be a pool of rNEAR. You can refer to the official example of Multisig-contract .

  2. Build a batch-transactions contract.

  3. Package a NEAR-Go-SDK.
    Though currently there’s no official Go-SDK for NEAR, its API supports JSON-formatted RPC so that we can package our own NEAR-Go-SDK which can be connected with NEAR protocol, and send transactions and receive corresponding request results.

  4. Build a Fully-NEAR-Go-SDK based on NEAR-Go-SDK.
    Satisfying Fully-NEAR-Go-SDK needs to have the following features：

    A. Could verify transfer transactions of $NEAR.
    B. Could invoke staking related calls of $NEAR including the following main actions:

    • Each Validator of $NEAR has its own contract where the staking related calls can be invoked.
    • $NEAR’s Epoch can be used as an Era of StaFi chain. An epoch equals 12 hours and the unbonding duration of $NEAR equals 3 epochs. ​​The unbonded $NEAR needs to be withdrawn after 3 epochs.
    • Reward of staking $NEAR is automatically restaked.

References

In order to help the NEAR protocol community better understand what’s StaFi and the technical architecture of StaFi’s liquid staking solution, we have provided the following links for your information:

  1. rToken Technical Paper - StaFi_Protocol

We are glad to have your feedbacks on our proposal :ear:

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Hey!

This is awesome, it’s already available as stNEAR and facilitated by Meta Pool, though:

https://metapool.app/

That being said, it’s always great to have more than one solution for something.

Perhaps this would be a good fit for a grant? Have you checked them out yet?

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Hi David, thanks for your reply. We would love to contribute and bring in a new kind of staking derivative for NEAR stakers.

rNEAR will have more composability with other staking derivatives, like rETH, rBNB, rATOM, rSOL, rMATIC, etc., issued by StaFi protocol.

Glad you like our proposal, and we will take a dive into the Grants Program. It will be highly appreciated if StaFi could have the grants from the NEAR protocol foundation to help facilitate the rNEAR solution .

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