Proposal to Launch a New Liquid Collateralized Derivative Solution for EVM Compatible Chains

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

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. This proposal aims to enhance the security and composability of the target chains through the issuance of rToken on them. In this article, we discuss the key features of this proposal and their benefits to the DeFi ecosystem.

What Is the New EVM LSD Scheme?

The new EVM LSD scheme proposed by StaFi involves the direct deployment of rToken Relay to the target contract layer. This enables the Relay to perform operations directly, leading to a significant reduction in cross-chain communication overheads. The main feature of this scheme is that rTokens will be directly issued on the target chain, eliminating the need for users to engage in cross-chain communication to obtain rTokens.

How Will rTokens Enhance the Security and Composability of EVM Compatible Chains?

rTokens are Ethereum ERC-20 tokens backed by their underlying assets. They are designed to be compatible with any EVM compatible chains. The direct issuance of rTokens on the target chain will offer several benefits to the DeFi ecosystem. Firstly, it will enhance the security of the target chain by providing a collateralized derivative solution. Secondly, it will increase the composability of the DeFi ecosystem by enabling the easy integration of rTokens into DeFi on the target chain.

Benefits of the New EVM LSD Scheme

The proposal to launch a new liquid collateralized derivative solution for EVM compatible chains offers several benefits to the DeFi ecosystem. Firstly, it provides a collateralized derivative solution that enhances the security of the target chain. Secondly, it offers composability benefits by enabling the easy integration of rTokens into DeFi on the target chain. Finally, it offers significant reduction in cross-chain communication overhead, leading to faster and more efficient DeFi operations.

Conclusion

The new liquid collateralized derivative solution proposed by StaFi for EVM compatible chains is a significant milestone in the evolution of the DeFi ecosystem. It offers several benefits, including enhanced security, increased composability, and significant reduction in cross-chain communication overheads. The implementation of this proposal will undoubtedly spur the growth and development of the DeFi ecosystem.

FAQs

Q: What are rTokens?
A: rTokens are Ethereum ERC-20 tokens backed by their underlying assets. They are designed to be compatible with any EVM compatible chains.
Q: What is the significance of the rToken deployment in the new EVM LSD scheme?
A: The direct issuance of rTokens on the target chain will eliminate the need for cross-chain communication, leading to significant reduction in overhead.
Q: How will the new EVM LSD scheme benefit the DeFi ecosystem?
A: The new scheme offers several benefits, including enhanced security, increased composability, and significant reduction in cross-chain communication overheads.