The Liquid Staking Solution rIRIS Proposed By StaFiHub

Governance
#1

Overview

Hi IRISnet community, StaFiHub (https://www.stafihub.io/) is a Cosmos SDK built project developed by StaFi protocol to provide Liquid Staking Derivative SDK solution for Cosmos Eco projects. And we want to propose a liquid staking solution called rIRIS (rIRIS Solution) for IRISnet’s native token $IRIS, based on StaFiHub’s Liquid Staking SDK.

What’s rIRIS Solution?

rIRIS solution developed on StaFiHub’s Liquid Staking SDK will help IRISnet community to stake their $IRIS tokens to earn the staking rewards from the IRISnet Tendermint network, while still enjoying the liquidity of their staked $IRIS tokens through the voucher token called $rIRIS.

The steps for users are very simple:

  1. Stake $IRIS tokens through StaFiHub;

  2. Get the $rIRIS tokens which represent your staked assets and attached staking rewards.

What’s $rIRIS Token?

$rIRIS token is the staking derivative issued by StaFiHub when users stake their $IRIS tokens through StaFiHub.

$rIRIS token has the following features:

  • Staking Reward Bearing: The rToken value will keep increasing due to the staking rewards generated.
  • Transferable Through IBC: The rToken could be transferred at any time to any IBC chains in Cosmos.
  • Tradable: The rToken could be traded on any Cosmos Eco supportive DEXes including rDEX( developed by StaFiHub) or Osmosis.
  • Redeemable: The rToken could be used to redeem the corresponding native tokens and staking rewards at any time without permission.

Why IRISnet Community Needs rIRIS?

  1. For $IRIS token holders:
  • Great Liquidity: There will be no need to worry about the liquidity problem caused by the 3 week unbonding period. rIRIS App users could always trade rIRIS tokens to gain the liquidity at any time they want.
  • Easy to get the maximized staking rewards: No need to learn the Tendermint mechanism any more. Users only need to follow 2 or 3 simple steps to stake IRIS through StaFiHub, which will automatically select the best validator to delegate by the profit maximization strategy.
  1. For The Network Security:
  • Higher Staking Ratio: rIRIS solution will help solve the liquidity of staked assets, thus improving the willingness of the community to stake.
  • Higher staking ratio means higher security of the IRISnet network.

rIRIS Solution Design

rIRIS solution design is mainly based on the StaFiHub Liquid Staking SDK built by StaFi protocol to provide liquid staking solutions for Cosmos Eco projects very quickly and easily. Please check the introduction of SDK Integrations.

The core of the rIRIS solution design includes the following elements:

  1. Staking Pool: A pool is a multisig account of IRISnet chain to gather rIRIS user’s staked IRIS tokens and invoke staking related calls such as Bond, Unbond and Claim on the IRISnet to earn more tokens. This multisig account will be controlled by StaFiHub, IRISnet Foundation and other parties in the IRISnet community.

  2. LiquidityBond: LiquidityBond is the entry point for users to obtain rIRIS on StaFiHub. Users can submit their transfer voucher to mint rIRIS tokens.

  3. LiquidityUnbond: LiquidityUnbond is the entry point for users to redeem their IRIS tokens on StaFiHub.

  4. Exchange Rate of rIRIS: Exchange Rate of rIRIS is used to calculate how many rIRIS tokens to mint for a user’s LiquidityBond and how many IRIS tokens should be unbonded and transferred back. It is initialized to 1 and calculated as follows:

IRIS 1
IRIS 1941×102 20.1 KB

2 Likes
#2
  1. rIRIS Circulation Circle: We attach the following infographic to show the circulation of rIRIS tokens under the StaFiHub technical stack. You could see the interactions between IRIS staker, StaFiHub, IRISnet and other IBC gang chains.

IRIS 2
IRIS 2941×533 56 KB

rIRIS Staking Strategy

Based on the Tendermint consensus mechanism of IRISnet and the influencing factors of staking rewards, the rIRIS solution adopts the following staking rewards maximization strategy:

  1. Diversified delegation: The IRIS tokens deposited by the user will be distributed to several(N) mini staking pools. N will be based on the scale of the deposit. Each staking pool will then select several (M) validators for delegation by the profit maximization strategy, so as to reduce the slashing occurrence probability of a single node;

  2. Strictly select Original Validator candidates: The rIRIS solution will evaluate the performance data of original validator candidates from the metrics including online duration, slashing record, self-bond ratio, node identity, commission ratio, etc., to ensure that excellent validators with relatively low commission are selected.

  3. An automatic delegation strategy that maximizes staking rewards: The solution monitors OV’s on-chain data in real-time, such as commission ratio changes, commission volume ranking, slashing, off-line rate, and other indicators. This ensures that in each Era, the system selects the best OVs for delegation while simultaneously reinvesting profits.

2 Likes
#3
  1. Make a suitable balance between staker’s rewards maximization and IRISnet validators’ decentralization: StaFiHub wants to make a positive contribution to IRISnet’s validator eco to avoid the concentration of validator’s voting power. Therefore, rIRIS contracts will always monitor the top M+5 OV candidates’ staking power and re-rank the M+5 OVs according to the staking power from low to high in each epoch, then choose the lowest M validators as the official OVs to delegate.

IRIS 3
IRIS 3941×479 138 KB

Why StaFiHub

StaFiHub and StaFi team has rich experiences in liquid staking space since the start of 2019. StaFi is one of the earliest projects that are proposing the liquid staking innovations.

Now StaFi has issued 8 liquid staking derivatives with over 60 million USD TVL for the top adopted PoS chains like ETH2.0, Cosmos, Polkadot, Solana, etc.

Some achievements:

  1. StaFi’s rETH liquid staking solution for ETH2.0 is one of the six projects listed on Ethereum Foundation Website.
  2. And rETH token is also one of the few ETH staking derivatives listed on Curve.
  3. Total TVL hits [100 million] USD in October 2021.
  4. StaFi got the grants for rMATIC solutions from Polygon Foundations

Suggested Grants from IRISnet Community

Based on the past experience of the StaFi team, developing rIRIS solution is not difficult. The liquidity of rIRIS token is the most important part. Therefore, the StaFi team needs to work together with the IRISnet team to make rIRIS solution successful.

StaFiHub propose to get the following help from the IRISnet Community:

  1. Provide $10,000.00 USD valued $IRIS tokens for StaFi Core team as the rIRIS solution development grant (The Grant) to cover the related technical costs. All the $IRIS tokens received in The Grant will be staked into the rIRIS App.
  2. IRISnet Community sponsors at least 1 million USD valued liquidity for rIRIS and IRIS pair or rDEX, which is developed by StaFiHub and dedicated for trading liquid staking derivatives issued by StaFiHub;
  3. Provide marketing support for rIRIS solution and its liquidity with the implementation of marketing activities such as videos, tutorials, social media and the like.

StaFiHub’s Work and Co-incentive Plan

With the above grant from IRISnet Community, StaFiHub will:

  1. Design and develop the rIRIS solution which will be deployed on StaFiHub, a Cosmos SDK based chain developed by StaFi.
  2. Deploy a pool for $rIRIS and $IRIS trading pair on rDEX, an AMM DEX developed by StaFi and deployed on StaFiHub.
  3. Provide $FIS token incentives for the rIRIS DApp testnet to incentivize the community both from StaFi and IRISnet to participate in the testing.
  4. Work with IRISnet to provide liquidity farming incentives to bootstrap the liquidity for rIRIS trading pair on rDEX. As for the incentives, StaFi will provide $FIS tokens, and IRISnet will provide the $IRIS tokens.
  5. Provide the details to IRISnet regarding the rIRIS App and $rIRIS token trading pair, including the date of commencement, the domain on which the smart contract would be hosted and other such details which might help IRISnet in promoting the pool.
  6. Provide marketing support through the implementation of marketing activities such as videos, tutorials, social media and the like.
  7. Take part in the marketing efforts and activities with the other projects that are a part of the cohort to amplify the marketing effort.

Timeline and Future Work

  • Phase 1: rIRIS Testnet(in progress) [April - May 2022]
  • Phase 2: rIRIS Incentivized Testnet [May - June 2022]
  • Phase 3: rIRIS Mainnet Release and rDEX Listing [June - July 2022]
  • Phase 4: Initial DeFi Integrations in Cosmos Eco [Rest of 2022]
  • Phase 5: Ongoing Maintenance, Upgrades, and Further Work on Integrations [from 2023 onwards]

Conclusion

IRISnet is one of the important players in Cosmos Eco. StaFiHub hopes to work with the IRIS community to create a new user scenario for $IRIS tokens, and bring a brand new interest bearing assets to the IRISnet community.

Welcome to propose your suggestions and feedbacks to us below or email to support@stafi.o

2 Likes
#4

I’m looking forward to Iris liquid Staking in StaFiHub. Counting down to Mainnet! Tik tock- tick tock

#5

What’s the Iris validator list? How is it selected by the team?

#6

Is rDEX already live on StaFiHub? Can one use it?

#7

not yet, but it will be deployed soon.

#8

it will be selected due to the delegation strategy which you could see above. It is not selected by the team, instead it is selected by the algorithm.

#9

sorry about the typo in the “rIRIS Circulation Circle Under StaFiHub Stack” infographic.

‘Delegate Users’ IRIS to Terra validators’ should be
‘Delegate User’ IRIS to IRISnet validators’

#10

This is quite interesting.

$1.000.000 is roughly 40 million $IRIS, so roughly 20% of our community pool. It is quite the investment.

What is the experience with respect to other projects who have gone through this? How did it affect chain security? What did it do to liquidity of the project? What did it do to the token value?

#11

I have the same concern. This huge amount is far more beyond a simple staking cooperation. Like to understand more about the questions LeonoorsCrytoman raised above.

#12

Sadly no answers before going on chain…