rTokens were never meant to be mere receipt of assets staked. Yes, these synthetic derivatives are required when you attempt to claim your staked assets, but they open a window of opportunities popular on De-Fi protocols: farming.
StaFi is creating a rToken universe that creates the right environment for these synthetic derivatives to be utilized for a diverse array of benefits. It’s the liquid staking future that the crypto space has been waiting for.
Yield farming opportunities aren’t new in the crypto space, but the rToken twist is a novelty, even for an innovative digital space. Thanks to the plethora of partnerships bagged by StaFi, rTokens holders can derive maximum benefit from these synthetic derivatives while the original asset accrues reward.
Here are some of the farming opportunities available for rToken holders:
Yearn.finance is one of the pioneers of yield farming, but the DeFi protocol isn’t slowing down anytime soon. Yearn finance recently unveiled new vaults to the public. One of such vaults is the crvRETH vault, a rToken vault.
Through the crvRETH vault, holders of rETH can deposit the rToken and earn a reward on their synthetic derivative asset. The crvRETH vault has a net APY of 7.76% though this interest is subject to change.
This is another De-Fi project that has been in existence for quite a while. Following the approval of the proposal regarding rETH listing on Curve Finance, holders of rToken can farm CRV and FIS on the De-Fi protocol.
By staking your rETH on Curve Finance, you earn rewards in CRV and FIS. The cumulative of both earnings often amount to a decent APY. That’s excluding the rewards from staking the original asset.
StaFi has great plans for its synthetic derivatives, and this necessitated the De-Fi protocol’s immense support to budding projects that create an enabling environment for its rToken to thrive.
The interest-bearing tokens DEX, WraFi is one such project. WrapFi recently had the Genesis launch of its WRA tokens, and rToken holders were given a seat at the table.
rToken holders can farm WRA using synthetic derivatives. Unlike the farming opportunities on Curve and Yearn, all the existing rTokens can farm WRA.
About 9,000,000 WRA tokens were set aside for this yield farming exercise. To get involved, you have to add liquidity to the relevant pool on Uniswap V2.
The WRA farming exercise lasts for just 3 months from commencement. So if you’re yet to farm WRA using your rToken, do so right now. However, keep in mind that the WRA tokens remain vested for 6 months.
More Farming Programs Expected
StaFi believes in breathing life into its synthetic derivatives, and yield farming programs have been identified as a viable candidate for this role. rToken holders can expect to stake their interest-bearing tokens in more yield farming programs as liquid staking continues to gain ground.
Why Are These Farming Opportunities Vital?
The farming opportunities available to rToken holders aren’t only novel, they’re helpful. Though many prefer swing trading their synthetic derivatives for profit, the available rToken farming programs are much better from a ROI perspective.
Unlike regular yield farming programs, the rToken variant doesn’t suffer the curse of impermanent loss. So if you are wary about the status of staked LPs, it’s not a problem with rToken farming. And always remember, you still earn rewards on the original asset staked.
The farming opportunities available to rToken add value to these synthetic derivatives and props up the concept of liquid staking. It won’t be long before synthetic derivatives become a norm in the De-Fi space.
Follow StaFi official website for more information.