On November 25th, 2020, Young Liam, CEO of StaFi, was live at the Matic Network Community telegram AMA Session, to provide the Matic community with insights on why delegators should stake with the StaFi node on the Matic Network. The session was moderated by Delroy, one of the Matic Network Telegram Community moderator.
In order to ensure clarity to my readers, this article has been divided into three segments; the first segment, gives full account of the questions asked by the moderator of this AMA session (Delroy), the second segment, gives account of the questions asked by Matic community members, while the third segment gives account of the closing statements.
Delroy — Hey Young Liam, welcome to Matic. I hope you’re doing well and staying safe. And thanks for joining us today on the AMA. This is a series of AMA’s that we are doing to ensure our community gets know the Validators that run the Matic Network.
Hello again, Matic community, thank you for having me Delroy
Delroy — Likewise. So Liam, would you like to give an introduction to the community about Stafi Protocol?
StaFi 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. FIS is the native token on StaFi Chain. FIS is required to provide security to the network by staking, pay for transaction fees on the StaFi chain, and mint & redeem rTokens.
Currently we are running a validator on Matic network, name of the node is Wetez. Wetez is a staking service provider. and Wetez is a professional team in the PoS ( Proof of Stake) field, We provide staking as service for over 20 projects(Like Matic, Tezos, Cosmos, Polkadot, etc) . For institutions, we provide the most secure and efficient node management service; For individual investors, we provide convenient delegation service and tools. Wetez has been working in the staking space for nearly 3 years, and we will continue to empower individual rights what PoS consensus brings in the future.
We have experiences on staking services, and Wetez will play a role as a Matic consensus protector, and StaFi will facilitate staker to unlock liquidity of staked Matic in the coming future.
Delroy — Wow! That’s a great introduction. And I do remember about the stake drop that you guys did earlier this year on the Matic Network. The whole community was buzzing about it.
Yea, drop campaign is a gift for the great partner. 300,000 FIS were dropped to the Matic Stakers
Delroy — Wow! That’s really cool. So thanks for letting us know the different networks you are already running nodes on. However, when it comes to Matic, what made you choose Matic Network to operate a node on?
We have been providing more than 20 kind of staking services for staker, Mainnet like Matic, Tezos, Cosmos, Kava, Harmony, Polkadot/Kusama, Oasis, Akcash, Near, Chainlink, Solana, Chainx,Irisnet, IOST, Wanchain, Icon, Aion, Pchain, IoTx, etc.
There are many networks still in the testnet stage, many potential projects have our support as well. We are always looking for potential projects and hope to grow with them. The current Staking awards may not cover our costs, so we hope that the project that we cooperate with will have a relatively large growth space in the future. Matic is the great project we followed months ago. We are really excited to be a delegated validators on Matic network.
For the reason why we choose Matic network? StaFi and Wetez have a great connection with Matic, we held 2 AMAs on staking topic with Matic team before, those discussions were fruitful , and we think there are many things we can work together, it is not only included being a validator on Matic network, but also we can help staker unlock their staked asset in the future, staker can get the staking reward while get the liquid staking at the same time. We are building the infrastructures for the liquid staking, let’s see.
Definitely , Matic is a great and solid project in layer 2 space, deeper collaborations will come soon, we start from validators, we know validating, and Wetez can be a best protector for Matic network.
Delroy — Whoa! The prospect of liquid staking sound promising. Also, thank you for the detailed response. I see that you guys have a lot of experience in operating nodes over multiple networks. Is that Challenging for you?
Yea, it is a big challenge, but thanks to the our experience, we know validating, and we do investigation before providing staking service for staker, to make sure we know every unique staking mechanisms .
There are 2 things we should consider, one is the cost/return and the other is the slash condition.
We must avoid to be slashed with any reasons, if it happens, that will be harmful to the network also we have a painful loss of deposit, we have to monitor the server and make sure its uptime, and try to help staker earn much rewards as we can
Delroy — Excellent answer Liam! That way you have managed to tell us about your exhaustive experience that you guys hold in this industry which is great for us because you are already part of our network. And we look forward to working with you guys not only on our validator segment but also on multiple other platforms
Experienced validator need a stable network as well, definitely, Matic is one of that kind.
Delroy — Thanks Liam. This means a lot. Knowing the fact that you guys have been operating nodes on so many networks, how do you ensure that you maintain efficiency of each and every node that your operate?
After years of development, we already have a very mature management mechanism, including mature monitoring tools, mature upgraded method of severs, mature downtime management of servers, etc. We will bring our experience to Matic to achieve effective management.
In addition, we have been working in the Layer 2 field for a long time. Wetez is one of the first validator of the Loom network. We run node for more than 1 year, so it is similar for us to run a node in a Layer 2 network.
That’s the key I think
Delroy — And I think you’re right. Being in this industry for so long will bring a mature understanding of all aspects of the industry. And I just checked your Node performance on our Dashboard and you’re running at almost 100% Performance. That basically just states everything that you’ve said about Maturity.
Yea, server, monitor, tools, etc. all we build is for the staking, including staking derivatives.
Delroy — That’s fantastic. So boiling down to the most important question of the day, In terms of delegation, why should delegators stake on your node? What would be the benefits for them?
Delegating stakes to an experienced staking service provider is your best option, many holders do not have time and skill on running node, you can delegate to Wetez, and then sit back and get rewards without any concerns.
Through the years of running node, Wetez is facing 0 slash issue, and with higher uptime, it means we create reward for staker as much as we can, which means we are providing a better security for the network. Also StaFi is in deeper collaboration with Matic, we both are looking for Matic staking derivatives in the future, we do need support from Matic communities.
Delroy — I suppose that is good news for Delegators who will delegate to your node as they will also have the opportunity for staking derivates through Stafi. Community please take note. So Liam, what do you think about Commission Rates? What do you feel like would be an attractive commission rate for Stafi and for other validators as well?
We usually set 5%~10% as we did on other projects,it depends on the cost of node operation, but we will decrease if all validators set a lower commission. We don’t want to initiate a price war or participate in a price war, we do think we can provide a valuable solution for Matic network and grow with Matic.
Delroy — Absolutely! Thanks for sharing this information Liam. I had a question about Node security but I think we already covered that in the questions above. So I’m pretty sure you must have delegators / people coming to you with concerns about delegating to a node. How do you address these concerns and would there be anything that you would like make aware to community when it comes to delegation on nodes such as you?
I think it is the history of node operation on projects. Delegators can check your validator’s history on the staking industry, and check if there are any slash cases, how does uptime perform, etc.
Also you can read more resources they wrote, their speech/presentation, and etc. of course if they have contributed to the stake industry already.
That’s the point.
Delroy — Since you guys boast such a good reputation in the industry, what would you say to up and coming validators from the community? Any words of encouragement for them on how do they approach the idea of running nodes on a network?
Yea, with time fiies, PoS consensus is widely adopted, to secure and decentralized new PoS network, we do need new validator to join into staking industry. New validator should know well about the design, and do more research, then you can start to run node, but also keep in mind, the slash is really harmful, make sure you know every details of it.
Delroy — Absolutely! Slashing and Uptime are 2 important factors for running a node efficiently.
Community Question 1 — How does someone mint rMATIC? And how am I incentivized to do so?
StaFi will launch Staking Contract for Matic, Matic staker can staking Matic via SC then get rMatic in return, we build infrastructure for rMatic, like trading and lending, etc. Also we will launch a stakingdrop campaign for the minting as well, stay tuned for further ANN.
Community Question 2 — DeFi is the new frontier and already buzzing in 2020, what roles do you play in innovativeness of DeFi and what’s your approach to DeFi and ultimate DeFi solutions?
We are bring a new asset into Defi, cuz rToken is Yield-generating asset, different from the asset that exsits in the Defi, logo built with rToken gonna be interesting. Let’s see.
Community Question 3 — The financial markets, cryptos market … all fell due to the covid-19 epidemic. Does this affect your project development plan?
Thanks for asking, actually we developers are all good, we are distributed, and stay and work at home, so far so good, hoping you are well.
Community Question 4 — Are you afraid that hackers are stalking and attacking your system? Which technology is behind is responsible for protecting your platform.
Actually yes, open source projects have the same concerns. To make sure its security, audit is needed and bug bounty is a best way to find out the potential issues.
Community Question 5 — Low liquidity is one of the main problems with the DeFi Project, so what are you going to do about it? Do you have a liquidity provider program? What benefits for liquidity providers?
We dont create asset, staking derivative is backed by staked assets, so liquidity for staking derivatives will have liquidity from the original one.
Community Question 6 — Tell us about your plans for 2021, what are you currently working on, and are you going to expand the list of big exchanges?
We divided our rToken stardard into 4 categories , substrate based project, cosmos SDK project, Ethereum based project, and others, 2021 is the year of building standard
Community Question 7 — Where did you get the inspiration for this unique project idea of Stafi Protocol ? And what influence will we have on the crypto industry due to the project?
Controversy between token liquidity and mainnet security of PoS consensus, we have rich experiences in staking industry, we know what the pain point is.
Delroy — Alright Liam, thanks for answering all mine and the community’s questions today. It was an excellent session and you gave brilliant answers. It was great having you today for the AMA. I hope we can do this again sometime in the future.
The AMA has now ended. Thanks for all your questions Community. If you’d like to know more about Stafi Protocol please join their Telegram channel.
Thanks Delroy. Thank you Matic community, and thank you for having me again.