Delegation proposal to bootstrap the adoption of rMATIC

StaFi is a DeFi protocol that unlocks the liquidity of staked assets and StaFi recently launched rMATIC - the staking derivative for staked MATIC on its platform. Considering rMATIC is the first staking derivative of Polygon, this proposal is to bootstrap the adoption of rMATIC.

Background
Staking derivative is a new concept, we call it rToken in StaFi. Staking derivative is backed by staked assets, and the holder of the staking derivative owns the rights of redemption and reward that generates from the inflated Proof of Stake consensus. StaFi creates the use cases for rToken, like liquidity on DEX and lending protocols, so that staker can trade rToken instead of staked asset instantly while earning the staked reward.

rMATIC is backed by staked MATIC and attached staking rewards, staker can stake MATIC through StaFi APP and get rMATIC in return. rMATIC is an interest-bearing asset, it can be integrated into Polygon DeFi and provide a new narrative to the project. Like rMAITC can be integrated into AAVE as collateral, with the reward generated, rMATIC suppliers can gradually lower down the risk of being liquidated or they can borrow more assets. Except for the lending protocol, rMATIC can be used to hedge against the price fluctuations and used to leverage staking APY, all of the exploration would benefit Polygon community and MATIC holders.

Issue
Considering the staking contract of MATIC is built on Ethereum, while MATIC is widely used in Polygon, MATIC in these 2 Ecosystems is not in a same token standard, staked MATIC should be ERC20, while transferring Polygon MATIC to ERC20 MATIC need to wait 7days, so staking MATIC is not that easy, but as for a staking project, staking rate is important, rMATIC could somehow help increase the staking rate, which provide security to the network, but also bring adoption to the Polygon.

StaFi has launched a minted incentive campaign to the MATIC staker, now 108,925 MATIC have been staked through StaFi App, the minted volume is still limited because of lacking awareness in the Polygon community(Current we have an AMA in Polygon community)and rMATIC needs to be bootstrapped with the initial TVL. We would like to keep educating the community and keep incentivizing the stakers, but also we would like to bootstrap the initial TVL.

With this proposal, we want to propose bootstrapping rMATIC adoption by delegation from the Polygon foundation at the initial stage. By doing so, more rMATIC will be minted, staked value of rMATIC will be increased, so with more quantity of rMATIC, adoption from the Polygon DeFi will become easier.

Proposal
Stake 5,000,000 MATIC through StaFi rMATIC APP

Details
Foundation stakes 5M MATIC by using the StaFi APP, MATIC Token will be delegated to the validators on Polygon. StaFi is building an algorithm to select the validator and make sure it can maximize the delegation reward. Also we have built a decentralized delegation strategy for Polygon validators, and this strategy could help make the Polygon validators eco much more decentralized. So the staking from Polygon Foundation could also help diversify the validators group and limit the staking power of the top giant validators.

Security
StaFi has built an underlying structure to support the scalability of staking derivatives, the relay module, which communicates with the original chain like Polygon is fully audited. rETH rATOM and rMatic are all built on the relay module. The bridge between Ethereum and StaFi is fully audited as well, check out the Audit in “Reference”.

StaFi has collaborated with Tidal, an insurance protocol built on Polygon, to initially launch a $1M cover for rETH; other rToken contracts will be covered soon.

Follow-up
5M MATIC staked will generate around 5M rMATIC, which creates $7M staked value in StaFi(total staked value of StaFi is now $102M), it will bootstrap the rMATIC adoption on Polygon. We have launched a rMATIC/MATIC pool on QuickSwap, stakers can trade rMATIC directly. StaFi will launch an incentive campaign for LP on QuickSwap to provide more liquidity for the rMATIC holder.
Proposals for listing rMATIC on AAVE(Polygon), Curve(Polygon) will be followed up.

Reference
1.StaFi: https://www.stafi.io/

2.StaFi rMATIC App: StaFi

3.rMATCI Minted Incentive Campaign:

4.StaFi AMA in Polygon Community: https://twitter.com/0xPolygonTech/status/1438408228937744384

5.StaFi rMATIC Solution: rMATIC Solution - Stafi_Protocol

6.The underlying structure of staking derivatives: stafi-bootstrap/REP-Stafi_Token_Relay-19_04_2021.pdf at master · stafiprotocol/stafi-bootstrap · GitHub

7.The Bridge between Ethereum and StaFi Audit Report: stafi-bootstrap/REP-Stafi-21_01_2021.pdf at master · stafiprotocol/stafi-bootstrap · GitHub

8.StaFi&Tidal Cooperation: https://medium.com/stafi/tidal-has-launched-the-stafi-insurance-pool-on-its-platform-270d8e370a44

9.StaFi Staked Value: StaFi