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StaFi Decides to Cut Fees to Improve Product Utilization

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It is reported that the liquid pledge derivative agreement StaFi has reduced the commission fee of its pledge derivative products from 19% to 10% to improve th…

StaFi Decides to Cut Fees to Improve Product Utilization

It is reported that the liquid pledge derivative agreement StaFi has reduced the commission fee of its pledge derivative products from 19% to 10% to improve the product utilization rate. Of the 10% commission, 5% will be allocated to the verifier, and the other 5% will be allocated to StaFi DAO Treasury. The distribution of the remaining 90% of Ethereum rewards will be determined by evaluating the ratio of the verifier’s capital investment to the user’s capital investment.

LSD agreement StaFi reduced the commission fee of its pledge derivatives from 19% to 10%

Interpret the above information:


The crypto platform StaFi has announced that it will be reducing the commission fees of its liquid pledge derivative agreement in a bid to increase its product utilization. The decision comes in the form of a reduction from 19% to 10% on commission fees, with the new split allocating 5% to verifiers and 5% to StaFi DAO treasury. With 90% of Ethereum rewards remaining, the ratio evaluation of verifier and user capital investment will determine the distribution.

StaFi’s liquid pledge derivative agreement is a new derivative product that targets the staking market. The platform offers users the ability to transfer their staked assets into its contract, which then issues a corresponding amount of derivative products that can be traded or transferred. The issuance of the derivative products through StaFi can help users to overcome the long lock-up periods that come traditional staking methods.

Reducing commission fees is a common strategy used by platforms to increase product utilization, and StaFi is no exception. The move to cut commission fees from 19% to 10% can be seen as an attempt to compete with other similar platforms in the market. The 90% of Ethereum rewards that remain after the fee reductions will be distributed according to the ratio evaluation of verifier and user capital investment.

The allocation of the reduced fees is also noteworthy. StaFi plans to distribute 5% of the fees to the verifier and the remaining 5% to their DAO treasury. The DAO treasury operates as a decentralized autonomous organization responsible for governing the StaFi ecosystem. With this decision, the treasury can obtain more control over the protocol’s development and adoption, which can create a positive impact on the platform long term.

In conclusion, the decision of StaFi to cut down its fees aims to increase product utilization and make its liquid pledge derivative agreement more competitive in the market. The allocation of the reduced fees will help strengthen the DAO treasury and give it more control over the platform’s growth. With this announcement, StaFi moves towards a more community-driven approach that can benefit its users and investors in the long term.

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