🔹 Staking on the NEAR network
When you hold NEAR, you can stake it with validators.
Interest: You receive annual rewards (around 8%–12% depending on the provider).
Disadvantage: Assets are locked during the Staking period, meaning you cannot use them for trading or DeFi until they are unlocked.
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🔹 Solve the lock problem: rNEAR from Rhea Finance
rNEAR = liquid staking token
This means when you stake NEAR through Rhea Finance, instead of being locked, you receive the token rNEAR.
rNEAR represents staked NEAR + future interest.
This token is tradable and can be used in DeFi protocols.
Interest:
1. Dual income:
You retain your rights to Staking rewards.
Use rNEAR in DeFi platforms (loans, liquidity provision, Yield Farming).
2. High liquidity: You can sell rNEAR at any time without waiting for an unbinding period.
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🔹 Examples of using rNEAR in DeFi
1. Borrowing and lending:
Deposit rNEAR as collateral to obtain stablecoins like USDC or USDT.
This allows you to keep Staking rewards + have liquidity for trading.
2. Liquidity Providing:
Add rNEAR to liquidity pools (e.g., rNEAR/NEAR or rNEAR/USDC).
You earn trading fees + additional rewards from the platform.
3. Yield Farming:
Using rNEAR in farming protocols to achieve compound yields (Compound APY).
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🔹 Risks
Smart contract risks: Any error or hack in DeFi protocols could cause losses.
Price volatility: If the price of NEAR drops, the value of rNEAR will also be affected.
Liquidity risks: Sometimes it is hard to sell rNEAR in large amounts without price slippage.
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✅ Summary
NEAR is rapidly evolving in the field of Liquid Staking and DeFi Integration.
rNEAR provides the opportunity to benefit from Staking rewards + open liquidity at the same time.
Best strategy: Diversify assets between regular Staking and Liquid Staking (rNEAR) to reduce risks.
