The liquid staking hub for PoS Assets is launching pSTAKE’s ATOM liquid staking solution on its chain on the 8th of November 🚀.
What is Persistence
Persistence is a Tendermint-based specialized Layer-1 platform powering an ecosystem of DeFi applications focused on unlocking the liquidity of staked assets. Persistence’s global aim is to bridge the gap between the regular economy and the crypto industry by providing investors with access to tokenized products and services. On the one hand, companies will obtain affordable loans in digital assets, while investors will be able to lend funds to businesses at higher interest rates.
Furthermore, this will simplify and expedite the financial and asset exchange processes between the parties. The Persistence development team leverages blockchain to fulfill their goals, which has aided in the implementation of various critical platform functions, including:
- Liquid staking for PoS Assets.
- Instant cross-chain transfers utilizing IBC for the Cosmos Ecosystem and various cross-chain platforms for other Blockchain ecosystems.
- Tokenization of traditional assets into non-tokens (fungible NFTs), such as invoices, letters of credit, bills of lading, gold, silver, oil, and other commodities.
- Decentralized trading for asset and stablecoin exchange.
- Tokenized assets are used as collateral in autonomous debt markets.
Persistence also created the Persistence Software Development Kit (SDK) for developers, which specifies and standardizes methodologies for developing platform-based applications. Furthermore, these modules enable not only the creation of new blockchain applications based on them, but also their integration into current systems.
XPRT – The Heart of Persistence Ecosystem
XPRT is the work token for the Persistence ecosystem, bootstrapping ecosystem applications to propel network adoption, and securing the core infrastructure through staking. XPRT stakers can participate in governance to contribute to the long-term success of the ecosystem.
XPRT accrues value from the ecosystem’s financial activity through multiple avenues including gas fees, fee-sharing with ecosystem application, hub-routing, etc.
XPRT is a deflationary token with a genesis supply of 100,000,000 XPRT and a maximum supply of 403,308,352 XPRT. Initial inflation will range from 25–45%, with the target of 35% achieved at a 66.7% bonding ratio. Inflation halving happens every two years, and the maximum supply cap is expected to be reached by the year 2035.
pSTAKE, developed by Persistence, is a liquid staking protocol that unlocks the liquidity of staked assets. Stakers of PoS tokens can now stake their assets while maintaining the liquidity of these assets.
pStake offers liquid staking for the following networks: BNB, Ethereum, Persistence, and now Cosmos.
Liquid staking with pStake provides the following benefits:
- Zero illiquidity – Receive stkAssets to maintain liquidity of otherwise locked PoS Asset when you stake
- Maximise your capital efficiency – Generate the highest yields with staking rewards & various stkAsset DeFi opportunities, all while securing the underlying PoS chain
- Redemption time? – Skip unstaking and unbonding process of your Pos Asset by directly swapping stkAsset from a liquidity pool
Why pStake migrates stkATOM from Ethereum (ERC20) to Persistence core-1
What does migration mean?
The transfer of underlying staked ATOM from the Cosmos MPC bridge wallet address of the current implementation to the new staking wallet address within Cosmos.
Why is migration necessary?
In the absence of migration, there will be two existing stkATOMs that won’t be fungible, as the underlying implementations, validator delegations, custody mechanisms, etc., would be different. The migration will overcome the previously mentioned drawbacks of stkATOM (ERC-20) and empower our users with an IBC-native stkATOM that leverages the Cosmos tech stack and the vibrant ecosystem.
|Parameter||stkATOM(ERC-20)||Post Migration stkATOM|
|How it works||User deposits ATOM with pSTAKE to mint 1:1 pegged pATOM. User interacts with Ethereum Smart Contract to burn pATOM which issues 1:1 pegged stkATOM||User deposits ATOM with pSTAKE to mint stkATOM on the Persistence Core-1 chain|
|Token Model||Dual Token||Single token Exchange Rate (cToken)|
|Custody||Semi-custodial because of the MPC pBridge||Non-custodial solution powered by Inter-Blockchain Communication, Interchain Accounts, and Interchain Queries|
|Security Risks||Protocol-level and MPC pBridge||Protocol-level|
|DeFi Utility||Very limited||Persistence’s role as the liquid staking hub along with integrations with established protocols in Cosmos will drive high utility to stkATOM|
|Validators||6 MPC pBridge and PoS Validators||More decentralized—to be defined but will still be at least 3-4 times larger than the validator set of stkATOM(ERC-20)|
|Staking Rewards||13,5% APR||Will match rewards on-chain|
|Rewards’ Claim||Manual claim of staking rewards in the form of pATOM||No need to claim rewards as they will directly accrue to stkATOM and will be auto-compounded|
|Chain Fees||Very high||Very low|
|Security Measures||Audited by ConsenSys Diligence, Oak Security, and Trail of Bits||Audited by Halborn at launch with more audits in future, Bug-Bounty Programs and On-Chain tracking|
The migration of stkATOM (ERC-20) to stkATOM will transfer merits such as enhanced UX, low-cost and fast transactions, higher security, IBC interoperability, and more excellent utility to our existing users.
Start liquid staking in few steps
1️⃣ Stake your PoS ASSET
Select a non-zero amount of tokens to stake through pSTAKE’s robust validator set & earn staking rewards.
2️⃣ Receive stkASSET
Get your stkASSET token which increases in value relative to your staked amount each epoch from staking rewards
3️⃣ Participate in DeFi
Put your stkASSET to work with various opportunities in the DeFi tab on pSTAKE’s application
In summary, liquid staking is a game changer for the POS ecosystem and Persistence seems to be at the forefront of this change and onboarding big blockchains.