An Introduction to Persistence One
Persistence is a liquid staking hub building an economy around PoS assets. The Persistence ecosystem has experienced tremendous growth alongside the Cosmos ecosystem
Persistence is a liquid staking hub building an economy around PoS assets. The Persistence ecosystem has experienced tremendous growth alongside the Cosmos ecosystem, leading to the creation of the Persistence Foundation & Persistence Labs to accelerate the ecosystem's long-term development.
Where It All Began
Persistence is a network of next-generation financial products that range from institutional to crypto-native use cases. Note: Persistence is a Momentum 6 portfolio company.
Its technology stack is designed to bridge DeFi and TradFi while still expanding the DeFi and NFT sectors with innovative solutions. The Persistence Ecosystem includes Proof-of-Stake, XPRT token, StakeDrop, and interNFT.
How It All Changed
Liquid staking has increased from a concept in 2020 to the center stage in 2022, and Persistence was a pioneer in developing liquid staking for the Cosmos ecosystem. Persistence embarked on the journey to become the liquid staking hub for the PoS ecosystem in early 2022.
The Persistence team concentrated on the Core-1 mainnet launch and key block explorer, wallet, and exchange integrations required to scale the ecosystem in 2021. The team's primary focus in 2022 and beyond will be to drive significant economic activity on the Persistence Core-1 chain.
October was a crucial month for the Persistence team, particularly in technology and development, with key innovations and upgrades for its future liquid staking products implemented.
Let’s Talk Proof Of Stake
The Tendermint PoS consensus algorithm is used to secure the Persistence chain, secured by a decentralized set of validators who collectively secure more than $700 million in assets. $XPRT is the governance token for the Persistence chain. It also acts as a ‘work token’ and is used to pay fees.
How Have They Incentivized Token Holders?
Token holders who stake their tokens to validators in the PoS ecosystem can earn up to 35% annual staking rewards for the first two years of staking $XPRT. As the economic activity of Persistence dApps grows, stakers earn more staking rewards, while validators receive additional incentives.
Persistence offers StakeDrop: a community-focused initiative to facilitate the distribution of XPRT tokens among token holders of 4 other prominent PoS networks (Cosmos, Terra, Kava & Matic) and, thus, accelerate the decentralization of the mainnet once launched.
10/ Cosmos, Kava, Terra, MATIC, IRISnet, Polkadot, and Tezos are the other seven prominent networks whose stakers will be able to participate in this StakeDrop:
How is the Persistence network empowering DeFi?
Users who stake their tokens on the PoS network face a locking period when they can’t access their funds. As a result, these locked assets can't be used for other things like borrowing, lending, or depositing into other DeFi protocols. This is where the Persistence network comes in:
Persistence provides a liquid staking solution called pSTAKE, which allows token holders of PoS networks supported by pSTAKE to generate 1:1 pegged ERC-20 stake representative tokens for their underlying PoS assets. With ecosystem products like pSTAKE aiming to be among the largest dApps in their respective domains, XPRT aims to be one of the top 100 assets (by market cap) in the industry.
pSTAKE grew multi-fold in 2022
- pSTAKE added liquid staking support for Ethereum (Beta)
- Partnered with Binance Labs to launch liquid staking for @BNBChain, and currently, stkBNB is the most integrated liquid-staked asset in the BNB ecosystem.
- pSTAKE for Cosmos (built on Persistence Core-1 chain) is deployment-ready and currently undergoing audits
- Determined the migration strategy for stkXPRT to Persistence Core-1 Chain
- pSTAKE TVL at peak crossed $50M (Majorly: stkATOM, stkXPRT)
- 7,500+ total users to date
Additionally, P1 will be launching stkATOM on the Persistence Chain very soon!
Persistence Core-1 Chain
The Persistence team has done an excellent job in advancing toward becoming a liquid staking hub:
- Increased the active validator set to 100 and maintained 80%+ (avg.) staking ratio
- Grew the network participants by ~2x (~45k wallets)
- Built an active community of 20k+ stakers
- Added Cosmwasm support and developed Cosmovisor environment for easier chain upgrades
- Designed modular liquid staking architecture to rapidly expand support for IBC assets and easier adoption of LSM by iqlusion, ICA, and ICQ
- Robust tooling for the Core-1 chain, including explorers, faucets, analytics – AllThatNode, Big Dipper, Cosmoscan, Smartstake dashboard, and many more
- Grew the IBC connection to 19 Hubs/zones
- Aligned closely with Cosmos Hub/Major IBC chains by adopting 118 coin-type and overlapping validator set
pStake recently added Cosmos Network support and will soon add support for other major PoS chains such as Ethereum 2.0, Polkadot, Solana, and others. Persistence's goal is to build on existing tools and be a driving force in DeFi, NFTs, and to become the leading liquid staking hub of the PoS space.
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