Persistence Staking On Atom
Liquid Staking Solution for ATOM: Empowering DeFi on the Cosmos Ecosystem
pSTAKE was the first liquid staking solution for $ATOM when stkATOM launched in 2021 on Ethereum due to the absence of active DeFi or liquidity in the Cosmos Ecosystem.
Fast forward to 2023, stkATOM is now back in a new IBC native version on the Persistence chain. stkATOM is on a mission to unlock liquidity and empower DeFi for staked $ATOM in the Cosmos Ecosystem.
💰 Staking Rewards and DeFi : PoS asset holders often face what is called the Staker’s dilemma – whether to stake their tokens or use them in DeFi. Those who wish to stake their tokens to earn staking rewards on a proof-of-stake blockchain must lock their capital, whereas those who deploy assets in DeFi forego staking rewards. Liquid staking solves this dilemma, providing a more secure chain and additional yield in DeFi. Staking and DeFi are possible with pSTAKE.
💻 How does pSTAKE work? With pSTAKE, you can securely stake your Proof-of-Stake (PoS) assets (e.g., $ATOM) to earn staking rewards and receive staked underlying representative tokens called stkASSETs (e.g., $stkATOM), which can be used to explore additional yield opportunities in DeFi. At present, pSTAKE supports liquid staking for the Binance Chain ($stkBNB), Cosmos ($stkATOM), Persistence ($stkXPRT), and Ethereum ($stkETH).
📈 Performance and Adoption : Since its launch on 12 Jan 23, approximately 127,000 ATOM (~$1.8M) have been staked on https://cosmos.pstake.finance/. With security, user experience, and utility embedded into stkATOM, pSTAKE will work towards making them the base asset of the Cosmos Ecosystem.
stkATOM’s Validator Set
stkATOM has the most extensive active validator set (62 launch validators) of any liquid staking solution for $ATOM. This was decided by the $PSTAKE governance based on parameters like commission, governance participation, uptime, etc.
Any future changes in the delegation mechanism & expanding the validator set will also be determined by the $PSTAKE governance.
stkATOM follows an exchange rate model that drives the relationship between ATOM and stkATOM, the value of stkATOM increases against ATOM in the background as it accumulates staking rewards.
It is non-custodial and leverages the Interchain suite (IBC, ICA, ICQ), opening up numerous opportunities for user experience improvements.
Lowest Fees On Liquid Staking In The Interchain
Another significant advantage of stkAtom are the super low fees:0% deposit/withdraw fee, 5% protocol fee, and 0.5% instant redemption fee.
This strikes the right balance between having the lowest fees on liquid staking your ATOM in the Interchain and the pStakeFinance protocol sustainability. Any associated fees can be changed at any given time through the $PSTAKE governance.
Security is a priority for pSTAKE. stkATOM has been fully audited by Halborn Security. An audity by Oak Security is in its final stages. pSTAKE will implement an additional on-chain tracking mechanism & also create a huge Immunefi bug-bounty.
The “Redeem Instantly” feature, unique on stkATOM, is worth mentioning.
Users with sufficient protocol liquidity can avoid the 21-25 days unbinding period by swapping stkATOM for ATOM on a DEX. Instead, they can use the pSTAKE UI to redeem ATOM instantly.
Here is how it works - https://twitter.com/pSTAKE_Cosmos/status/1623002043945299971?s=20&t=UBcmeXh8g287ogdB5jMHQA
stkATOM supports Keplr and Ledger at launch, with support for more software & hardware wallets like Cosmostaion, Leap, etc. coming soon.
stkATOM (ERC-20) is in the middle of a Migration to the Persistence chain. As part of the proposed Migration, all stkATOM(ERC-20) will be unbonded & corresponding stkATOM will be minted on the Persistence chain after a 21-day unbonding period.
The Migration tool overcomes UX hurdles with a single-click, seamless cross-chain Migration. All stkATOM(ERC-20) holders will be able to claim stkATOM on their Persistence address directly without losing out on any staking rewards. The Migration tool will also aid in deprecating stkATOM(ERC-20) over time.
In the absence of Migration, two existing stkATOMs will need to be more fungible due to differences in the underlying implementations, validator delegations, custody mechanisms, etc.
The Migration will address the shortcomings of stkATOM (ERC-20) and provide users a one-click seamless transfer to an IBC-native stkATOM that leverages the Cosmos tech stack and the vibrant ecosystem.
The migration of stkATOM(ERC-20) to stkATOM will benefit existing users with improved UX, low-cost and fast transactions, increased security, IBC interoperability, and utility.
Why liquid stake your ATOM with pSTAKE?
ATOM yields like never before
1-click liquid staking of ATOM with support for Keplr & Ledger (more coming soon)
Security audits from Halborn & Oak Security ensure a safe, secure, & solid experience
Minimal 5% fee, fast transactions, high rewards, & instant redemptions (only possible with pSTAKE)
The most extensive active validator set (62 validators) of any liquid staking solution for ATOM