Innovators of Liquid Staking and Re-staking in the Cosmos Ecosystem: Persistence

Persistence is one of the first application chains in the Cosmos ecosystem to utilize IBC, CosmWasm, and liquid staking modules. By deeply engaging in POS and liquid staking related products, Persistence has built a complete liquid staking and restaking architecture for the Cosmos ecosystem.

On December 5, 2023, the Cosmos community voted to approve an important proposal to allocate 600,000 ATOM for the growth of liquid staking for pSTAKE. In return, pSTAKE will share 15% of the liquid staking revenue with Cosmos Hub.

Persistence Ecosystem Overview

According to official data, the total locked value of the Persistence ecosystem is ( TVL ), reaching 14.78 million USD, with an IBC trading volume of 15 million USD in the last 30 days and an average transaction cost of less than 0.005 USD. The data shows that Persistence has established 121 channels with 44 other regions in the Interchain network, highlighting its high interconnectivity.

The staking rate of the network token $XPRT reaches 74.7%, with an annualized return of 16.7%. This high staking rate usually indicates that the network has a high level of security and participation. The infrastructure of Persistence consists of 6 nodes and 100 validators, working together to ensure the decentralization and security of the network.

In the last 24 hours, the IBC trading volume of Persistence reached $260,800, with 4,955 transactions, of which 616 were IBC transactions. There were 932 active addresses and 86 IBC active addresses. It is worth noting that IBC inflows have consistently exceeded outflows, indicating that more and more value is flowing into Persistence and participating in stake.

Technical Support

Persistence supports the CosmWasm framework, allowing developers to write secure and interoperable smart contracts using the Rust language. DApps developed using the CosmWasm framework can run across chains via IBC, achieving cross-chain interoperability for applications and providing convenient, secure, and efficient technical support for liquid staking.

Persistence connects to 54 Cosmos application chains via IBC for trustless communication, token transfers, staking, and liquid staking, laying the ecological foundation for staking and liquid staking in the Cosmos ecosystem.

Implement ICA Liquid Staking using Interchain Accounts (ICA). Interchain Accounts allow an account on one chain to perform operations on another chain, enhancing the efficiency and flexibility of staking and restaking.

liquid staking

In the Cosmos ecosystem, liquid staking involves two roles: validators and delegators. Validators run hardware and blockchain applications based on the Cosmos SDK to reach consensus with other validators, proposing and validating new blocks on the chain. Delegators can choose the validator nodes to delegate to when staking.

If a validator exhibits negative behavior, the delegators of the validator node will face corresponding penalties. Minor violations may result in a reduction of 0.1% of the stake deposit, while severe violations such as double signing may lead to a reduction of 5% of the stake deposit.

pSTAKE stake

pSTAKE provides a simple staking process for the Cosmos ecosystem. Users only need to select the staking token and the chain to stake on, and they can proceed with the staking. After the staking is completed, the pSTAKE protocol issues the corresponding staking rights tokens to the user's wallet, such as stkATOM for staking ATOM.

pSTAKE has implemented an automatic compounding feature. Taking stkATOM as an example, users earn daily staking rewards in ATOM, which are automatically staked to continue earning rewards. This means that the amount of staking ATOM corresponding to each stkATOM gradually increases, allowing users to receive more ATOM when they unstake.

When a user cancels their stake, they need to wait for 21 to 25 days; they can also pay a 1% fee to instantly un-stake. When retrieving the stake, the corresponding stk assets will be destroyed.

stake derivatives

Persistence and the Cosmos ecosystem have launched more stk asset derivatives. For example, in DEX products, stkATOM can be directly exchanged for ATOM without the need to unstake or pay additional fees. The stk assets combined with native assets can also add liquidity in DEXs to achieve higher yields.

$XPRT stake

As an independent blockchain, Persistence also requires staking to enhance network security. Users can conveniently stake $XPRT on the official Persistence site or in the Keplr wallet.

Stake Security

Persistence and pSTAKE are both open-source programs, which is an important guarantee of security. The pSTAKE program has 72 developers involved in its development, maintaining active updates.

Persistence collaborates with multiple security agencies to provide comprehensive support for the security of staking and liquid staking, including well-known blockchain and crypto security audit firms such as Halborn, PeckShield, Certora, and global security research and consulting company Trail of Bits.

Re-staking

Persistence is building the Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens into Persistence, restake their assets, and secure additional chains while earning extra rewards.

The re-staking module of Persistence is developed based on the Alliance module and supports staking requests for multiple assets. The re-staking alliance shares staking rewards, and the stakers of various assets allocate rewards according to the reward weight of the assets.

The source of the yield from re-staking comes from the native tokens minted proportionally after the user's staked tokens are locked, which are then staked to validators in the role of delegators. This mechanism further enhances the security and liquidity of the Cosmos ecosystem.

Summary

Persistence provides an effective and secure economic infrastructure for liquid staking and re-staking in the Cosmos ecosystem. Through its innovative re-staking program, Persistence establishes an economic alliance for re-stakers, which not only enhances mutual security but also improves the level of decentralization of the Cosmos ecosystem chains within the re-staking alliance.