pSTAKE, th liquid staking protocol, was launched on the Persistence Core-1 chain on January 12th, 2023, following the successful completion of the v6 upgrade. The launch of pSTAKE brought a new era of liquid staking to the Cosmos ecosystem, and in this retrospective, we will look at the launch’s impact over the past 30 days.
30 Days Retrospective of the pSTAKE Launch on the Persistence Core-1 Chain:
The pSTAKE launch was a significant milestone for the Cosmos ecosystem, as it marked the implementation of a liquid-staking module for ATOM on the Core-1 chain. The liquid-staking module induction on the Persistence Core-1 chain was part of the v6 upgrade. The upgrade also established an Inter-Blockchain Communication (IBC) channel between the Core-1 chain and the Cosmos Hub, facilitating seamless cross-chain transfers.
A detailed on-chain proposal of the upgrade can be found at https://www.mintscan.io/persistence/proposals/12.
One of the key outcomes of the pSTAKE launch was the ability to mint stkATOM on the Core-1 chain. Over the past 30 days, a total of 122,421 ATOM (worth ~$1.6M) have been minted, growing the staked value on the Cosmos hub. pSTAKE currently contributes 0.06% of the total staked ATOM.
The live minting numbers can be tracked here: https://www.mintscan.io/cosmos/account/cosmos13t4996czrgft9gw43epuwauccrldu5whx6uprjdmvsmuf7ylg8yqcxgzk3.
pSTAKE implemented a first-of-a-kind redemption pool mechanism, significantly improving the user experience. The redemption pool allows the users to redeem ATOM instantly without using pools on DEX or waiting for a 21-day unbonding period.
Over the last 30 days, 128 redemption transactions have been executed on the Persistence Core-1 chain.
Note: The redemption is subject to the availability of liquidity in the redemption pool.
The launch of pSTAKE has significantly impacted IBC activity on the Persistence Core-1 chain. In the past 30 days, there has been $6.2M in IBC volume and 7021 IBC transactions.
There was notable growth in the IBC monthly active users from 7% to 15.7% of Total Monthly Active Users (7839).
The most active IBC peers in send and receive connections are Osmosis Zone, Cosmos Hub, Crescent Hub, and Juno Network, respectively.
The launch of pSTAKE has also positively impacted user adoption of the Persistence Core-1 chain. The number of active wallets grew by 7%, which now stands at 36308, and the monthly active users have increased to 7839.
The net inflow of users has set a solid foundation for the new application launching on the Persistence Core-1 chain. The Persistence Core-1 chain adoption is expected to multiply with the launch of Dexter and Bamboo.
The increase in stkATOM liquidity has been a key factor in driving IBC volume on the Persistence Core-1 chain. The liquidity of stkATOM on the Osmosis Zone has reached $1.67M, while the liquidity on CrescentHub is $677k.
pSTAKE opted for an unconventional approach of incentivizing stkATOM/ATOM LPs in ATOM rather than PSTAKE or DEX native token. The approach aims at improving the user experience by eliminating the need to manage multiple tokens. The end-to-end journey for the ATOM staker should be only in ATOM.
pSTAKE is continuously working to improve the ecosystem further, and the team has already initiated the migration of ERC-20 stkATOM and stkXPRT to the Persistence Core-1 Chain. The team is also working closely with the Core-1 chain team to expand IBC channels/peers for growing stkASSETs adoption.
The growth in economic activity on the application layer of the Persistence Core-1 chain directly impacts the utility and adoption of XPRT. As dApps and other on-chain activities increase, the demand for XPRT increases, leading to a rise in market capitalization. This creates a positive feedback loop, where the growth in the utility of XPRT attracts more developers, users, and investors, leading to a further increase in on-chain activity and so on.
The launch of pSTAKE on the Persistence Core-1 chain is an excellent example. The launch has increased liquidity, user adoption, and IBC activity, all contributing to the chain’s economic activity growth.
Persistence is a Tendermint-based, specialized Layer-1 network powering an ecosystem of DeFi applications focused on unlocking the liquidity of staked assets. Persistence facilitates the issuance and deployment of liquid-staked assets, allowing users to earn staking rewards while participating in DeFi primitives, such as lending/borrowing and liquidity provisioning on DEXs.
Persistence aims to offer a seamless staking and DeFi experience for PoS (Proof-of-Stake) users and enable developers to build innovative applications around stkASSETs.
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