Persistence One is bringing Restaking to Cosmos. Users will be able to deposit Liquid Staked Tokens (of ATOM, TIA, DYDX, etc.) by pSTAKE, Stride, Quicksilver, and Milkyway onto Persistence One to restake them and secure more chains starting with the Persistence Core-1 chain and earn additional staking rewards.
The introduction of a Restaking infrastructure enables the potential for the creation of LRTs (Liquid Restaking Tokens) that allow users to not only secure multiple blockchains at once but also continue to participate in DeFi using the liquid wrapped version of restaked tokens–LRTfi.
Persistence in the Cosmos
The Cosmos ecosystem has always been at the forefront of innovation, solving some of the most pressing challenges in blockchain networks. Most notably, the vision and accomplishment of an “Internet of Blockchains,” where different blockchains can maintain their sovereignty, process transactions quickly, and communicate with each other via the Inter-Blockchain Communication (IBC) protocol.
Cosmos also addressed scaling issues with customizable, modular chains using the Cosmos SDK. The result is that no single chain is overloaded, projects retain their individuality, but everyone is part of the larger Cosmos ecosystem.
Enter Persistence One, a pioneer that has not just been a part of the IBC journey from the start but has consistently been at the bleeding edge of innovation within the Cosmos ecosystem. What drives us? A liquid staking economy that’s innovative and serves as the foundation for our vision. And now, Persistence One is building the Restaking Infrastructure for Cosmos, powered by the Terra Alliance module. Users can bring LSTs like stkATOM, stTIA, milkTIA, stATOM, qATOM, and many more to restake them and secure additional chains starting with the Persistence Core-1 chain and earn additional XPRT staking rewards.
This isn’t just an announcement; it’s a leap toward a future where flexibility meets functionality in the Cosmos ecosystem. Get ready for Liquid Restaking next, where your assets are stored and set free to unleash their true potential. With Persistence One, the future isn’t just coming; it’s already here, and Cosmos just got a lot more exciting! 🚀
What is Restaking again?
Restaking is a mechanism where locked tokens, including LSTs, are restaked to secure other services and generate additional rewards.
Originally introduced as a groundbreaking concept on Ethereum by Eigen Layer, Restaking has rapidly emerged as one of the most dynamic sectors within the realm of staked and liquid-staked ETH use cases. At the time of this writing, Eigen Layer boasts an impressive Total Value Locked (TVL) that surpasses $4 billion, and several projects like Eigen DA, AltLayer, Near, Hyperlane, etc., have already leveraged or signaled to leverage its security. Empowered by EigenLayer, there exists a whole new Liquid Restaking Finance (LRTfi) landscape with protocols like Pendle, Etherfi, Renzo, KelpDAO, Eigenpie, etc, that allows for additional DeFi yields. The core principle of restaking is its capacity to enhance the crypto-economic security and yield of initially staked tokens.
In the world of Cosmos, the most prominent security consumers are app chains. Most chains overpay for their security with high native token inflation. For example, the Persistence core-1 chain has a 76.1% bonded ratio, much higher than the optimal ratio of 67% (2/3rds) to maintain sufficient security. What if we could leverage XPRT staking rewards to increase chain security and incentivize the liquid staking economy on Persistence One simultaneously? Sounds good, right? That’s Restaking for you.
LSTs like stkDYDX, stTIA, qATOM, and milkTIA can be Restaked on Persistence One to increase the chain’s economic security while offering Restaking yield from XPRT staking rewards. More Layer 1 security, more LST yields. These additional rewards may have slightly increased risks of slashing but relatively low risk compared to using LSTs in DeFi.
Benefits of Restaking on Persistence One
- Enhanced Security: Restaking of LSTs increases and diversifies the Persistence Core-1 chain’s economic security significantly, contributing to the overall robustness and resilience of the network.
- Dual Rewards System: When Restaking, users benefit from a unique rewards system. While they continue to earn rewards in the native token of their staked asset, they also receive a portion of XPRT staking rewards as an additional incentive.
- Increased Utility for Cosmos LSTs: The Restaking of LSTs increases the utility and value of these assets within Cosmos and in the Persistence One ecosystem.
- Encouraging Long-term Holding: This Restaking mechanism incentivizes users to hold and stake their assets for longer, aligning with our goal of fostering a stable and growing liquid staking economy.
- Cosmos LRTfi: Laying the Restaking infrastructure on Persistence One will empower other builders with novel use cases like Liquid Restaked Tokens (LRTs) and Liquid Restaking Finance (LRTfi) for Cosmos.
Liquid staking offers yield. Restaking offers trust. We’re excited to build the Restaking Infrastructure for Cosmos on Persistence One. This is a huge step in our mission to maximize liquid staking yield by building a liquid staking economy.— Mikhil Pandey
The Future of Restaking
Looking ahead, the introduction of Restaking on Persistence One is just the beginning. We’re on a mission to turbocharge this feature, diving deep into new assets and pioneering innovations in (re)staking and rewards mechanisms.
Playing on the bleeding edge in this industry, our ultimate goal is to create a staking infrastructure to continually enhance the user experience and provide maximum value to our community. The introduction of Restaking enables the potential for the creation of LRTs or Liquid Restaking Tokens that allow users to not only secure multiple blockchains at once, but also continue to participate in DeFi using the liquid wrapped version of restaked tokens.
While our expertise focuses on liquid staking, Cosmos is full of other exciting teams and projects. With our LSTs and the Restaking infrastructure, we intend to bring these projects closer to one another. Imagine an actual internet of blockchains, a cosmos where networks bolster each other’s defenses while retaining their individuality. A place where stakers transform into pivotal stakeholders of any project, rewarded with diversified interests and new DeFi opportunities while bolstering the ecosystem’s resilience. All of this, initially fuelled by liquid staked assets issued by pSTAKE.
Launching soon on testnet, we’re rolling out the red carpet for our users and Cosmonauts to leverage this new feature and enjoy the benefits of enhanced security and dual staking rewards. Stay tuned for more updates, and get hyped for what is to come!