Maximizing liquid staking yield and security. That’s the mission of the Persistence One ecosystem since its inception in 2019.
In this quest, Persistence One enables multiple DeFi legos to exist and flourish, all built on top of the base layer of liquid staking, powered by pSTAKE Finance, the multi-chain liquid staking protocol for Cosmos and BNB Chain.
This blog explores the relationship between pSTAKE Finance, the first layer of generating yield, and Persistence One. We also dive into the positive impacts and benefits pSTAKE Finance’s liquid staked tokens (LSTs), stkToken, have on the overall ecosystem.
Persistence One and pSTAKE Finance Liquid Staking
The Persistence One Liquid Staking and Restaking Ecosystem is built on the fundamental philosophy that Staking is the fixed income of crypto. Staking Rewards of Proof-of-Stake chains are often described as the ‘risk-free’ rate in crypto as they serve as the base yield for a token.
However, they come with drawbacks like locked liquidity and slashing risk. Liquid Staking protocols like pSTAKE Finance overcome these hurdles by issuing liquid LSTs, accruing staking rewards, and using them to generate additional yield in DeFi.
By issuing LSTs for leading ecosystems like Cosmos Hub (ATOM), Osmosis (OSMO), dYdX (DYDX), Stargaze (STARS), and more coming in the future, pSTAKE Finance sits as the first layer of yield in the Persistence One Ecosystem’s quest to maximize yield.
| LST protocol | Liquid Staking Support | LST protocol’s token | Layer 1 chain deployed on | Layer 1’s native token |
| Lido | ETH | LDO | Ethereum | ETH |
| Jito | SOL | JTO | Solana | SOL |
| Benqi | AVAX | BNQ | Avax | AVAX |
| pSTAKE | ATOM, OSMO, DYDX, STARS, HUAHUA | PSTAKE | Persistence One | XPRT |
Benefits of the Liquid Staking yield layer on Persistence One
Now that the relationship between pSTAKE Finance, the dApp, and Persistence One, the Layer 1 Ecosystem, is evident, let’s look at the impact of stkTokens on Persistence One.
By launching liquid staking for various leading Cosmos Ecosystem, pSTAKE Finance is a leading force of on-chain and off-chain traction for the Persistence One Ecosystem.
Increasing Liquid Staking TVL
stkTokens are native to and issued on the Persistence One chain, directly adding to the chain’s overall TVL.
On-chain TVL currently boasts $15.8M, with 54.26% coming from pSTAKE Finance issued LSTs for ATOM, OSMO, DYDX, STARS, and HUAHUA.
With pSTAKE Finance’s mission to become the biggest Cosmos liquid staking provider, a market worth $100B+ is present in front for the taking.
As pSTAKE Finance expands and scales liquid staking, it will continue to be the base layer of increasing on-chain TVL on Persistence One.
Growing On-chain Liquid Staking Activity
The option to liquid stake multiple tokens like ATOM, OSMO, DYDX, STARS, HUAHUA with pSTAKE Finance attracts a diversified user base to interact with the Persistence One chain.
The adoption of pSTAKE Finance LSTs leads to an increase in critical on-chain parameters like daily users, daily transactions, new user onboarding, and transaction fees going to XPRT, the native token of the Persistence One chain, stakers.
More Usage -> More On-chain Activity -> More Distribution -> Repeat.
As pSTAKE Finance expands and scales liquid staking, it will continue to be an essential layer of increasing on-chain activity on Persistence One.
Flourishing environment for Liquid Staking finance (LSTfi)
The existence of LSTs by pSTAKE Finance on Persistence One enables the creation of products that can provide additional yield.
Dexter, the liquidity hub of Persistence One, is a Decentralized Exchange (DEX) that builds liquidity for LSTs by pSTAKE Finance, Stablecoins, and other tokens.
By building liquidity for stkTokens, Dexter not only helps fulfill the actual premise of liquid staking but also provides LSTfi yields for providing liquidity.
To accomplish the ecosystem’s mission of maximizing yield, new teams and projects will deploy other DeFi legos, including money markets, vaults, and more, on Persistence One with pSTAKE Finance’s LSTs at heart.
As pSTAKE Finance expands and scales liquid staking, it will continue to be the base layer of additional LSTfi yield on Persistence One.
Closer alignment between Persistence One and other Ecosystems
By offering Liquid Staking for leading Cosmos Ecosystems, pSTAKE Finance helps onboard users and token holders of these ecosystems to Persistence One, expanding the power of Persisters’ community.
Liquid Staking includes staking tokens on a chain and using staked LST representatives in DeFi.
This leads to more economic security for a particular chain’s ecosystem while creating additional DeFi utility and liquidity for these ecosystems. Greater adoption of liquid staking also leads to trade flourishing with IBC volumes between Persistence One and other ecosystems.
All thanks to pSTAKE Finance, which Persistence One powers.
As pSTAKE Finance expands and scales liquid staking, it will continue to be the base layer for growing the community and strengthening the alignment of Persistence One.
A match made on Persistence One
pSTAKE and Persistence One work harmoniously and complement each other by facilitating LST issuance as the bedrock of the decentralized liquid staking economy on Persistence One.
The Persistence core-1 chain is the home of pSTAKE in Cosmos and provides economic security through XPRT and all the technical support required for LST issuance.
pSTAKE Finance contributes to increased on-chain activity and TVL, flourishing LSTfi environment, and closer alignment for Persistence One with broader Cosmos.
Win-win.