pSTAKE introduces liquid staking to the Cosmos ecosystem, allowing ATOM and XPRT holders to engage with DeFi on a deeper level, similar to Lido and Anchor Protocol. The increasing dominance of proof-of-stake protocols over the proof-of-work model since the launch of Bitcoin has been one of the most significant transitions in the cryptocurrency ecosystem since the launch of Bitcoin , primarily due to the PoW model’s energy requirements and growing concern over its environmental impact.
As more projects adopt the PoS paradigm, a new breed of protocols has evolved that focuses on providing liquid staking alternatives, allowing token holders to access the value of their staked tokens while still getting a return for locking their assets on the network. pSTAKE Finance is one of these platforms, and here’s a quick look at how it differs from comparable protocols and its long-term objective of bringing value to the proof-of-stake paradigm.
Ongoing Developments
The Persistence protocol, which supports Cosmos, Ethereum and other Tendermint-based chains, includes the pSTAK project. Persistence’s long-term goal is to build an ecosystem of multi-chain Web3 goods that will increase global liquidity and simplify value exchange.
In November 2021, the project received a boost after completing a $10 million initial investment round with investors including as Three Arrows Capital, Galaxy Digital, Coinbase Ventures, and Alameda Research. The money received during the seed round were utilized to provide the reserves needed to establish liquidity staking on the protocol and ensure that users could participate with the platform.
pSTAKE has offered liquid staking for Cosmos and XPRT, which have yearly yields of 12 percent and 32 percent, respectively, since its start. Users that deposit ATOM or XPRT on the protocol receive stkATOM or stkXPRT in return, which may be used for a variety of DeFi services, such as borrowing and lending. The pSTAKE protocol now has a total value locked (TVL) of $48.63 million, according to statistics from Defi Llama.
