Liquid Staking and Re-Staking Innovation: Exploring the Impact of Persistence on the Cosmos Ecosystem

Persistence is one of the first Cosmos application chains to implement IBC, CosmWasm, and liquid staking modules. By deeply cultivating products related to POS and liquid staking, it has built a liquid staking and re-staking architecture for the Cosmos ecosystem.

On December 5, 2023, the Cosmos community voted to allocate 600,000 ATOM for liquid staking growth for pSTAKE. pSTAKE shares 15% of the liquid staking revenue with Cosmos Hub.

Persistence Ecosystem Overview

According to official data, the TVL of the Persistence ecosystem is approximately 14.78 million USD, with an IBC trading volume of 15 million USD in the past 30 days, and an average transaction cost of less than 0.005 USD.

Data shows that the Persistence.one region has established 121 channels with 44 other regions in the Interchain network, indicating that it is a highly interconnected node.

74.7% of the network token $XPRT is staked, a higher staking rate usually indicates that the network has higher security and participation. The annualized yield for staking is 16.7%.

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, Persistence's IBC trading volume reached $260,800, with 4,955 transactions, including 616 IBC transactions. There were 932 active addresses and 86 IBC active addresses. IBC inflow continues to exceed outflow, which may indicate that 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 in Rust. DApps developed using the CosmWasm framework can operate across chains via IBC, achieving cross-chain interoperability for applications.

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

Utilizing Interchain Accounts (ICA) to achieve ICA Liquid Staking allows an account on one chain to perform operations on another chain, enhancing the efficiency and flexibility of staking and re-staking.

Cosmos Ecosystem Staking and Network Security

In the Cosmos ecosystem, liquid staking involves two roles: validators and delegators. Stakers can choose the validator nodes they delegate to. Validators run hardware and blockchain applications based on the Cosmos SDK to reach consensus with other validators, propose new blocks on-chain, and validate them.

If a validator exhibits negative behavior, the delegator will face corresponding penalties. Unexpected or malicious downtime of the validator may lead to a 0.1% reduction of the delegator's stake deposit. Extremely malicious actions such as double signing may result in a 5% reduction of the stake deposit.

Cosmos ecosystem liquid staking prevents malicious behavior through economic incentives and potential penalties. Validators and delegators share responsibilities to maintain network efficiency and security while earning token rewards.

pSTAKE stake

pSTAKE provides a simple staking process for the Cosmos ecosystem. Users only need to choose the token to stake and the chain to stake on. After staking is completed, the pSTAKE protocol issues the corresponding staking rights tokens to the wallet, such as receiving stkATOM for staking ATOM.

automatic compound interest

Taking stkATOM as an example, the user's daily staking yield is ATOM, which will automatically enter the stake and continue to earn returns. After the yield enters the stake, the staked ATOM corresponding to each stkATOM increases, allowing users to obtain more ATOM when they unstake. Therefore, the user's staking yield is reflected in the proportional growth of stkATOM/ATOM.

Unstake

Users need to wait 21 to 25 days when canceling their stake; they can also pay a 1% fee for a lightning withdrawal of the 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. In certain DEX products, users can directly swap stkATOM for ATOM without needing to unstake or pay additional fees. The stk assets combined with native assets can also add liquidity in the DEX, yielding higher returns.

$XPRT stake

Persistence, as an independent blockchain, also requires staking to enhance network security. Users can conveniently stake $XPRT on the Persistence official platform or certain wallets.

stake security

Persistence and pSTAKE are both open-source programs, which is an important guarantee of security. The pSTAKE program involves 72 developers, with the most recent code submission made two days ago.

Persistence, pSTAKE collaborates with multiple security organizations to provide comprehensive support for the security of staking and liquid staking, including well-known blockchain and crypto security audit firms, global security research and consulting companies, smart contract security audit firms, DeFi vulnerability bounty platforms, and real-time monitoring and alert networks for blockchain security.

Re-staking

The Persistence team is building Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens into Persistence across multiple platforms. This enables them to restake assets and secure additional chains while earning extra rewards.

The Persistence re-staking module supports staking requests for various assets, such as staking equity tokens, stablecoins, LP tokens, etc.

Re-staking Alliance

The re-staking module of Persistence is developed based on the Alliance module. Alliance is an open-source Cosmos SDK module that enables assets to be staked from one blockchain to another, facilitating inter-chain staking to allow blockchains to form mutually beneficial relationships.

Re-stake the alliance to share staking rewards. The stakers of various assets distribute rewards according to the asset's reward weight. The reward weight for $XRPT is 1, while the reward weights for other assets are determined and adjusted through decentralized governance.

This staking asset alliance reward distribution mechanism creates an alliance from the staked assets, forming a community of shared interests, which is conducive to enhancing the security and decentralization of the Cosmos ecosystem.

Re-staking yield sources

The tokens used by users for re-staking will be locked and native tokens will be minted proportionally. The minted native tokens enter the staking module to be staked to validators in the role of delegators. These staking rewards are distributed to various types of stakers, serving as the source of revenue from Persistence's re-staking and further enhancing the security and liquidity of the Cosmos ecosystem.

Summary

Persistence provides an effective and secure economic infrastructure for liquid staking and re-staking within the Cosmos ecosystem. Through liquid staking products, Persistence is gradually deepening its influence in the Cosmos ecosystem, bringing higher security, asset liquidity, and ecological participation to the ecosystem.

Through an innovative re-staking program, Persistence has established an economic alliance for re-stakers. This alliance forms a cross-chain community of interest among re-stakers, which not only enhances security guarantees among each other but also improves the degree of decentralization of the Cosmos ecosystem within the re-staking alliance.