Persistence Deeply Cultivating Liquid Staking and Re-staking Innovations in the Cosmos Ecosystem

Persistence one($XPRT) is one of the application chains in the Cosmos ecosystem that enabled IBC, CosmWasm, and liquid staking module (LSM) earlier. By continuously optimizing POS and products related to liquid staking, it has built a complete liquid staking and re-staking architecture for the Cosmos ecosystem.

On December 5, 2023, the Cosmos community voted to approve a proposal to allocate 600,000 ATOM for the growth of liquid staking for pSTAKE. According to the agreement, pSTAKE will share 15% of the liquid staking revenue with Cosmos Hub.

Persistence Ecosystem Overview

According to official data, the Persistence ecosystem TVL reached 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. The data shows that the Persistence.one zone has established 121 channels with 44 other zones in the Interchain network, demonstrating its high interconnectivity.

74.7% of the network token ($XPRT) is staked, with a high staking rate reflecting the network's 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 maintain the decentralization and security of the network.

In the past 24 hours, the IBC trading volume of Persistence reached $260,800, with 4,955 transactions, including 616 IBC transactions. There were 932 active addresses, with 86 IBC active addresses. It is noteworthy that IBC inflows continue to exceed outflows, indicating that more and more funds are flowing into Persistence and participating in staking.

Technical Support

Persistence supports the CosmWasm framework, allowing developers to write secure and interoperable smart contracts in Rust language. DApps developed based on CosmWasm can operate across chains through IBC, providing convenient, secure, and efficient technical support for liquid staking.

Persistence connects to 54 Cosmos application chains through IBC, enabling trustless communication, transfer, staking, and liquid staking of 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 restaking.

Cosmos Ecosystem Staking and Network Security

The liquid staking in the Cosmos ecosystem includes two roles: validators and delegators. Delegators can choose the validator nodes they want to delegate to when staking. Validators run hardware and blockchain applications based on the Cosmos SDK, reaching consensus with other validators to propose and validate new blocks on the chain.

If a validator exhibits negative behavior, their delegators will face corresponding penalties. Unexpected or malicious offline actions by the validator will result in a 0.1% reduction of the delegator's stake deposits, while extreme malicious behavior such as double signing will lead to a 5% reduction of the stake deposits.

This mechanism prevents malicious behavior through economic incentives and potential penalties, with validators and delegators jointly maintaining network efficiency and security while earning token rewards.

pSTAKE stake

pSTAKE provides a simplified staking process for the Cosmos ecosystem. Users only need to select the token to stake and the chain they are on to proceed with the staking. Once the staking is completed, the pSTAKE protocol issues the corresponding staking rights tokens to the wallet, such as stkATOM for staking ATOM.

automatic compound interest

Taking stkATOM as an example, users' daily staking rewards (ATOM) will automatically enter the stake, continuing to earn rewards. This means that the staked ATOM corresponding to each stkATOM increases, allowing users to receive more ATOM when they unstake. Therefore, users' staking rewards are reflected in the growth of the stkATOM/ATOM ratio.

Unstake

Users need to wait 21 to 25 days when canceling their stake; they can also pay a 1% fee to instantly release 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. For example, in DEX products, stkATOM can be directly exchanged for ATOM without the need to unstake or pay additional fees. stk assets can also be combined with native assets to add liquidity in DEX, resulting in higher yields.

$XPRT stake

As an independent blockchain, Persistence also requires staking to enhance network security. Users can conveniently stake $XPRT on the Persistence official site or in the Keplr wallet.

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 and pSTAKE collaborate with multiple security firms to provide comprehensive support for the security of staking and liquid staking, including Halborn, PeckShield, Certora, Hexens, Notional, Trail of Bits, Solidified, ConsenSys Diligence, Oak Security, Immunefi, and Forta.

Re-staking Innovation

Persistence is building a Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens into Persistence through pSTAKE, Stride, and Quicksilver, enabling asset re-staking and protection of additional chains while earning extra rewards.

Re-staking Alliance

The re-staking module of Persistence is developed based on the Alliance module, enabling assets to be staked from one blockchain to another, forming a mutually beneficial relationship. After different asset stakers join the re-staking asset alliance of Persistence, they can receive re-staking rewards and $XPRT.

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

Source of Re-staking Earnings

The tokens used by users for re-staking will be locked and minted into native tokens in proportion, with the minted native tokens entering the staking module to be staked to validators as a delegator. These staking rewards will be distributed to re-stakers, further enhancing the security and liquidity of the Cosmos ecosystem.

Summary

Persistence is gradually deepening its influence in the Cosmos ecosystem through its liquid staking and re-staking solutions, bringing higher security, asset liquidity, and participation to the ecosystem. Its innovative re-staking solution establishes an economic alliance for re-stakers, which not only enhances mutual security but also improves the degree of decentralization of the Cosmos ecosystem chain within the re-staking alliance.