Persistence: Innovators of Liquid Staking and Re-staking in the Cosmos Ecosystem

Persistence is one of the earliest application chains in the Cosmos ecosystem to enable IBC, CosmWasm, and liquid staking modules. By continuously developing POS and liquid staking related products, it has built a complete liquid staking and restaking architecture for the Cosmos ecosystem.

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

Persistence Ecosystem Overview

According to official data, the total locked value of the Persistence ecosystem is ( TVL ), reaching 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 Persistence.one has established 121 channels with 44 other regions in the Interchain network, demonstrating its high connectivity. 74.7% of the tokens ($XPRT) in the network are in stake, with an annualized staking yield of 16.7%. A high staking rate generally indicates that the network has higher security and participation.

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, the IBC trading volume of Persistence reached $260,800, with a total of 4,955 transactions, including 616 IBC transactions. There were 932 active addresses, with 86 IBC active addresses. The IBC inflow continues to exceed the outflow, indicating that more and 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 using the Rust language. DApps developed based on CosmWasm can run 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, stake, and restake of tokens, laying the foundation for staking and restaking in the Cosmos ecosystem.

In addition, Persistence utilizes Interchain Accounts (ICA) to achieve ICA Liquid Staking. Interchain Accounts allow an account on one chain to perform operations on another chain, improving the efficiency and flexibility of staking and restaking.

liquid staking

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

If a validator exhibits negative behavior, its delegators will also face corresponding penalties. For example, if the validator accidentally or maliciously goes offline, the delegator's stake deposit will be reduced by 0.1%. If the validator engages in extremely malicious behavior such as double signing, the stake deposit will be reduced by 5%.

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

pSTAKE stake

pSTAKE provides a streamlined staking process for the Cosmos ecosystem. Users only need to select the token to stake and the chain they are on to proceed with staking. Once the staking is complete, the pSTAKE protocol will issue the corresponding staking rights tokens to the user's wallet, such as stkATOM for staking ATOM.

pSTAKE has an automatic compounding feature. Taking stkATOM as an example, the user's daily staking rewards (ATOM) will automatically go into staking, continuing to earn rewards. This means that the staked ATOM corresponding to each stkATOM will increase, allowing users to obtain more ATOM when they unstake. Therefore, the user's staking rewards are reflected in the increase of the stkATOM/ATOM ratio.

Users need to wait 21-25 days when canceling their stake, or pay a 1% fee for a fast release 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. For example, in certain DEX products, users can directly swap stkATOM for ATOM without the need to unstake or pay extra fees. Additionally, stk assets combined with native assets can also be added to liquidity on DEXs to earn higher yields.

$XPRT stake

As an independent blockchain, Persistence also requires staking to enhance network security. Users can conveniently stake $XPRT on the official Persistence 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 and pSTAKE collaborate with multiple security agencies 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 agencies, DeFi vulnerability bounty platforms, and blockchain security real-time monitoring and alert networks.

Re-staking Innovation

Persistence is building a Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens into Persistence for restaking, securing additional chains and earning extra rewards. Persistence's restaking module supports staking requests for various assets, including staking equity tokens, stablecoins, and LP tokens.

Liquid Staking Alliance

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

Re-staking alliance shares staking rewards, where stakers of various assets distribute rewards according to asset reward weight. This mechanism forms a community of interest with re-staked assets, which helps to improve the security and decentralization of the Cosmos ecosystem.

Re-staking yield source

After the tokens used by users for re-staking are locked, native tokens will be minted proportionally. These native tokens enter the staking module to be staked to validators in the role of delegators. The staking rewards obtained are then distributed to the original stakers. This mechanism is not only the source of re-staking rewards for Persistence but also further strengthens 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 innovative re-staking solutions, Persistence has established an economic alliance for re-stakers, forming a cross-chain community of shared interests. This not only enhances the security guarantees among participants but also increases the level of decentralization within the re-staking alliance of the Cosmos ecosystem, bringing greater security, asset liquidity, and participation to the entire ecosystem.