Persistence: Promoting Innovation in Liquid Staking and Re-staking within the Cosmos Ecosystem

Persistence is one of the important application chains in the Cosmos ecosystem, being the first to enable IBC, CosmWasm, and liquid staking modules. By deeply engaging in POS and liquid staking related products, Persistence has built a comprehensive liquid staking and re-staking architecture for the Cosmos ecosystem.

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

Overview of the Persistence Ecosystem

According to official data, the total locked value of the Persistence ecosystem is ( TVL ), reaching 14.78 million USD. The IBC trading volume in the last 30 days was 15 million USD, with an average transaction cost of less than 0.005 USD.

Data shows that Persistence has established 121 channels with 44 other zones in the Interchain network, demonstrating a high degree of interconnectivity. 74.7% of the tokens ($XPRT) in the network are in stake status, with an annualized staking yield of 16.7%. This high staking rate usually indicates that the network has strong security and participation.

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 a total of 4,955 transactions, including 616 IBC transactions. There were 932 active addresses, with 86 IBC active addresses. Notably, the IBC inflow continues to exceed the outflow, indicating that more and more value is flowing into Persistence and participating in staking.

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 via IBC, providing convenient, secure, and efficient technical support for liquid staking.

Persistence connects 54 Cosmos application chains through IBC, enabling trustless communication, transfer, stake, and restake of tokens, laying a solid ecological foundation for staking and restaking in the Cosmos ecosystem.

Using Interchain Accounts (ICA) to achieve ICA Liquid Staking allows 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 main roles: validators and delegators. Delegators can choose which validator nodes to delegate to when staking. Validators are responsible for running the hardware and blockchain applications based on the Cosmos SDK, reaching consensus with other validators, and proposing and validating new blocks on the chain.

If a validator engages in misconduct, the staked deposits of the delegators may be reduced. For example, if a validator accidentally or maliciously goes offline, the staked deposits of the delegators may be reduced by 0.1%; if the validator engages in extremely malicious behavior such as double signing, the staked deposits may be reduced by 5%.

This mechanism prevents malicious behavior through economic incentives and potential penalties, with validators and delegators sharing 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. After staking is completed, the pSTAKE protocol will issue the corresponding staking rights tokens to the user's wallet, for example, staking ATOM will yield stkATOM.

pSTAKE provides an automatic compounding feature. Taking stkATOM as an example, users' daily staking rewards (ATOM) are automatically staked to earn further rewards. This means that the amount of staked ATOM corresponding to each stkATOM will increase, allowing users to receive more ATOM when they un-stake. Therefore, users' staking rewards are reflected in the increasing ratio of stkATOM/ATOM.

When users cancel their stake, they need to wait 21 to 25 days; they can also pay a 1% fee for a lightning unstake. When reclaiming the stake, the corresponding stk assets will be destroyed.

stake derivatives

Persistence and the Cosmos ecosystem have launched various stk asset derivatives. For example, in certain DEX products, users can directly swap stkATOM for ATOM without the need to unstake or pay additional fees. Moreover, the combination of stk assets and native assets can also add liquidity in DEXs, yielding higher returns.

$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 has been developed by 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. These agencies include well-known blockchain and crypto security auditing firms, global security research and consulting companies, smart contract security auditing agencies, DeFi vulnerability bounty platforms, and blockchain security real-time monitoring networks.

Re-staking

Persistence is building a Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens into Persistence through specific platforms. This enables users to restake assets and secure additional chains while earning extra rewards.

The re-staking module of Persistence supports staking requests for various assets, including staking equity tokens, stablecoins, LP tokens, and more.

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. Stakers of different assets distribute rewards according to the reward weights of the assets, creating a community of shared interests, which is conducive to enhancing the security and decentralization of the Cosmos ecosystem.

Source of re-staking income

The tokens used by the user for re-staking will be locked and native tokens will be minted proportionally. These minted native tokens enter the staking module to be staked to validators in the role of delegators. The staking rewards obtained will be distributed to the corresponding stakers.

Summary

Persistence provides an effective and secure economic infrastructure for liquid staking and re-staking in the Cosmos ecosystem. Through an innovative re-staking scheme, Persistence establishes an economic alliance for re-stakers, which not only enhances mutual security but also increases the level of decentralization within the re-staking alliance of the Cosmos ecosystem. This model is gradually deepening Persistence's influence in the Cosmos ecosystem, bringing greater security, asset liquidity, and participation to the entire ecosystem.