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

Persistence is one of the first application chains in the Cosmos ecosystem to enable IBC, CosmWasm, and liquid staking modules. The project is dedicated to developing products related to POS and liquid staking, building a complete liquid staking and re-staking architecture for the Cosmos ecosystem.

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

Persistence Ecosystem Overview

According to official data, the TVL of the Persistence ecosystem has 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 Persistence has established 121 channels with 44 other regions in the Interchain network, demonstrating its high interconnectivity.

74.7% of the tokens in the Persistence network are staked, with an annual yield of 16.7%. Its infrastructure consists of 6 nodes and 100 validators, ensuring 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 are 932 active addresses, with 86 active IBC addresses. It is worth noting that IBC inflows continue to exceed outflows, 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. Through IBC, Persistence connects 54 Cosmos application chains, enabling trustless communication, transfer, stake, and re-stake of tokens.

In addition, Persistence utilizes Interchain Accounts (ICA) to achieve ICA Liquid Staking, enhancing the efficiency and flexibility of staking and restaking.

liquid staking

In the Cosmos ecosystem, liquid staking involves two roles: validators and delegators. Validators are responsible for running hardware and blockchain applications based on the Cosmos SDK, while delegators can choose to delegate tokens to specific validator nodes.

If a validator exhibits misconduct, the staked deposits of the delegators may be reduced. This mechanism prevents malicious behavior through economic incentives and potential penalties, thereby maintaining network efficiency and security.

pSTAKE stake

pSTAKE provides a streamlined staking process for the Cosmos ecosystem. Users only need to select the token they wish to stake and the chain they are on to complete the staking. After staking is completed, users will receive the corresponding staking rights tokens, such as stkATOM for staking ATOM.

An important feature of pSTAKE is automatic compounding. Taking stkATOM as an example, users' daily staking rewards (ATOM) will automatically enter the stake, continuing to earn rewards. This results in an increase in the staked ATOM corresponding to each stkATOM, allowing users to receive more ATOM when they unstake.

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

pSTAKE currently supports staking a variety of assets, including ATOM on Cosmos Hub, OSMO on the Osmosis chain, DYDX on the dYdX chain, STARS on Stargaze, HUAHUA on Chihuahua, as well as these 5 tokens minted on the Persistence chain.

stake derivatives

Persistence and the Cosmos ecosystem have launched various stk asset derivative products. For example, in DEX products, stkATOM can be directly swapped for ATOM without the need to unstake or pay additional fees. In addition, the combination of stk assets and native assets can also add liquidity in the DEX, yielding higher returns.

$XPRT stake

As an independent blockchain, Persistence also requires staking to enhance network security. Users can conveniently stake $XPRT in the official Persistence platform 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 has been developed by 72 developers, with the most recent code submission made two days ago.

In addition, Persistence and pSTAKE collaborate with multiple security agencies to provide comprehensive support for the security of staking and re-staking. These agencies include 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 via pSTAKE, Stride, and Quicksilver. This enables users to re-stake their assets and secure additional chains while earning extra rewards.

The re-staking module of Persistence is developed based on the Alliance module, supporting staking requests for various assets such as staking equity tokens, stablecoins, LP tokens, etc.

Re-stake Alliance

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

This staking asset alliance reward distribution mechanism has formed a community of interest, which is conducive to improving the security and decentralization of the Cosmos ecosystem.

Source of re-staking income

The tokens used by users 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 original stakers.

Conclusion

Persistence provides an effective and secure economic infrastructure for liquid staking and re-staking in the Cosmos ecosystem. Through an innovative re-staking solution, 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. These innovations are gradually deepening Persistence's influence in the Cosmos ecosystem, bringing higher security, asset liquidity, and participation to the entire ecosystem.