How Persistence Chain Drives the Development of Liquid Staking and Re-Staking in the Cosmos Ecosystem

Persistence is one of the early application chains in the Cosmos ecosystem to enable IBC, CosmWasm, and liquid staking modules. By continuously focusing on POS and liquid staking-related products, it 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. 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 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 Persistence has established 121 channels with 44 other zones in the Interchain network, demonstrating its high interconnectivity. 74.7% of the $XPRT tokens in the network are in stake, with an annualized staking yield of 16.7%. This reflects the network's high 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 last 24 hours, the IBC trading volume of Persistence was approximately $260,800, with a total of 4,955 transactions, including 616 IBC transactions. There were 932 active addresses and 86 active IBC addresses. The inflow of IBC funds has consistently exceeded 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, achieving cross-chain interoperability for applications and providing convenient, secure, and efficient technical support for liquid staking.

Persistence connects 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.

The project also 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 re-staking.

Cosmos Ecosystem Stake and Network Security

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

If a validator engages in negative behavior, their delegators will face corresponding penalties. If a validator goes offline unexpectedly or maliciously, the delegator's stake will be reduced by 0.1%. If the validator exhibits extreme malicious behavior such as double signing, the stake will be reduced by 5%.

This mechanism prevents malicious behavior through economic incentives and potential penalties. Validators and delegators share the responsibility of maintaining network efficiency and security while earning token rewards.

pSTAKE staking platform

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

pSTAKE has an automatic compound interest feature. Taking stkATOM as an example, the user's daily staking rewards (ATOM) will automatically enter staking, continuing to earn rewards. This increases the amount of staked ATOM corresponding to each stkATOM, allowing users to receive more ATOM when they unstake.

Users must wait 21-25 days when canceling staking; they can also pay a 1% fee to unwrap immediately. When reclaiming the stake, the corresponding stk assets will be destroyed.

pSTAKE currently supports the following 5 tokens: ATOM from Cosmos Hub, OSMO from Osmosis chain, DYDX from dYdX chain, STARS from Stargaze, and HUAHUA from Chihuahua, as well as those minted on the Persistence chain.

Users need to hold a small amount of $XPRT as GAS fees when staking any assets on pSTAKE.

Staking Derivative Products

Persistence and the Cosmos ecosystem have launched more stk asset derivatives. Users can directly exchange stkATOM for ATOM on the DEX without the need to unstake or pay additional fees. stk assets can also add liquidity with native assets on the DEX to achieve higher yields. For example, the expected annualized yield of stkDYDX + DYDX on the Dexter platform under Persistence reaches as high as 45.82%.

$XPRT stake

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

stake safety guarantee

Persistence and pSTAKE are both open-source projects, which is an important guarantee of security. pSTAKE is developed by 72 developers who remain actively involved in updates.

Persistence and pSTAKE collaborate with multiple security agencies to provide comprehensive security support for staking and liquid staking. Partner organizations include well-known blockchain security audit firms such as Halborn, PeckShield, and Certora, as well as security consulting companies like Trail of Bits and Solidified.

Re-staking Innovation

Persistence is building the Restaking infrastructure for the Cosmos ecosystem, allowing users to deposit liquid staking tokens (such as stkATOM, stTIA, stkDYDX) into Persistence through pSTAKE, Stride, and Quicksilver. Users can restake these assets to secure other chains while earning additional rewards.

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

( Re-staking Alliance

The re-staking module of Persistence is developed based on the Alliance module, which enables assets to be staked from one blockchain to another, creating a mutually beneficial relationship.

Re-staking alliance shares staking rewards, where stakers of various assets distribute rewards according to the reward weight of the assets. 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 will form a community of interests with the re-staked assets, which is beneficial for improving the security and decentralization of the Cosmos ecosystem.

![From liquid staking to re-staking innovations, how does Persistence impact the Cosmos ecosystem?])https://img-cdn.gateio.im/webp-social/moments-07b5c4bde7d7789426294eafcef2df74.webp###

( Source of re-staking收益

The tokens used by users for re-staking will be locked and proportionally minted into native tokens, which will then enter the staking module to stake as delegates to validators. For example, the stkATOM and stTIA staked by users will be locked in the re-staking module on the Persistence chain and proportionally minted into $XPRT. These $XPRT will be staked to validators, and the staking rewards will be distributed to stakers such as stkATOM and stTIA.

![From liquid staking to re-staking innovation, how does Persistence affect the Cosmos ecosystem?])https://img-cdn.gateio.im/webp-social/moments-5d76cd10fc63916be9c59fbbb6f98ebf.webp###

Summary

Persistence provides an effective and secure economic infrastructure for liquid staking and re-staking within the Cosmos ecosystem. Through an innovative re-staking program, Persistence establishes an economic alliance for re-stakers, forming a cross-chain community of shared interests that not only enhances mutual security but also increases the degree of decentralization of the Cosmos ecosystem chains within the re-staking alliance.