Persistence and the Innovation of Liquid Staking in the Cosmos Ecosystem

Persistence is one of the earlier application chains in the Cosmos ecosystem to adopt IBC, CosmWasm, and liquid staking modules. By continuously focusing on POS and liquid staking related products, it has built a complete liquid staking and re-staking architecture for the Cosmos ecosystem.

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

Overview of the Persistence Ecosystem

According to official data, the total locked value of the Persistence ecosystem is approximately 14.78 million USD with a TVL of (, and the IBC trading volume in the past 30 days reached 15 million USD, with an average transaction cost of less than 0.005 USD. In the Interchain network, Persistence has established 121 channels with 44 other regions, demonstrating its high interconnectivity.

About 74.7% of the $XPRT tokens in the network are in stake status, with an annualized staking yield of 16.7%. This indicates a high level of security and participation in the network. The infrastructure of Persistence consists of 6 nodes and 100 validators, collectively maintaining 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, with 86 IBC active addresses. It is worth noting that IBC inflows have consistently exceeded outflows, indicating that more and more value is flowing into Persistence and participating in staking.

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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 54 Cosmos application chains through IBC, enabling trustless communication, transfer, staking, and re-staking of tokens. Additionally, through the Interchain Accounts )ICA( technology, Persistence has also achieved ICA Liquid Staking, enhancing the efficiency and flexibility of staking and re-staking.

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Liquid Staking of the Cosmos Ecosystem

In the Cosmos ecosystem, liquid staking involves two roles: validators and delegators. Delegators can choose the validator node they want 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.

To maintain network security, the Cosmos ecosystem employs a penalty mechanism. If a validator exhibits misconduct, the staked deposits of delegators may be reduced. For example, continuous offline status of a validator may result in a 0.1% reduction of the staked deposits, while severe violations such as double signing may lead to a 5% reduction of the staked deposits.

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.

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pSTAKE staking platform

pSTAKE provides a simple 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. After the staking is completed, users will receive the corresponding staking rights tokens, such as stkATOM for staking ATOM.

pSTAKE adopts an automatic compounding mechanism. Taking stkATOM as an example, users' daily staking rewards (ATOM) will be automatically restaked to continue generating rewards. This means that the staked ATOM corresponding to each stkATOM will gradually increase, allowing users to obtain more ATOM when they unstake.

Users need to wait 21 to 25 days when canceling their stake, or they can pay a 1% fee for a lightning unstake. When retrieving the stake, the corresponding stk assets will be destroyed.

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stake derivatives

Persistence and the Cosmos ecosystem have launched various stk asset derivatives. For example, stkATOM can be directly exchanged for ATOM on the DEX without the need to unstake or pay additional fees. Moreover, the combination of stk assets and native assets can add liquidity in the DEX, yielding higher returns. For instance, in Dexter under Persistence, the expected annualized return of stkDYDX + DYDX can be as high as 45.82%.

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$XPRT stake

As an independent blockchain, Persistence also requires staking to enhance network security. Users can conveniently stake $XPRT in the Persistence official platform or Keplr wallet by selecting the validator node they wish to delegate to.

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stake security

Persistence and pSTAKE are both open-source projects, which is an important guarantee of their security. The pSTAKE program is collaboratively developed by 72 developers and is actively updated. In addition, Persistence collaborates with multiple security agencies to provide comprehensive support for the security of staking and liquid staking, including well-known blockchain security auditing agencies such as Halborn, PeckShield, and Certora.

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Re-staking Innovation

Persistence is building the Restaking infrastructure of the Cosmos ecosystem, allowing users to deposit liquid staking tokens into Persistence through pSTAKE, Stride, and Quicksilver, achieving asset restaking while earning additional rewards.

The re-staking module of Persistence supports various assets, including staking equity tokens, stablecoins, LP tokens, and more. The re-staking alliance developed based on the Alliance module allows stakers of different assets to share staking rewards, forming a cross-chain community of shared interests, thereby enhancing the security and decentralization of the Cosmos ecosystem.

The yield from re-staking comes from the tokens locked by users for staking, which are proportionally minted as native tokens and staked to validators. This mechanism not only provides users with additional returns but also further strengthens the security and liquidity of the Cosmos ecosystem.

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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 is gradually deepening its influence in the Cosmos ecosystem, bringing higher security, asset liquidity, and participation to the entire ecosystem. The establishment of the re-staking alliance not only enhances cross-chain security but also increases the level of decentralization in the Cosmos ecosystem, laying a solid foundation for the future development of the Cosmos ecosystem.

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

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