Holding cryptocurrencies on a proof-of-stake blockchain network has become one of the popular ways to generate consistent returns on crypto. While DeFi offers the potential for great returns at very high risk, bets offer a more stable return of around 15% on average, according to current statistics. stakerewards.com. Still significantly higher than anything you would get from a bank, but generally at a much lower risk.
However, the fact that staking requires the lockup of the token means that at present, it is an either/or decision. If a user with some appetite for risk wants to hedge against the credibility of their stake earnings, they will have to shell out their funds to be able to use it. This is a feature rather than a bug – it is designed to enhance the security of the blockchain during the Black Swan event. However, it also ensures that a large amount of liquidity is locked out of the wider crypto-financial ecosystem.
Now, Persistence is about to bring the next product in its suite – pshare. It aims to address the challenge of staking, provide users with a simple and intuitive means to place bets, and unlock the liquidity held in the Proof of Stake market worth over $600 billion. And all while increasing the overall security and decentralization of the staking ecosystem.
What is a piesteak?
pSTAKE is a liquid staking protocol that allows users to unlock the liquidity of their staking assets. how does it work? Well, instead of staking tokens directly with the platform, users will stake them via the pSTAKE protocol. In return, the user will receive 1:1 pegged pTOKEN. These tokens represent user stake on the Ethereum blockchain and can be used in the Ethereum DeFi ecosystem.
Under the hood, pSTAKE assigns assets on the underlying PoS network to one of its whitelisted validators on which the user wishes to bet. In this way, the user gets his bet prize. However, the pTOKEN they receive from the pSTAKE protocol can be supplied as liquidity to a DEX pool, earning a portion of the transaction fee, or provided to a decentralized lending pool in exchange for interest. . The returns generated from these DeFi deposits are on top of the prizes placed at stake, which increases the earning potential from the same initial stake.
Cosmos is the first network supported on the pSTAKE application, followed by Persistence.
Another tool in the persistence box
Persistence in DeFi is emerging as a new contender, and is also flying the flag on behalf of a multi-chain ecosystem. pSTAKE is based on Ethereum and Cosmos, and Persistence works with many other platforms in their various offerings and operations. The project already operates a decentralized commodity exchange called Comdex, which recently Passed $100 million in transaction volume.
The launch of PSTKE is based on Persistence’s credentials in the Proof of Stake field. It also operates Project Audit.One, a staking solution as a service that secures more than ten networks, including its own platforms from Polygon, Cosmos, Terra, NEAR, and Persistence.
Persistence has also added a group of professional and established validators to its network, including Band Protocol in Thailand, Cosmostation in South Korea, Tavis Digital in Switzerland, and Huobi Pool in China. The first 16 validators involved by Persistence collectively amassed more than $7 billion in assets. Hence, the project has a well-established network and reputation among the PoS community, providing a secure way for any user to unlock the liquidity of their stakes with pStake.
pSTAKE will launch on June 15 at 12 noon UTC.