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

Persistence is one of the first application chains in the Cosmos ecosystem to utilize IBC, CosmWasm, and liquid staking modules. By focusing on POS and products related to liquid staking, Persistence has built 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 for pSTAKE to facilitate liquid staking growth. pSTAKE will share 15% of its liquid staking revenue with Cosmos Hub.

Persistence Ecosystem Overview

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

The Map of Zones shows that Persistence has established 121 channels with 44 other zones in the Interchain network, demonstrating its high interconnectedness. 74.7% of XPRT tokens in the network are staked, with an annualized yield of 16.7%. This high staking rate typically indicates a higher level of security and participation in the network.

The infrastructure of Persistence consists of 6 nodes and 100 validators, working together to ensure 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, of which 616 were IBC transactions. There were 932 active addresses and 86 active IBC addresses. IBC inflow continues to exceed 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 in Rust. These DApps developed based on CosmWasm can operate across chains through IBC, providing convenient, secure, and efficient technical support for liquid staking.

Persistence connects to 54 Cosmos application chains via IBC, enabling trustless communication, transfer, staking, and liquid staking of tokens, laying the ecological foundation for staking and liquid staking in the Cosmos ecosystem.

In addition, Persistence utilizes Interchain Accounts (ICA) to achieve ICA Liquid Staking, allowing an account on one chain to perform operations on another chain, enhancing the efficiency and flexibility of staking and restaking.

liquid staking

In the Cosmos ecosystem, liquid staking involves two roles: validators and delegators. Stakers (delegators) can choose the validator nodes to delegate to. Validators operate hardware and blockchain applications based on the Cosmos SDK, reaching consensus with other validators to propose and validate new blocks on the chain.

If a validator exhibits negative behavior, the delegators of their node will be subject to corresponding penalties. For example, if a validator unexpectedly or maliciously remains offline, the delegator's stake will be reduced by 0.1%. In the case of extremely malicious behavior (such as double signing), the stake will 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 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 completing the staking, the pSTAKE protocol will issue the corresponding staking rights tokens to the user's wallet, such as stkATOM for staking ATOM.

pSTAKE provides an automatic compounding feature. Taking stkATOM as an example, the user's daily staking rewards (ATOM) will automatically be staked, continuing to earn rewards. This means that the amount of staked ATOM corresponding to each stkATOM will increase, allowing users to receive more ATOM when they unstake.

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

Staking Derivative Products

Persistence and the Cosmos ecosystem have launched more stk asset derivatives. For example, in certain DEX products, stkATOM can be exchanged for ATOM directly, without the need to unstake or pay additional fees. The stk assets can also be paired with native assets to add liquidity in DEX, yielding higher returns.

XPRT stake

As an independent blockchain, Persistence also requires staking to enhance network security. Users can easily 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 involves 72 developers and is kept frequently updated.

Persistence collaborates with multiple security agencies to provide comprehensive support for the safety of staking and restaking, including well-known blockchain security audit institutions, global security research consulting firms, and smart contract security audit agencies.

Re-staking Innovation

Persistence is building a Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens (such as stkATOM, stTIA, stkDYDX, etc.) into Persistence, restake assets and secure additional chains while earning extra rewards.

Re-stake 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 weight of the assets, with decisions and adjustments made through decentralized governance.

This staking asset alliance reward distribution mechanism will form a community of interest with the re-staked assets, which is beneficial for enhancing the security and decentralization of the Cosmos ecosystem.

Re-staking yield sources

The tokens used by users for re-staking will be locked and native tokens (such as XPRT) will be minted in proportion. These tokens will be staked to validators, and the staking rewards obtained will be distributed to the original stakers.

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, which not only enhances mutual security guarantees but also increases the degree of decentralization of the Cosmos ecosystem chains within the re-staking alliance. These innovations are gradually deepening Persistence's influence within the Cosmos ecosystem, bringing higher security, asset liquidity, and participation to the entire ecosystem.