Persistence: Building Liquid Staking and Re-staking Infrastructure for the Cosmos Ecosystem

Persistence is one of the application chains in the Cosmos ecosystem to first enable IBC, CosmWasm, and liquid staking modules. By deeply cultivating products related to POS and liquid staking, this project 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 liquid staking growth. 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 with a TVL of (, and the IBC trading volume in the past 30 days reached $15 million, with an average transaction cost of less than $0.005. Currently, Persistence has established 121 channels with 44 other zones within the Interchain network, demonstrating its high interconnectivity.

Approximately 74.7% of the $XPRT tokens in the network are in stake, with an annualized yield of 16.7%. A high staking rate usually indicates strong security and participation in the network. The infrastructure of Persistence consists of 6 nodes and 100 validators, working together to maintain the decentralization and security of the network.

In the past 24 hours, the IBC trading volume of Persistence was approximately $260,800, with a total of 4,955 trades, including 616 IBC trades. There were 932 active addresses, with 86 IBC active addresses. It is noteworthy that the IBC inflow has consistently exceeded the outflow, which may indicate 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 on the CosmWasm framework can operate across chains via IBC, providing convenient, secure, and efficient technical support for liquid staking.

Currently, Persistence has connected to 54 Cosmos application chains via IBC, enabling trustless communication, transfer, staking, and liquid staking of tokens, laying a solid foundation for staking and liquid staking in the Cosmos ecosystem.

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

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liquid staking

In the Cosmos ecosystem, liquid staking involves two main roles: validators and delegators. Delegators can choose the validator nodes they want to delegate to when staking. Validators are responsible for running hardware and blockchain applications based on the Cosmos SDK, reaching consensus with other validators, and proposing and validating new blocks on the chain.

If validators engage in improper behavior, including accidental or malicious prolonged offline status, the delegator's stake deposit may be reduced by 0.1%. For extremely malicious actions, such as double signing violations, the stake deposit may 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 receiving corresponding token rewards.

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) 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 staking. Once the staking is completed, the pSTAKE protocol will issue corresponding staking rights tokens to the user's wallet, for example, staking ATOM will yield stkATOM.

pSTAKE adopts an automatic compounding mechanism. Taking stkATOM as an example, users' daily staking rewards (ATOM) are automatically staked, continuing to earn rewards. This means that the number of staked ATOM corresponding to each stkATOM will gradually increase, allowing users to receive more ATOM when they unstake. Therefore, users' staking rewards are reflected in the growth of the stkATOM/ATOM ratio.

When the user cancels the stake, they usually need to wait 21-25 days; they can also choose to pay a 1% fee for a lightning un-staking. 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 derivative products. For example, in certain DEX products, users can directly exchange stkATOM for ATOM without the need to unstake or pay additional fees. Furthermore, the combination of stk assets with native assets can also add liquidity in DEXs, yielding higher returns.

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$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 certain wallets. The staking process is simple; just select the Persistence network and choose the validator node you wish to stake with.

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stake security

Persistence and pSTAKE are both open-source programs, which is one of the important guarantees of security. The pSTAKE program is developed by 72 developers and remains actively updated.

In addition, Persistence and pSTAKE collaborate with multiple security institutions to provide comprehensive support for the security of staking and liquid staking. These institutions include well-known blockchain and cryptocurrency security audit firms, global security research and consulting companies, smart contract security audit organizations, and leading bug bounty platforms in DeFi.

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Re-staking Innovation

Persistence is building a re-staking infrastructure in Cosmos that allows users to deposit liquid staking tokens into Persistence across multiple platforms. This enables users to re-stake their assets and secure additional chains while earning extra rewards.

The re-staking module of Persistence supports staking requests for various assets, including staking rights tokens, stablecoins, LP tokens, and more. This module is developed based on the Alliance module and facilitates the staking of assets from one blockchain to another, forming a mutually beneficial relationship.

The re-staking alliance shares staking rewards, and stakers of various assets distribute rewards according to the asset's reward weight. This mechanism forms a community of interest with the re-staked assets, which is beneficial for enhancing the security and decentralization of the Cosmos ecosystem.

The收益 from re-staking comes from the native tokens minted proportionally after the user's staked tokens are locked, which enter the staking module and are delegated to validators. The staking rewards obtained are then distributed to various types of stakers.

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Summary

Persistence provides an effective and secure economic infrastructure for liquid staking and re-staking in the Cosmos ecosystem. Through its innovative re-staking program, Persistence establishes an economic alliance for re-stakers, which not only enhances mutual security guarantees but also improves the degree of decentralization within the re-staking alliance of the Cosmos ecosystem. As its influence continues to grow, Persistence is bringing higher security, asset liquidity, and ecological participation to the Cosmos ecosystem.

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