Persistence: Building the Cosmos ecosystem liquid staking and re-staking infrastructure

Persistence is one of the first application chains in the Cosmos ecosystem to enable IBC, CosmWasm, and liquid staking modules. The project is dedicated to developing products related to POS and liquid staking, building a complete architecture for liquid staking and re-staking within the Cosmos ecosystem.

In December 2023, the Cosmos community voted to approve a proposal to allocate 600,000 ATOM for the growth of liquid staking for pSTAKE. In return, 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 a TVL of ( and an IBC trading volume of 15 million USD in the past 30 days, with an average transaction cost of less than 0.005 USD. The data shows that Persistence has established 121 channels with 44 other regions in the Interchain network, reflecting its high interconnectivity.

Currently, 74.7% of XPRT tokens are in a stake state, with an annualized yield of 16.7%. The high staking rate indicates that the network has a high level of security and participation. The infrastructure of Persistence consists of 6 nodes and 100 validators, collectively ensuring the decentralization and security of the network.

In the last 24 hours, the IBC trading volume of Persistence was $260,800, with 4,955 transactions, of which 616 were IBC transactions. There were 932 active addresses and 86 active IBC addresses. IBC inflows continued to exceed outflows, reflecting that more and more value is flowing into Persistence and participating in stake.

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Technical Support

Persistence supports the CosmWasm framework, allowing developers to write secure and interoperable smart contracts using Rust language. DApps developed based on CosmWasm can operate 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, stake, 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 restaking.

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liquid staking

In the Cosmos ecosystem, liquid staking involves two roles: validators and delegators. Delegators can choose the validator nodes 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 a validator exhibits negative behavior, the delegators of its node will face corresponding penalties. For example, continuous offline status of the validator may result in a 0.1% reduction of the delegator's stake deposit, while extremely malicious actions such as double signing may lead to a 5% reduction in the stake deposit.

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.

![From liquid staking to re-staking innovation, how does Persistence influence the Cosmos ecosystem?])https://img-cdn.gateio.im/webp-social/moments-c58cc65ca1e18f71b0c09ab7e528b843.webp(

) 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 stake. Once the staking is completed, the pSTAKE protocol will issue the 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 the stake, continuing to generate rewards. This means that the staked ATOM corresponding to each stkATOM will increase, allowing the user to receive more ATOM when they unstake. Therefore, the user's staking rewards are reflected in the growth of the stkATOM/ATOM ratio.

Users need to wait 21-25 days to cancel the stake or pay a 1% fee for a flash unstake. When retrieving the stake, the corresponding stk assets will be destroyed.

Currently, pSTAKE supports staking for 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.

It is worth noting that regardless of which chain's assets are staked, a certain amount of XPRT is required as GAS fees, but the GAS fees on the Persistence chain are very low.

![From liquid staking to re-staking innovation, how does Persistence impact the Cosmos ecosystem?])https://img-cdn.gateio.im/webp-social/moments-023d35e091705166c3fa58d4ffc30f73.webp(

Stake Derivatives

Persistence and the Cosmos ecosystem have launched more stk asset derivatives. For example, stkATOM can be directly exchanged for ATOM in DEX products without the need to unstake or pay additional fees. In addition, the combination of stk assets with native assets can also add liquidity in DEX, resulting in higher yields.

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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 site or Keplr wallet by simply selecting the Persistence network and choosing the validator nodes they wish to stake with.

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stake security

Persistence and pSTAKE are both open-source programs, which is an important guarantee of security. The pSTAKE program involves 72 developers and remains actively updated.

In addition, Persistence and pSTAKE collaborate with multiple security firms to provide comprehensive support for the security of staking and re-staking. These firms include Halborn, PeckShield, Certora, Hexens, Notional, Trail of Bits, Solidified, ConsenSys Diligence, Oak Security, Immunefi, and Forta.

![How does Persistence influence the Cosmos ecosystem from liquid staking to re-staking innovation?])https://img-cdn.gateio.im/webp-social/moments-b3366e8cdd4c64f11ca83466f167751e.webp(

Re-stake

Persistence is building the Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens ) such as stkATOM, stTIA, stkDYDX( into Persistence through pSTAKE, Stride, and Quicksilver. This enables users to restake assets and secure additional chains while earning extra rewards.

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

![From liquid staking to re-staking innovation, how does Persistence impact the Cosmos ecosystem?])https://img-cdn.gateio.im/webp-social/moments-1b49b0762972d968bb7bf9c3b7d5e0a8.webp(

) Re-staking Alliance

The re-staking module of Persistence is developed based on the Alliance module. Alliance is an open-source Cosmos SDK module built by Terraform Labs, which facilitates assets to be staked from one blockchain to another, allowing inter-chain staking to enable blockchains to form mutually beneficial relationships.

Re-stake the alliance to share staking rewards, and the stakers of various assets distribute rewards according to the asset's reward weight. 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 coalition of re-staked assets, creating a community of shared interests, which is beneficial for enhancing the security and decentralization of the Cosmos ecosystem.

![How Persistence Affects the Cosmos Ecosystem from Liquid Staking to Re-Staking Innovation?]###https://img-cdn.gateio.im/webp-social/moments-07b5c4bde7d7789426294eafcef2df74.webp(

) Source of re-staking rewards

The tokens used by users for re-staking will be locked and natively minted in proportion. The minted native tokens enter the staking module to be staked to the validator as a delegator.

For example, the stkATOM and stTIA staked by users will be locked by the re-staking module on the Persistence chain and minted into XPRT proportionally. These XPRT will be staked to validators, and the staking rewards will be distributed to stakers of stkATOM, stTIA, and others.

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Summary

Persistence provides an effective and secure economic infrastructure for liquid staking and restaking in the Cosmos ecosystem. Through its liquid staking products, Persistence is gradually deepening its influence in the Cosmos ecosystem, bringing higher security, asset liquidity, and ecological participation to the system.

The innovative re-staking program establishes an economic alliance for re-stakers, forming a cross-chain community of shared interests that not only enhances mutual security guarantees but also increases the level of decentralization of the Cosmos ecosystem within the re-staking alliance.

![How Persistence Influences the Cosmos Ecosystem from Liquid Staking to Re-Staking Innovation?])https://img-cdn.gateio.im/webp-social/moments-bc4d83657a11cffc270903ff9103a745.webp(