Just like the recent deals done as seen in the partnership by Lido and Anchor Protocols, pSTAKE introduces liquid staking as part of the Cosmos ecosystem. This move now allows ATOM and XPRT holders for deeper integration of DeFi.
It was earlier noted that most of the major transitions that happened within the crypto space involve the increase of proof-of-state (PoS) protocols over the proof-of-work (PoW) model. This comes after the growing concern for environmental impact due to PoW’s energy requirements.
Later projects now transition to PoS with newer protocols in place with liquid staking as its main feature.
Industry giants backing the project with a USD10 million seed fund
Operating in part of the Persistence (XPRT) protocol, pSTAK is a multi-chain tech stack supporting various crypto technologies such as Ethereum (ETH) and Cosmos (ATOM). Part of Persistence’s vision is an ecosystem of multi-chain Web 3.0 products for global liquidity stimulation and the simplification of value exchange.
The funding round was done by prominent investment firms such as Three Arrows Capital, Galaxy Digital, Sequoia Capital India, and Defiance Capital.
According to news released by Yahoo! Finance, the funding shall be used to expand its operations through talent acquisition while carrying out security audits. It was also used to create reserves to bootstrap liquidity staking on the protocol providing enough liquidity for users within the platform.
The pSTAKE protocol currently has a total value locked (TVL) of a cool $48.63 million. Project developers are also working to include other tokens, such as Ether, Terra (LUNA), and Solana (SOL), to expand its support.
Post-launch, pSTAKE has included liquid staking in its service line-up for Cosmos and XPRT yielding a yearly rate of 12% and 32% respectively. DeFi plays an important role for pSTAKE, as users are eligible to deposit ATOM or XPRT on the protocol.
Liquid Staking in the Cosmos Ecosystem
As newer protocols offer new features and innovations, liquid staking has been one of the recent ones thrown into the mix. While many competitors also include this in their own portfolio, pSTAKE differentiates itself as its main focus is solely on increasing liquidity for other protocols.
Protocols that are under the Inter-Blockchain Communication Protocol (IBC) are included by adding Ethereum Virtual Machine (EVM) compatibility.
pSTAKE holds itself as the only protocol supporting ATOM and other Tendermint-projects. Once this is obtained and processed, stkTOKENS are made available across various DeFi protocols through the Ethereum ecosystem, which allows for the generation of additional yield.
The expansion from pSTAKE gives a chance for the protocol to grow by increasing its presence in the community while including other projects in the Cosmos ecosystem. The airdrop of the pSTAKE token is also a good chance to rally support from its members and early adopters with the availability of 30 million pSTAKE tokens distributed within the next 6 months through ATOM, OSMO, and XPRT stakers.
We can expect bigger things from Persistence which would ramp up growth and define the blockchain space as we know it, most especially with the full support and backing of its investors.