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

Persistence is one of the first Cosmos application chains to enable IBC, CosmWasm, and liquid staking modules. By continuously focusing on POS and liquid staking related products, it has built a complete liquid staking and re-staking architecture for the Cosmos ecosystem.

Recently, the Cosmos community decided through voting 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 (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.

Data shows that Persistence has established 121 channels with 44 other zones in the Interchain network, demonstrating its high interconnectivity. 74.7% of the tokens ($XPRT) 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, collectively ensuring the decentralization and security of the network.

In the last 24 hours, the IBC trading volume of Persistence reached $260,800, with 4,955 transactions, including 616 IBC transactions. There are 932 active addresses and 86 active IBC addresses. The inflow of IBC continues to exceed the 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 using the Rust language. These DApps developed based on CosmWasm can run across chains through IBC, providing convenient, secure, and efficient technical support for liquid staking.

Persistence connects to 54 Cosmos application chains through IBC, enabling trustless communication, transfer, stake, and restake of tokens, laying a solid ecological foundation for staking and restaking in the Cosmos ecosystem.

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

Liquid Staking in the Cosmos Ecosystem

In the Cosmos ecosystem, liquid staking involves two main roles: validators and delegators.

When staking, the delegator can choose the validator node to delegate to. 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, if a validator unexpectedly or maliciously stays offline continuously, the staked deposits of the delegators will be reduced by 0.1%. If a validator engages in extremely malicious behavior, such as a double-signing violation, the staked deposits will be reduced by 5%.

This mechanism prevents malicious behavior through economic incentives and potential penalties. Validators and delegators share responsibility for maintaining network efficiency and security while earning a certain amount of token rewards.

pSTAKE staking platform

pSTAKE provides a simple staking process for the Cosmos ecosystem. Users only need to select the token to stake and the chain to stake on, and they can proceed with the staking. After staking is complete, the pSTAKE protocol will issue the corresponding staking rights tokens to the user's wallet, for example, staking ATOM will yield stkATOM.

pSTAKE offers an automatic compound interest feature. Taking stkATOM as an example, users' daily staking rewards (ATOM) will automatically enter the stake, continuing to generate rewards. This means that the amount of staked ATOM corresponding to each stkATOM will increase, and users can receive more ATOM when they unstake.

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

Staking Derivatives

Persistence and the Cosmos ecosystem have launched more stk asset derivatives. For example, in certain DEX products, users can directly exchange stkATOM for ATOM without the need to unstake or pay additional fees. Furthermore, stk assets combined with native assets can also provide liquidity in DEXs to achieve higher yields.

$XPRT stake

As an independent blockchain, Persistence also requires staking to enhance network security. Users can conveniently 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 has 72 developers involved, with the most recent code submission made two days ago.

Persistence and pSTAKE collaborate with multiple security organizations to provide comprehensive support for the security of staking and liquid staking. These organizations include well-known blockchain and crypto security audit firms, global security research and consulting companies, smart contract security audit agencies, DeFi bug bounty platforms, and real-time monitoring and alert networks for blockchain security.

Re-staking Innovation

The Persistence team is building Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens (such as stkATOM, stTIA, stkDYDX, etc.) into Persistence. 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, and LP tokens.

Re-staking Alliance

The re-staking module of Persistence is developed based on the Alliance module. Alliance is an open-source Cosmos SDK module that facilitates assets to be staked from one blockchain to another, creating mutually beneficial relationships between blockchains through inter-chain staking.

Re-stake the alliance to share staking rewards, and the stakers of various assets will distribute the rewards according to the asset's reward weight. The reward weight for $XRPT is 1, and the reward weights for other assets are determined and adjusted through decentralized governance.

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

Source of Re-staking Earnings

The tokens used by users for re-staking will be locked and natively minted tokens will be minted proportionally, with the minted native tokens entering the staking module to be staked to validators in the role of delegator. This is the source of income for Persistence re-staking and further strengthens the security and liquidity of the Cosmos ecosystem.

Conclusion

Persistence provides an effective and secure economic infrastructure for liquid staking and re-staking in the Cosmos ecosystem. Through an innovative re-staking program, Persistence establishes an economic alliance for re-stakers, which not only enhances mutual security but also increases the degree of decentralization of the Cosmos ecosystem chain within the re-staking alliance. As these innovations continue to develop, Persistence is gradually deepening its influence in the Cosmos ecosystem, bringing greater security, asset liquidity, and participation to the entire ecosystem.