Persistence: From liquid staking to re-staking innovation, promoting the development of the Cosmos ecosystem

Persistence is one of the application chains in the Cosmos ecosystem that first supports IBC, CosmWasm, and the liquid staking module (LSM). By focusing on POS and liquid staking related products, it has created a complete liquid staking and re-staking architecture for the Cosmos ecosystem.

Recently, the Cosmos community voted to allocate 600,000 ATOM to promote the growth of liquid staking for pSTAKE. At the same time, pSTAKE will share 15% of the liquid staking revenue with Cosmos Hub.

Overview of Persistence Ecosystem

According to official data, the Persistence ecosystem TVL is approximately 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 regions in the Interchain network, reflecting its high interconnectivity. 74.7% of the $XPRT tokens in the network are in a stake state, with an annualized yield of 16.7%. This reflects the network's high security and participation.

The Persistence infrastructure consists of 6 nodes and 100 validators, working together to ensure the decentralization and security of the network.

IBC, as the core protocol of the Cosmos ecosystem, enables interoperability between different blockchains. 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, with 86 active IBC addresses. The inflow of IBC continues to be higher than the outflow, indicating that 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. DApps developed based on CosmWasm can achieve cross-chain operation 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 re-staking of tokens, laying the foundation for staking and re-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, thereby improving the efficiency and flexibility of staking and restaking.

liquid staking

Cosmos ecosystem stake and network security

The liquid staking in the Cosmos ecosystem includes two roles: validators and delegators. Delegators can choose validator nodes for staking. Validators operate hardware and blockchain applications based on the Cosmos SDK, reach consensus with other validators, propose, and validate new blocks.

If a validator exhibits negative behavior, the delegator will face corresponding penalties. Unexpected or malicious offline behavior by the validator will result in a 0.1% reduction of the delegator's stake deposit. Extremely malicious actions such as double signing will lead to a 5% reduction in the stake deposit.

This mechanism prevents malicious behavior through economic incentives and potential penalties, with validators and delegators jointly maintaining network efficiency and security while earning token rewards.

pSTAKE stake

pSTAKE provides a simple staking process for the Cosmos ecosystem. Users can stake by selecting the token and the chain they want to stake on. After staking is completed, the protocol issues 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 daily staking rewards (ATOM) automatically enter the staking, continuing to generate earnings. This results in an increase in the staked ATOM corresponding to each stkATOM, allowing users to receive more ATOM when they unstake.

Users need to wait 21-25 days to cancel their stake, or pay a 1% fee to release it immediately. When reclaiming the stake, the corresponding stk assets will be destroyed.

Currently, pSTAKE supports multiple assets stake, including ATOM from Cosmos Hub, OSMO from Osmosis, DYDX from dYdX chain, STARS from Stargaze, HUAHUA from Chihuahua, and these five tokens minted on the Persistence chain.

It is worth noting that regardless of which chain's assets are staked, a small amount of $XPRT needs to be held as GAS fees.

Stake Derivatives

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

$XPRT stake

As an independent blockchain, Persistence also requires staking to enhance network security. Users can easily stake $XPRT in the Persistence official site or Keplr wallet by selecting the validator node they wish to delegate to.

stake security

Persistence and pSTAKE are both open-source programs, which is an important guarantee of security. The pSTAKE program is maintained by 72 developers who actively update it.

In addition, Persistence collaborates with several security institutions to provide comprehensive security support for staking and liquid staking. These institutions include well-known blockchain security audit firms such as Halborn, PeckShield, Certora, as well as security research consulting companies like Trail of Bits and Solidified.

Re-staking Innovation

Persistence is building Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens into Persistence through pSTAKE, Stride, and Quicksilver, achieving asset restaking and protecting additional chains while earning extra rewards.

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

Re-staking Alliance

The re-staking module of Persistence is developed based on the Alliance module, which promotes the ability to stake assets from one blockchain to another, forming a mutually beneficial relationship. Stakers of different assets can join the re-staking asset alliance to receive re-staking rewards and $XPRT.

The re-staking alliance adopts a shared staking reward mechanism, where asset stakers distribute rewards according to their reward weight. This mechanism forms a community of interest among re-staked assets, which helps to improve the security and decentralization of the Cosmos ecosystem.

Source of re-staking income

The tokens that users stake again will be locked and native tokens ($XPRT) will be minted proportionally. These $XPRT will be staked to validators, and the staking rewards will be distributed to the original stakers. This mechanism not only serves as a source of income for re-staking but also further strengthens the security and liquidity of the Cosmos ecosystem.

Summary

Persistence provides an effective and secure economic infrastructure for liquid staking and re-staking within the Cosmos ecosystem. Through an innovative re-staking solution, Persistence establishes an economic alliance for re-stakers, forming a cross-chain community of shared interests. This not only enhances mutual security guarantees but also increases the level of decentralization among the Cosmos ecosystem chains in the re-staking alliance, further promoting the development and prosperity of the entire ecosystem.