Persistence: A Pioneer in Liquid Staking and Re-staking Innovations in the Cosmos Ecosystem

Persistence is one of the first application chains in the Cosmos ecosystem to implement IBC, CosmWasm, and liquid staking modules. By focusing on POS and liquid staking related products, this project has built a complete liquid staking and re-staking infrastructure for the Cosmos ecosystem.

On December 5, 2023, the Cosmos community voted to allocate 600,000 ATOM to pSTAKE for liquid staking growth and share 15% of liquid staking revenue with Cosmos Hub. This decision highlights Persistence's important position within the Cosmos ecosystem.

Overview of the Persistence Ecosystem

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 past 30 days and 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, demonstrating a high degree of interconnectivity.

Currently, 74.7% of the network token ($XPRT) is staked, with an annualized yield of 16.7%. A higher staking rate usually indicates that the network has greater 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 reached $260,800, with 4,955 transactions, including 616 IBC transactions. There were 932 active addresses, with 86 IBC active addresses. It is worth noting that IBC inflows continue to exceed outflows, which may indicate that more and more value is flowing into Persistence and participating in staking.

Technical Support

Persistence supports the CosmWasm framework, allowing developers to write secure and interoperable smart contracts using the Rust language. These contracts can run across chains via IBC, achieving cross-chain interoperability for applications, 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 restaking of tokens, laying a solid ecological foundation for staking and restaking in the Cosmos ecosystem.

In addition, Persistence also utilizes Interchain Accounts (ICA) to implement 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 re-staking.

Cosmos Ecosystem Staking and Network Security

In the Cosmos ecosystem, liquid staking involves two roles: validators and delegators. Stakers (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, its delegators will also face corresponding penalties. For example, if the validator goes offline accidentally or maliciously, the delegator's stake deposit will be reduced by 0.1%. In the case of extreme malicious behavior such as double signing, the stake deposit will be reduced by 5%.

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.

pSTAKE staking platform

pSTAKE provides a streamlined 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. After the staking is completed, users will receive the corresponding staking rights tokens, such as stkATOM for staking ATOM.

A key feature of pSTAKE is automatic compounding. Taking stkATOM as an example, the user's daily staking rewards (ATOM) are automatically staked to continue earning rewards. This means that the amount of staked ATOM corresponding to each stkATOM will gradually increase, and users will receive more ATOM when they unstake.

When unbinding the stake, users need to wait for 21-25 days; they can also pay a 1% fee for a lightning unbinding of the stake. When retrieving the stake, the corresponding stk assets will be destroyed.

Stake Derivatives

Persistence and the Cosmos ecosystem have launched various stk asset derivatives. For example, on certain DEX platforms, users can directly exchange stkATOM for ATOM without needing to unstake or pay additional fees. Furthermore, the combination of stk assets with native assets can also add Liquidity in DEXs, resulting in 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 site 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 and maintains active updates.

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 cryptocurrency security audit firms, global security research and consulting companies, smart contract security audit firms, DeFi vulnerability bounty platforms, and real-time monitoring and alerting networks for blockchain security.

Re-staking Innovation

Persistence is building the 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, LP tokens, and more.

Re-staking Alliance

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

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 interests for re-staked assets, which helps to enhance the security and decentralization of the Cosmos ecosystem.

Source of re-staking income

Tokens used by users for re-staking will be locked and native tokens ($XPRT) will be minted in proportion. These $XPRT will be staked to validators, and the staking rewards obtained will be distributed to various types of stakers. This is not only a source of revenue for Persistence's 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 innovative re-staking solutions, Persistence establishes an economic alliance for re-stakers, which not only enhances mutual security assurances but also improves the level of decentralization among the Cosmos blockchain within the re-staking alliance. As its influence continues to grow, Persistence is bringing higher security, asset liquidity, and ecosystem participation to the Cosmos ecosystem.