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

Persistence is one of the application chains in the Cosmos ecosystem that first enabled IBC, CosmWasm, and the liquid staking module (LSM). 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.

In December 2023, the Cosmos community voted to allocate 600,000 ATOM to promote the development of liquid staking for pSTAKE. pSTAKE commits to sharing 15% of the liquid staking revenue with the Cosmos Hub.

Persistence Ecosystem Overview

According to official data, the total locked value of the Persistence ecosystem ( TVL ) has reached 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.

According to the data, Persistence has established 121 channels with 44 other zones in the Interchain network, demonstrating a high degree of interconnectivity. 74.7% of the network token $XPRT is in stake, with an annualized staking yield of 16.7%. This indicates that the network has high security and participation.

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

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 are 932 active addresses, with 86 IBC active addresses. The IBC inflow continues to exceed outflow, reflecting 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. DApps developed with CosmWasm can operate across chains via IBC, providing convenient, secure, and efficient technical support for liquid staking.

Persistence connects 54 Cosmos application chains through IBC, enabling trustless communication, transfer, staking, and liquid staking of tokens, laying the foundation for staking and liquid staking in the Cosmos ecosystem.

Using Interchain Accounts (ICA) to achieve ICA Liquid Staking allows an account on one chain to perform operations on another chain, improving the efficiency and flexibility of staking and restaking.

Staking and Network Security in the Cosmos Ecosystem

In the Cosmos ecosystem, liquid staking includes two roles: validators and delegators. The staker ( and delegator ) can choose the validator node to delegate to. Validators run 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. Misconduct may result in a reduction of the staked deposit by 0.1%, while extremely malicious actions ( such as double signing ) may lead to a reduction of 5%.

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 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. Upon completion of staking, the pSTAKE protocol will issue corresponding staking rights tokens to the user's wallet, such as stkATOM for staking ATOM.

automatic compound interest

Taking stkATOM as an example, the user's daily staking rewards (ATOM) will automatically enter the stake, continuing to earn rewards. This means that the staked ATOM corresponding to each stkATOM gradually increases, allowing users to obtain more ATOM when they unstake. Therefore, the staking rewards are reflected in the growth of the stkATOM/ATOM ratio.

Unstake

Users need to wait 21-25 days to cancel their stake; they can also pay a 1% fee to immediately解除质押. When retrieving the stake, the corresponding stk assets will be destroyed.

Stake Derivatives

Persistence and the Cosmos ecosystem have launched more stk asset derivatives. On the DEX, users can directly exchange stkATOM for ATOM without needing 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 on the official Persistence website or in the Keplr wallet.

stake security

Persistence and pSTAKE are both open-source programs, which is an important guarantee of security. The pSTAKE program has been contributed to by 72 developers, with the most recent code submission just 2 days ago.

Persistence and pSTAKE collaborate with multiple security organizations to provide comprehensive support for the security of staking and liquid staking, including well-known blockchain security audit firms such as Halborn, PeckShield, and Certora.

Re-staking Innovation

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

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 distribute rewards based on asset reward weight, creating a community of interests that helps enhance the security and decentralization of the Cosmos ecosystem.

Re-staking income sources

The tokens used by users for re-staking are locked and a proportionate amount of native tokens are minted into the staking module. These newly minted tokens are staked to validators, and the earnings are distributed to the original stakers. This mechanism further enhances the security and liquidity of the Cosmos ecosystem.

Summary

Persistence provides an effective and secure economic infrastructure for liquid staking and restaking in the Cosmos ecosystem. Through an innovative restaking scheme, Persistence establishes an economic alliance for restakers, which not only enhances mutual security but also increases the level of decentralization within the Cosmos ecosystem. Persistence is gradually deepening its influence within the Cosmos ecosystem, bringing greater security, asset liquidity, and participation to the entire ecosystem.