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

Persistence is one of the application chains in the Cosmos ecosystem that first enabled IBC, CosmWasm, and liquid staking modules. By deeply cultivating products related to POS and liquid staking, 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 pSTAKE for liquid staking growth and shared 15% of the liquid staking revenue with Cosmos Hub.

Persistence Ecosystem Overview

According to official data, the Persistence ecosystem has a TVL of approximately $14.78 million, with an IBC trading volume of $15 million in the past 30 days and an average transaction cost of less than $0.005. The 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 staked, with an annualized yield of 16.7%. A higher staking rate usually indicates a stronger network security and participation. The infrastructure of Persistence consists of 6 nodes and 100 validators, jointly ensuring the decentralization and security of the network.

Recent data shows that Persistence's 24-hour IBC trading volume reached $260,800, with 4,955 transactions, including 616 IBC transactions. There are 932 active addresses, with 86 IBC active addresses. IBC inflow continues to be higher than 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. Through IBC, Persistence connects to 54 Cosmos application chains, enabling trustless communication, transfer, staking, and liquid staking of tokens. Additionally, Persistence leverages Interchain Accounts (ICA) to achieve ICA Liquid Staking, enhancing the efficiency and flexibility of staking and liquid staking.

liquid staking

In the Cosmos ecosystem, liquid staking involves two roles: validators and delegators. Validators run hardware and blockchain applications based on the Cosmos SDK, reach consensus with other validators, and propose and validate new blocks. Delegators can choose the validator nodes to delegate to when staking.

If a validator exhibits negative behavior, the delegator's stake deposits may be reduced. For example, a validator being continuously offline may incur a penalty of 0.1%, while a double-signing violation could result in a 5% penalty. This mechanism prevents malicious behavior and maintains network efficiency and security through economic incentives and potential penalties.

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, and upon completion, they receive the corresponding staking rights token (e.g., stkATOM).

The features of pSTAKE include:

• Auto Compound: Stake earnings are automatically reinvested
• Flexible unstaking: Standard unbinding takes 21-25 days, or you can pay a 1% fee for a quick unbinding.
• Multi-chain support: Currently supports staking for tokens such as ATOM, OSMO, DYDX, STARS, and HUAHUA.

It is worth noting that regardless of which chain's assets are staked, a small amount of $XPRT is required as gas fees.

stake derivatives

The Persistence ecosystem offers a variety of stk asset derivatives, such as directly exchanging stk assets and native assets on DEX, or combining stk assets with native assets to provide Liquidity for higher returns.

$XPRT stake

As an independent blockchain, Persistence also needs to stake to enhance network security. Users can conveniently stake $XPRT in the Persistence official site or in the Keplr wallet.

stake security

Persistence and pSTAKE are both open-source projects that collaborate with multiple security firms, including Halborn, PeckShield, and Certora, to provide comprehensive support for the security of staking and liquid staking.

Re-staking Innovation

Persistence is building the Restaking infrastructure in Cosmos, allowing users to deposit liquid staking tokens into Persistence for restaking, thereby securing additional chains and earning more rewards.

Re-staking Alliance

The re-staking module developed based on the Alliance module supports staking of multiple assets, forming a re-staking asset alliance. Alliance members distribute rewards according to the asset's reward weight, creating a community of shared interests, which helps to improve the security and decentralization of the Cosmos ecosystem.

Re-staking yield source

After the re-staked tokens are locked, the system mints native tokens proportionally and stakes them to the validators. The staking rewards obtained are distributed to the holders of the re-staked assets, which not only serves as a source of income from re-staking but also further enhances the security and liquidity of the Cosmos ecosystem.

Summary

Persistence is deepening its influence in the Cosmos ecosystem through innovative liquid staking and re-staking solutions. Its re-staking alliance establishes a cross-chain community of interest for participants, enhancing mutual security while also increasing the level of decentralization within the Cosmos ecosystem. These innovations bring greater security, asset liquidity, and ecological participation to the Cosmos ecosystem.