The Persistence developers delivered a new-generation product for liquid staking called pSTAKE. Users are able to convert their cryptocurrencies into useable staked tokens. The stk-tokens can be used widely within the DeFi industry thanks to the unique functionality of transferring between different networks and receiving rewards for staking, while being able to participate in DeFi activities at the same time. Before now, this was unheard of, once assets were staked they were locked out of all other activities. Now users can have their stake and use them too...
The product currently supports staking for ATOM, Ethereum, BNB and XPRT in Cosmos and Persistence blockchains, respectively, and issues tokens on the Persistence Core-1 chain. It was announced that more chains would be added to the product in the future, as this is only the beginning.
pSTAKE is the first liquid staking application on the Cosmos Hub, designed to forever enhance the potential of staking crypto assets. The developers tested the minimum viable product thoroughly and gathered feedback from early customers. This allowed them to refine the product and create a user-friendly experience with seamless user interface. Although pSTAKE has been running since the summer of 2021, it continues to evolve with new features and designs being added. For a more comprehensive understanding of pSTAKE, we highly recommend this short video from the Persistence team.
Crypto assets can be staked directly by using the pStake application to take advantage of its wider functionality. XPRT token stakers will benefit from all Persistence products, including pSTAKE, Comdex, Asset Mantle, and other upcoming product solutions. They will be rewarded with a portion of the generated commissions.
In conclusion, liquid staking is a mechanism that allows otherwise locked staked assets, to be made liquid and utilized in various ways. This is achieved through the use of smart contracts, where users deposit tokens and validators are delegated on behalf of the protocol. The main goal of liquid staking is to maintain staked positions while seeking out the best returns for capital. This is done by creating an asset representative of the native bonded token that can be used by DeFi protocols.
The widespread adoption of liquid staking is expected to result in the convergence of bonded stake towards a value close to 100%, as the liquid version of the underlying token can be traded on markets. This ensures that the security of the underlying chain reaches its theoretical maximum while also maintaining a liquid supply. With liquid staking, delegators can benefit from the flexibility of having their tokens available for use in other protocols while still earning staking rewards.