The PoS consensus mechanism has been an asset to the Proof-of-Stake (PoS), industry for many years. This is not only a practical and easy way to protect blockchain networks, but it also provides a way for participants to get high APYs for taking part in staking. But, many people are discouraged from taking part in staking because staked assets can be locked up for long periods.
This is precisely why liquid staking as a means of unlocking liquidity of staked assets is being explored within DeFi, and leading the charge in this realm is the Tendermint/Cosmos-based Persistence network. Persistence allows the development of a range of products to make liquid staking the standard form of staking. The Persistence network, which has the $XPRT and $PSTAKE tokens at its helm to help capture the growing ecosystem’s value, is well-positioned to be the center for liquid staking in the DeFi.
A Symbiosis Like Never Before
As we have already mentioned, Persistence is an industry layer-1 blockchain network. It aims to create an ecosystem that promotes liquid staking. Tokenized derivatives or tokenized versions of staked assets are issued to increase their liquidity. They can be used to transfer funds, store them, and then spent in the same way as any other tokens. This is why pSTAKE (the Persistence ecosystem’s flagship product) is considered the best example of liquid stake.
This protocol allows token holders to place their PoS assets through the pSTAKE Protocol to get 1:1 pegged STKASSETs. They can then be spent on DeFi protocols or generate more yield. Staked PoS assets via pSTAKE go to top validators from their underlying network. The full stake rewards on assets are shared with top validators on their underlying networks. Users can also re-use these assets via DeXs or DeFi lending protocols. By staking $PSTAKE, token holders can participate in platform governance.
Additionally, $PSTAKE can be used to reward the usage of protocols and products created by Persistence to develop innovative use cases for unlocked stkASSETs. The protocol described above is designed to increase liquidity in DeFi by unlocking billions worth of assets. They can be integrated into existing protocols and will help to grow the entire industry.
While Persistence has pSTAKE as its signature protocol but plans to develop an entire DeFi network that includes the stkASSETs in the heart of their operations. This will create utility and help them. The native token $XPRT of the Persistence network is in an ideal position to encourage the creation of new protocols and maximize the value of this ecosystem. Users of pSTAKE or these new protocols pay $XPRT user fees, gas fees, and other fees. This money is then partially channeled into $XPRT stakers helping to protect the persistence chain.
So, $PSTAKE as well as $XPRT form a unique partnership. One of them encourages new utility creation for liquid-staked assets. The other incentives their use and ultimately positions Persistence as the leading liquid staking platform.
Next Generation of DeFi
With DeFi’s mainstream adoption underway, the industry is taking strides toward fixing gaps that could potentially hinder its adoption. The lack of utility for staked assets was a concern that has been ignored for many years and is now fully visible. Persistence networks have taken steps to address this issue with liquid staking. DeFi’s next iteration will be more than just speculation. It will provide a financial infrastructure that users can use.