The Impact of Persistence on the Cosmos Ecosystem

Persistence is one of the important application chains in the Cosmos ecosystem, being the first to implement features such as IBC, CosmWasm, and liquidity staking module (LSM). By deeply cultivating POS and liquidity staking-related products, it has built a complete liquidity staking and re-staking architecture for the Cosmos ecosystem.

On December 5, 2023, the Cosmos community voted to allocate 600,000 ATOM to pSTAKE for the development of liquid staking services. pSTAKE will share 15% of the liquid staking revenue with Cosmos Hub.

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.

Data shows that Persistence has established 121 channels with 44 other regions in the Interchain network, demonstrating its high interconnectivity. The staking rate of the network token $XPRT is as high as 74.7%, with an annualized yield of 16.7%, reflecting the network's 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 past 24 hours, the IBC trading volume of Persistence reached $260,800, with a total of 4,955 transactions, including 616 IBC transactions. There are 932 active addresses, with 86 active IBC addresses. The inflow of IBC funds continues to exceed outflow, indicating 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. DApps developed with CosmWasm can run across chains through IBC, providing convenient, secure, and efficient technical support for liquid staking.

Persistence connects to 54 Cosmos application chains through IBC, enabling trustless communication, transfer, staking, and re-staking of tokens, laying the ecological foundation for staking and re-staking within the Cosmos ecosystem.

In addition, Persistence has implemented ICA Liquid Staking using Interchain Accounts (ICA). Interchain Accounts allow an account on one chain to perform operations on another chain, enhancing the efficiency and flexibility of staking and restaking.

Liquidity Staking

In the Cosmos ecosystem, liquid staking includes two roles: validators and delegators. Delegators can choose the validator node 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, the staked deposits of the delegators will be subject to corresponding penalties. For example, if a validator remains offline continuously, it may lead to a reduction of 0.1% in the delegator's staked deposits; if a validator engages in severe violations such as double signing, the staked deposits may 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 also earning token rewards.

pSTAKE staking

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. Once the staking is completed, the pSTAKE protocol issues the corresponding staking rights tokens to the user's wallet, such as stkATOM for staking ATOM.

pSTAKE offers an automatic compounding feature. Taking stkATOM as an example, the daily staking rewards of (ATOM) will automatically enter the stake, continuing to earn rewards. This means that the amount of staked ATOM corresponding to each stkATOM will increase, allowing users to receive more ATOM when they unstake.

Users need to wait 21-25 days when canceling staking, or they can pay a 1% fee to immediately unstake. When unstaking, the corresponding stk assets will be destroyed.

Staking Derivative Products

Persistence and the Cosmos ecosystem have launched more stk asset derivatives. For example, stkATOM can be directly exchanged for ATOM on certain DEXs without the need to unstake or pay additional fees. stk assets can also add liquidity in DEXs alongside native assets to achieve higher yields.

$XPRT Staking

As an independent blockchain, Persistence also requires staking to enhance network security. Users can conveniently stake $XPRT in the official Persistence platform or certain wallets by selecting the validator node they wish to stake with.

Staking Security

Persistence and pSTAKE are both open-source programs, which is an important guarantee of security. The pSTAKE program is developed by 72 developers and is continuously updated and maintained.

In addition, Persistence and pSTAKE collaborate with multiple security agencies to provide comprehensive support for the security of staking and re-staking. These agencies include well-known blockchain and crypto security audit firms, global security research and consulting companies, smart contract security audit agencies, DeFi vulnerability bounty platforms, and blockchain security real-time monitoring networks.

Re-staking Innovation

Persistence is building 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, and LP tokens.

Re-staking Alliance

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

Re-stake the alliance to share staking rewards, and the stakers of various assets distribute the rewards according to the asset's reward weight. The reward weight for $XRPT is 1, while the reward weights of other assets are determined and adjusted through decentralized governance.

This staking asset alliance reward distribution mechanism will create a community of interests composed of re-staked assets, which is beneficial for enhancing the security and decentralization of the Cosmos ecosystem.

Re-staking income source

The tokens used by users for re-staking will be locked and proportionally minted into native tokens, which enter the staking module to be staked to validators in the role of delegators. For example, the stkATOM and stTIA staked by users will be locked in the re-staking module on the Persistence chain and proportionally minted into $XPRT. These $XPRT will be staked to validators, and the staking rewards earned will be distributed to stakers of stkATOM and stTIA.

Conclusion

Persistence provides an effective and secure economic infrastructure for liquid staking and restaking within the Cosmos ecosystem. Through an innovative restaking scheme, Persistence has established an economic alliance for restakers, which not only enhances mutual security guarantees but also increases the level of decentralization within the restaking alliance of the Cosmos ecosystem. This innovative model is gradually deepening Persistence's influence within the Cosmos ecosystem, bringing higher security, asset liquidity, and participation to the entire ecosystem.