pSTAKE Finance brings liquid staking and a new airdrop to the Cosmos ecosystem
One of the most significant transitions to occur for the cryptocurrency ecosystem since the launch of Bitcoin (BTC) has been the increasing dominance of proof-of-stake (PoS) protocols over the proof-of-work (PoW) model, primarily due to energy requirements of the PoW model and growing concern over its environmental impact.
As more projects launch or transition to the PoS model, a new class of protocols have emerged that are focused on offering liquid staking options that allow token holders to tap into the value held in their staked tokens while still earning a yield for locking their assets on the network.
pStake Finance is one of these platforms and here's a brief look into its long-term goal of adding utility to the proof-of-stake model and how it differs from similar protocols.
The pStake project is part of the Persistence (XPRT) protocol, a multi-chain tech stack that supports Cosmos (ATOM), Ethereum (ETH) and other Tendermint-based chains. The long-term mission of Persistence is to create an ecosystem of multi-chain Web3 products designed to stimulate global liquidity and enable simplified value exchange.
The project got a boost in November 2021 after it successfully completed a $10 million seed funding round from investors that include Three Arrows Capital, Galaxy Digital, Coinbase Ventures and Alameda Research.
The funds raised during the seed round have been used to provide the reserves necessary to bootstrap liquidity staking on the protocol and ensure that there was enough liquidity for users to engage with the platform.
Since its launch, pStake has offered liquid staking for Cosmos and XPRT, which have annual yields of 12% and 32%, respectively. Users who deposit ATOM or XPRT on the protocol receive stkATOM
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