In a small market like crypto, maximizing capital efficiency has always been crucial. The advent of DeFi 2.0 with the focus on capital efficiency is a clear explanation for this thesis.
Just like how Abracadabra enables the usage of interest-bearing tokens, what if we can produce further use cases for staking tokens? It turns out that pSTAKE Finance does introduce a solution.
What is pSTAKE Finance?
pSTAKE Finance is a liquid staking protocol on the Persistence blockchain that allows the use of staked assets. Staking native coins like SOL, ATOM, DOT,... has been in massive demand, however, this created an illiquid market.
While tokens are being staked, they cannot be used elsewhere. As mentioned, in a fairly new market like crypto, assets need to be constantly moving around and create as many markets as possible. Staking, beneficial in some aspects as it is, has prevented this from happening.
pSTAKE Finance attempts to solve this problem by supporting further use cases of staked tokens.
What is PSTAKE Token?
PSTAKE is the governance and incentivization token of the pSTAKE protocol which allows users to participate in governance activities, as well as receive rewards in the form of the token itself.
How does pSTAKE Finance work?
The process that pSTAKE Finance sets out is pretty simple: Instead of just staking tokens, users will exchange them for pTOKENs at a 1:1 ratio. By staking pTOKENs, users will receive stkTOKENs, which can be used elsewhere with pretty similar use cases to the original tokens.
To clearly illustrate this process, let’s go through an example. Assume Alice has 100 ATOM.
- Alice deposits 100 ATOM into the pSTAKE protocol and receives 100 pATOM. Alice can get 100 ATOM back anytime by burning 100 pATOM.
- Alice can now stake 100 pATOM and earn staking rewards, just like how Alice normally stakes 100 ATOM. However, after staking 100 pATOM, Alice will receive 100 stkATOM.
- 100 stkATOM will be available to be used across different protocols, like farming on SushiSwap for example.
As you can see, thanks to the implementation of pSTAKE Finance, users can earn extra yields just by going through 2 additional steps, which enriches and flourishes the crypto market.
Furthermore, pSTAKE Finance also produced its own bridge to bring the usage of the platform to different blockchains. Currently, 2 networks are supported, which are Cosmos and Persistence.
Detailed information about PSTAKE Token
PSTAKE Key Metrics
- Name: pSTAKE Finance.
- Ticker: PSTAKE.
- Token standard: ERC-20.
- Token type: Governance, Utility.
- Max supply: 500,000,000 PSTAKE.
- Circulating Supply: Updating...
- Contract address: Updating...
PSTAKE Token Allocation
- Development Fund: 26%
- Treasury: 20%
- Strategic Sale: 20%
- Team: 16%
- Retroactive Rewards: 6%
- Public Sale: 5%
- XPRT Stakers: 3%
- Alpha Launchpad: 2%
- Protocol Bootstrapping: 2%
PSTAKE Token Sale
The PSTAKE Token Sale will take place on Coinlist.
- Registration Opens: December 7, 2021. Registration Deadline: December 13, 2021, at 23:59 UTC.
- Sale Period Begins: December 16, 2021, at 18:00 UTC. Sale Period Ends: December 22, 2021, at 23:59 UTC.
- Supply: 25M PSTAKE tokens.
- Price: $0.40.
- Lockup & release: 25% unlocks on January 25th, 2022, followed by a 6-month linear vesting schedule.
- Minimum Purchase: $100. Maximum Purchase: $500.
More information can be found here.
PSTAKE Token Release Schedule
PSTAKE Token Use Cases
Currently, the PSTAKE token has 2 use cases:
- Governance: Enable token holders to take part in governance activities.
- Incentivization: Incentivize users to partake in and contribute to the protocol.
How to get PSTAKE Token
You can get PSTAKE by:
- Participating in its Token Sale on Coinlist as mentioned above.
- Receiving the token airdrop if you held ATOM or XPRT at the snapshot time. More information can be found here.
- Farming with ATOM-ETH or XPRT-ETH on SushiSwap to earn yields and retroactive rewards. More information can be found here.
How to buy PSTAKE Token
Currently, there is no PSTAKE circulating in the market, so you cannot buy PSTAKE on Coin98 Exchange or anywhere else. In the future, when we are able to buy PSTAKE on Coin98 Exchange, I will update you in this article.
How to store PSTAKE Token
In the future, Coin98 Wallet will support storing the PSTAKE token. I will keep you updated in this article.
pSTAKE Finance Roadmap
- pSTAKE Launch - Persistence.
- pSTAKE Public Sale.
- pSTAKE Token Generation Event.
- Expansion to other Cosmos Chains.
- pSTAKE App-Chain Implementation.
- pSTAKE Launch Ethereum 2.0 & Solana.
- pSTAKE v2 Launch.
- DeFi Integrations.
- PoS Indexes and Vaults.
- PoS Asset Management.
Team, Investors and Partners
- Tushar Aggarwal - Co-Founder and CEO at Persistence.
- Deepanshu Tripathi - Co-Founder and CTO at Persistence.
- Mikhil Pandey - Project Lead at pSTAKE.
- Kamlesh Parikarath Marar - Engineering Lead at pSTAKE.
pSTAKE Finance has raised $10M in a strategic funding round led by Three Arrows Capital, Sequoia India, Galaxy Digital, and Defiance Capital.
Along with these ventures, pSTAKE Finance was also invested by some Angel Investors: Ajit Tripathi (Head of Institutional BD at Aave), Do Kwon (Founder of Terra), Tascha Punyaneramitdee (Co-founder of Alpha Finance), Darren Lau (The Daily Ape).
pSTAKE Finance has partnered with multiple validators to fortify and secure the platform.
Is pSTAKE Finance (PSTAKE) a good investment?
I hope that with the aforementioned information, you have understood what pSTAKE Finance is and how pSTAKE Finance works. This article should give you a deep insight into the project, so there is no financial advice. You should Do Your Own Research before conducting any investment, and be responsible for your own fund.
However, Coin98 will provide some notable points of the project to give you the best overview to make your own decisions.
pSTAKE Finance has been available for a few weeks. However, the TVL (Total Value Locked) within the protocol has not had any significant growth ever since its deployment. $30M is not a notable number for a DeFi protocol, especially ones like pSTAKE.
Let’s take a look at another protocol working with this idea - Lido. At the time of writing, Lido has supported 3 blockchain platforms, with total staking assets worth more than $10.5B. Compared to what Lido has achieved, pSTAKE Finance is currently left too far behind.
At the same time, we can see that Lido is supporting Ethereum, Terra, and Solana - 3 among the strongest blockchain ecosystems at the moment. As a result, Lido is able to capture so much value for the protocol.
On the other hand, pSTAKE Finance has only supported Cosmos and Persistence, with Ethereum coming up next. Cosmos and Persistence, however, have not grown significantly in multiple aspects compared to other ecosystems like Solana.
Hence, this will be the aspect that we should look at. From my perspective, what pSTAKE should do in an attempt to catch up with Lido are:
- Support more blockchain platforms, especially those with an enormous amount of assets and users. Some examples can be Avalanche, Fantom,...
- Create more use cases for staked assets. For instance, at the moment, staked assets in pSTAKE can only be used on SushiSwap, which is highly restricted. To form a more liquid market and attract more users to the platform, pSTAKE Finance needs to establish reasonable use cases for its stkTOKENs.