pSTAKE Mainnet Launch: Beta Releasing with Cosmos ATOM Support on July 12th

pSTAKE Finance

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pSTAKE

6 min readJul 9, 2021

TL;DR:

The Beta of pSTAKE’s liquid staking solution will be released on mainnet on July 12th, 12:00 UTC.
pSTAKE will enable liquid staking for Cosmos Network. ATOM holders will be able to deposit their native tokens and mint representative tokens on the Ethereum mainnet.
The Beta release is capped to ensure a smooth rollout. Deposits will initially be capped at a total of 50,000 ATOM, increasing by 15,000 ATOM every week thereafter until the cap is removed on August 23rd (tentative date).
Initial wrapping cap per wallet will be set at 500 ATOM, with a minimum deposit of 5 ATOM. Any transactions exceeding the wallet cap/platform cap will be reversed.
Early user incentives (active until the uncapped release) include wrapping fees of 0% and service fees of 0%. Please note that validator commissions will still apply.
Please be advised that pSTAKE is currently still undergoing its security audits; use only at your own risk.

After successfully testing and refining our Alpha via our bug bounty program followed by our Staking Gala, we are set to launch our Beta on mainnet on July 12th, 2021 at 12:00 UTC.

This launch will see the birth of the most efficient liquid staking solution for Cosmos (ATOM), enabling ATOM holders to issue representative tokens on the Ethereum mainnet for use in DeFi!

Introducing pSTAKE: Unlocking Liquidity of Staked Assets

Take a deep dive into pSTAKE’s design and how pSTAKE aims to unlock liquidity of some of the most prominent PoS network…

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To learn more about pSTAKE’s Beta launch, please continue to read the details below.

Please note: pSTAKE’s security audits are still currently ongoing. We advise that you use the platform at your own risk.

Overview & Official Launch Schedule

pSTAKE is thrilled to be launching its Beta liquid staking solution, with support for the Cosmos Network (ATOM), on July 12th, 2021 at 12:00 UTC! To ensure that everything runs as smoothly as possible, we have implemented a capping schedule for the first few weeks after launch.

There will be a minimum deposit per transaction of 5 ATOM at launch, to prevent transaction spamming. The deposit (or wrapping) cap will be 500 ATOM per wallet and 50,000 ATOM total. Each Monday for the following 5–6 weeks an additional 15,000 wrap/deposit will be available. These deposits will be available on a first-come, first-served basis.

Here’s the full schedule:

12 July: 50,000 ATOM Total Cap
19 July: 65,000 ATOM Total Cap
26 July: 80,000 ATOM Total Cap
2 July: 95,000 ATOM Total Cap
9 Aug: 110,000 ATOM Total Cap
16 Aug: 125,000 ATOM Total Cap
23 Aug: Removal of Total Cap

At 12:00 UTC on each Monday following the launch, the deposit cap will be increased.

Limitations

There will be a 5 ATOM minimum deposit to prevent spamming of transactions on the bridge
There will be a 500 ATOM maximum deposit/wrapping cap per wallet

Any transactions performed exceeding the wallet cap/platform cap will be reversed.

Note: In order to earn staking rewards when using a third-party platform/application, the smart contract of the third-party dApp must be whitelisted by pSTAKE. This will only be done after the launch of the uncapped v1 of pSTAKE.

Early User Incentives & Rewards Program

Early user incentives will be implemented from launch to encourage pioneers to experiment with our fledgling protocol. These incentives will be available for a short time — only until the cap removal on August 23rd, 2021.

Early user incentives include 0% wrapping fees and 0% service fees. Please note that the 0% service fee applies to fees from using pSTAKE. Validator commission rates do still apply, but pSTAKE will not charge a fee on top of this.

We’re planning to introduce additional incentives moving forward to reward pSTAKE’s inaugural users for their foundational support. More details will follow.

Initial Liquidity

Initial users of pSTAKE will not receive the benefit of being able to exit their staked positions early or access early liquidity. Additionally, if a user chooses to unstake their deposited assets via pSTAKE, they will still have to wait for the 21-day unbonding period to conclude to withdraw their ATOM.

The reason for this is that we will not be creating any liquidity pools until the platform reaches a solid amount of TVL, in order to enable the creation of liquidity pools that do not hamper the peg of the representative tokens.

For example:

If pSTAKE has very little liquidity, creating smaller liquidity pools could cause the peg between the staked representative and the unstaked representative (pATOM) to break. This would result in the peg breakage between pATOM and ATOM itself.

To avoid this, once the platform has attracted 125,000 ATOM in TVL, we will create a liquidity pool on a DEX, which users can utilize to supply liquidity to earn trading fees along with staking rewards. pSTAKE will whitelist a set of top validators to delegate users’ assets to.

pSTAKE will be whitelisting several pools. Only users who provide liquidity to these whitelisted pools will be able to earn staking rewards.

Commission Rates for Staking

The commission rate for using pSTAKE depends on the set of whitelisted validators, though it is expected to be below 10% for the time being. Initially, all whitelisted validators will receive equal delegations through pSTAKE; however, this can be changed through governance later.

The formula for staking commission rates (if n validators are whitelisted):

Average commission rate for n validators = (CVal1 + CVal2 + CVal3 +….+ CValn)/n

Although initially validators will get equal distribution in the pursuit of decentralization, an even more decentralized whitelisting process will be put into place after the deposit cap is removed.

We will be sharing the finalized list of whitelisted validators soon.

Get Ready to Experience the Power of pSTAKE!

We’re excited to have you be among the first to participate in the pSTAKE mainnet launch, taking part in the ability to unlock liquidity of staked PoS assets from around the crypto-verse! But before you do, we want to remind everyone one last time that pSTAKE’s security audits are still underway. Please use the platform at your own risk.

We’re about to bridge the $630B PoS ecosystem with the booming $54B DeFi ecosystem on Ethereum. Staking will never be the same again. Are you ready?

About pSTAKE

pSTAKE is a liquid staking solution that unlocks the potential of staked PoS assets (e.g. ATOM). PoS token holders can deposit their tokens on the pSTAKE application to mint 1:1 pegged ERC-20 wrapped unstaked tokens represented as pTOKENs (e.g. pATOM) that can then be transferred to other wallets or smart contracts on the Ethereum network to generate additional yield.

The pSTAKE Staking Gala shall soon be followed by the mainnet launch for Cosmos (ATOM), Persistence (XPRT), and many more prominent PoS networks, the details of which shall be announced later.

We have a bag full of new features and an exciting roadmap for the coming months, so follow pSTAKE on Twitter and hop onto our Discord channel to stay up-to-date with the latest developments.

About Persistence

Persistence is an interoperable protocol enabling the creation of innovative solutions to expand the DeFi and NFT sectors, in addition to bridging traditional finance and DeFi.