Maximizing the value of your staked assets — pSTAKE to go LIVE!!!
Staking for me has become an everyday venture. Leaving your assets in your wallet just like that is great in itself as you can get more value for these assets when the value of the tokens appreciates. You’d be seeing an increase in the worth of your portfolio without actually doing anything. Wow!!! This is great. I recently started staking.
Yes! I started staking.
Staking is actually leaving your coins in a wallet but this time you’re not just holding. Rather, you’re doing it to support the operations of a blockchain network whilst providing security. The proof of stake consensus protocol allows you to earn rewards by committing your assets to the network in a move that would help validate the next block to the growing chain while earning rewards. Now, I get to increase the value of my portfolio when the asset increases in value and also when the rewards from staking start trickling in. This is massive! Just when I thought I was sky-high, I saw liquid staking as offered by Persistence’s next-gen product, pSTAKE. pSTAKE would help unlock the liquidity of your staked asset.
When you stake your coins, the assets are locked for the period of staking. You can’t use them for any other processes . The rewards just trickle in until you unstake. You can then recover your funds. When you stake on pSTAKE, however, the coins are locked and you are given a representative to come with which you can use to do other things. Let’s take an example, you stake ATOM on the pSTAKE platform, the protocol issues you a replica, pATOM, with which you can use for other DeFi processes like trading, lending and borrowing. This gives you more value for your staked assets. You can earn normal staking rewards and also get to use your assets for other processes, effectively unlocking the potential of your staked assets.
Then came the main event.
Following the successful testing and refining of their Alpha through the bug bounty program followed by the Staking Gala, pSTAKE is set to launch their Beta on Mainnet on 12th July, 2021 at 13:00 UTC+1.
It’s the moment we’ve all been waiting for as pSTAKE goes live, allowing ATOM holders to be issued representative tokens on the Ethereum mainnet for use in DeFi.
To prevent transaction spamming, they’ve set a minimum cap of 5 ATOMs and a maximum cap of 500 ATOMs with a daily total of 50,000 ATOM. Every monday after the week of release, the total wrap cap would be increased by 15,000 ATOM and after the 6th week (23rd August, 2021), the cap would be removed entirely.
Early users wouldn’t be left out as they get rewarded for coming first. Their incentives include 0% wrapping fees and 0% service fees although validator commission rates will still apply.
Once the platform has attracted 125,000 ATOM in TVL, pSTAKE will create a liquidity pool on a DEX, which users would utilize to supply liquidity and earn trading fees along with staking rewards. pSTAKE will also look to whitelist a set of top validators to delegate users’ assets to. Your security is their concern.
To cap it all up, pSTAKE will be whitelisting several pools and only users who provide liquidity to these whitelisted pools will be able to earn staking rewards.
More details of this here
Official Blog: https://medium.com/persistence-blog
pSTAKE website: https://pstake.finance