Your Guide to Staking on pSTAKE — Unlocking Liquidity of Staked Assets
Persistence is really maintaining that push to help unlock the full potential of Proof of Stake (PoS) & DeFi. This release of their staking platform, pSTAKE, has given this increasing surge a great perspective as we see our staked assets getting us more value in what is referred to as liquid staking. With liquid staking, you can make use of your staked assets when they are still locked for other purposes that can generate yield for you.
The moment we had all been waiting for arrived as pSTAKE went live, allowing holders of Cosmos’s gem, ATOM, to be issued representative tokens on the Ethereum mainnet for use in DeFi operations for more yield.
After the launch, a lot of $ATOM holders flocked to pSTAKE to unlock liquidity of their staked assets & also get early incentives. With that, pSTAKE accrued over $100,000 in total value locked (TVL), just within 24 hours of the launch. If ever you were looking for a sign to show that this concept of liquid staking was accepted, then, this was it. It didn’t end there though.
This was a sign of things to come.
In under 48 hours, the total value locked (TVL) had exceeded $150,000. Talk about adoption and acceptance.
I rushed out to join the flurry of users so as to be among the early riders and earn massive rewards from staking my ATOM and using the staked replicas for various DeFi activities like lending, borrowing and trading. There is a current staking APR of 7% on the app.
Here is a very simplified guide to staking on pSTAKE. There are a series of steps and you can take your time to go through.
Step 1: Go to the pSTAKE app.
Your first step would be to visit the pSTAKE app, app.pstake.finance and connect your Ethereum wallet to the app. You could use any ERC20 based wallet but I feel better using Metamask for this.
Next step would be to approve the addition of pATOM to your Metamask. It pops up automatically and you just have to press approve.
After this, you do the same for stkATOM. Approve its addition to your Metamask.
With this, your Metamask (or any other ERC20 wallet) would be connected to the platform.
Step 2: Wrap ATOM and connect your Cosmos Wallet.
Now, you need to wrap your ATOM. Go to the “Wrap Tab” and try to wrap your ATOM. There would be a pop up through which you can connect your Cosmos wallet. I used a Keplr Wallet for mine.
Next step would be to approve that transaction in your Cosmos wallet (Keplr Wallet) and the wrapped ATOM would then be visible in your Ethereum wallet (Metamask).
With this, you have wrapped your ATOM and it’s now deposited on pSTAKE.
Step 3: Stake your deposited ATOM and receive stkATOM
Your ATOM is deposited and you’re ready to get to the next step.
Go to the Stake tab on your pSTAKE app and enter the amount that you want to stake.
After putting the amount to stake, you can then press the “STAKE” button.
There would be a pop up for you to approve the transaction. Follow the prompt.
Once this is done, stkATOM would then reflect in your Ethereum wallet (Metamask).
With this, your ATOM is staked on the platform and you’d receive your staking rewards in the form of pATOM.
Step 4: Unstake stkATOM to receive pATOM
Now you have staked, you can now unstake to claim rewards when you want to.
This follows a very simple procedure that is as easy as the staking process above.
Go to the Stake tab on your pSTAKE and enter the amount that you want to unstake.
Press the ‘Unstake’ button and click the approval button when the pop up comes.
Unstaking would take between 21 to 24 days to show and this would reflect in the pATOM unbonding balance on the right bar of the app.
You can then redeem your rewards once the unbonding period is over.
Rewards all the way!!!
Step 5: Unwrap your pATOM back to ATOM
Go to the “Wrap Tab” on your pSTAKE app and start the unwrapping process. N.B. It should be more than 5 ATOM.
At this point, you’d have to enter the cosmos address that you’d use to receive the ATOM you’re unwrapping.
Press the “Unwrap” button and you’d see a pop up to approve the transaction on your Ethereum wallet (Metamask).
The moment the transaction is approved, you will see the ATOM in your Cosmos wallet.
More info for staking on pSTAKE
The staking process is really great and worthwhile. Here are a few extra details though about it.
- The rewards accumulate after every block
- The staking rewards you get would be received in the form of pATOM.
- You’re free to claim your rewards at any time from the right bar.
- There is a beauty to this. The rewards accrued during the staking process can be staked again. You can also exchange it with other ERC20-based assets. Finally, you can then unwrap it for ATOM again.
- You can swap the stkATOM with other ERC-20 assets for instant liquidity once LPs are created. This would be a very important feature on pSTAKE.
- The only way that you can see your pATOM balance updated is when you redeem the pATOM from the right bar on the app.
- Your staking rewards would be added to your pATOM balance when you unstake your stkATOM.
The pSTAKE platform is really a great one and you’d be glad to put your ATOM to good use.
There are many other functions you can get on the platform.
- You can check your transaction status on the pSTAKE platform with ease.
- You also have access to a series of pSTAKE docs for your own pleasure.
- You can report any of your issues or problems that you face while using the pSTAKE app. All you have to do is simply raise a ticket.
Please don’t leave your ATOM assets to just stay in your wallet. Put it to good use on pSTAKE as we #UnlockLiquidity of your staked assets.
pSTAKE website: http://www.pstake.finance
pSTAKE App: app.pstake.finance
Persistence Website: https://persistence.one