pSTAKE is a multi-chain liquid staking protocol that unlocks the liquidity of PoS assets by issuing staked representative tokens against users' bonded assets, allowing them to earn DeFi yields on top of the staking rewards. pSTAKE provides the most seamless staking and yield generation experience for the BNB holders.
Developed by Persistence, pSTAKE is a multi-chain liquid staking protocol that unlocks the liquidity of PoS assets by issuing staked representative tokens against users' bonded assets, allowing them to earn DeFi yields on top of staking rewards.
pSTAKE's liquid staking solution is live on four chains: BNB Chain, Cosmos, Ethereum, and Persistence. Additionally, pSTAKE is in the process of developing liquid staking solutions for other leading PoS networks.
While these numbers show promise in terms of staked value, the network would greatly benefit from having a higher staking ratio to ensure more decentralization and security.
One of the core reasons for the low staking ratio is the usage of BNB tokens in the extensive DeFi offered on the network. Since BNB is the network's native token, it boasts tremendous utility across the various dApps. High DeFi yields against 5% staking rewards make the users' choice very obvious.
The booming DeFi ecosystem on the PoS networks needs liquid staking. Traditional staking limits the yield opportunities for the users and presents user experience challenges. A few limitations:
That's where pSTAKE's liquid staking solution comes into play. With stkBNB, the user would receive instant liquidity (which can be used elsewhere, for example, in DeFi to generate additional yield) while still earning staking rewards on their staked assets. Simply put, the promise of liquid staking would incentivize more token holders to stake their BNB.
Here are some of the differentiating factors:
pSTAKE's BNB liquid staking solution will allow users to stake any non-zero amount of BNB. The user will be instantly issued stkBNB, which follows an exchange rate model (inspired by Compound's cToken model), and the native BNB token is staked on-chain.
The value of the user's stkBNB will keep increasing against BNB as it accrues staking rewards in the background. The protocol has even gone one step further to enable auto-compounding on the user's BNB staking rewards to allow them to generate the highest yields.
When a user performs an unstake transaction on the pSTAKE application, the stkBNB deposited by the user is burnt. The protocol creates a claim request for an equivalent amount of BNB based on the ongoing exchange rate (c-value) against the user's wallet.
Users can then claim the unstaked BNB from the pSTAKE application after 15 days (this allows the protocol to safely undelegate funds from validators). The user will stop earning rewards after performing the unstake transaction. Alternatively, users can skip the waiting period by swapping their stkBNB for BNB directly from the liquidity pools on DEXs such as PancakeSwap.
Read the full implementation Here and Watch the Video-Tutorial to stake BNB via pSTAKE!
The pSTAKE team's primary goal is to create high utility for stkBNB, and towards the same goal, stkBNB is already integrated with multiple leading applications within the BNB ecosystem. Some of them:
pSTAKE is committed to constantly bringing liquid staking innovation to popular PoS chains and DeFi ecosystems. pSTAKE is leading the charge and already beginning to gain traction. The rise in pSTAKE's adoption is a testament to the demand from stakers to unlock additional yield in DeFi.
We plan to emphasize BNB Chain significantly and aim to become the #1 liquid staking protocol within the ecosystem. To this end, we will focus on educating BNB holders about staking and liquid staking.
Additionally, by coupling closely with the vast DeFi ecosystem on the BNB Chain, we strive to make stkBNB the default asset of the BNB ecosystem and add value to the ecosystem by increasing its ratio and hence higher chain security.
As PoS economies rely on a high staking ratio to remain secure as TVL grows, liquid-staked assets will naturally become the default assets in the PoS space. pSTAKE's broader vision is to become a one-stop shop for users to stake and find DeFi opportunities across top-tier ecosystems.