Expand pSTAKE liquid staking support to XPRT and STARS with the launch of stkXPRT and stkSTARS

Summary

pSTAKE has launched liquid staking solutions for ATOM, DYDX, and OSMO since it went live natively on the Persistence core-1 chain in January 2023. Currently, pSTAKE has ~$7M TVL in Cosmos, representing ~50% of the protocol’s total TVL.

Onboarding new networks to pSTAKE’s liquid staking has always been community-driven and based on the eight key pillars of expansion.

This is a signaling proposal to expand pSTAKE’s liquid staking support in Cosmos by onboarding XPRT (Persistence One) and STARS (Stargaze) with the launch of stkXPRT and stkSTARS.

stkXPRT Details and Features

• Liquid stake XPRT to mint stkXPRT.
• Unstake stkXPRT subject to a ~21-day unbonding period.
• Autocompound XPRT staking rewards with an exchange rate model for stkXPRT.
• Superfluid LP: This feature will allow natively staked XPRT to convert into a bonded stkXPRT/XPRT LP position on Dexter (DEX on Persistence One) in a single click.
• Liquid Staking is capped at 10% of the total XPRT staking ratio because of the Global Cap associated with the Liquid Staking Module on the Persistence Core-1 chain.
• 0% protocol fee.

stkSTARS Details and Features

• Liquid stake STARS to mint stkSTARS.
• Unstake stkSTARS subject to a ~14-17 days unbonding period.
• Flash Unstake stkSTARS for STARS instantly with an additional 1% fee on pSTAKE.
• Autocompound STARS staking rewards with an exchange rate model for stkSTARS.
• 10% protocol fee charged on auto-compounded staking rewards.

Security

• stkXPRT and stkSTARS will be non-custodial and leverage the Inter Blockchain Communication (IBC) tech stack, similar to other stkTokens in Cosmos.
• pSTAKE on Cosmos is audited by leading security firms like Halborn and Oak Security. Additionally, Oak Security and Hexens have conducted two new audits for stkXPRT Superfluid LP.
• pSTAKE on Cosmos has an active Immunefi bug-bounty program.

Incentivization

Initially, the priority will remain to bootstrap deep stkXPRT and stkSTARS liquidity on DEXs like Dexter. Both stkXPRT and stkSTARS will have more DeFi utilities across multiple protocols in Cosmos.

PSTAKE incentives will be used from an earlier proposal passed by the PSTAKE governance to increase the adoption of pSTAKE in Cosmos.

Stake Delegation

pSTAKE follows an automated validator stake delegation and rebalancing strategy that focuses on decentralizing the stake on the underlying network.

A weighted scoring mechanism with decentralization parameters like voting power, commission, uptime, slashing history, and governance participation will decide the final validator set and the amount of stake delegation to each validator in this set. The mechanism also automatically rebalances the stake amongst all the validators.

• Voting Power: 0.05% to 5%
• Commission: 5% to 10%
• Uptime (last 180 days): 95% to 100%
• Governance Participation (last 180 days): 60% to 100%
• Part of the active set for the last 180 days without any slashing instance

Final Thoughts

pSTAKE is all set to expand liquid staking support to XPRT and STARS. The pSTAKE community is encouraged to share their opinion by participating in these important governance proposals.

• Vote 'FOR' if you support onboarding XPRT and STARS to pSTAKE with the proposed parameters

• Vote 'AGAINST' if you are against onboarding XPRT and STARS to pSTAKE with the proposed parameters

• Vote 'ABSTAIN' if you do not want to participate in this proposal.