Expand pSTAKE liquid staking support to Chihuahua and Agoric chains with the launch of stkHUAHUA and stkBLD

Summary

pSTAKE has launched liquid staking solutions for ATOM, DYDX, OSMO, and STARS since it went live natively on the Persistence core-1 chain in January 2023. Currently, pSTAKE has a total of ~$20M in TVL, with ~$8.5M TVL in Cosmos, representing ~42% 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 HUAHUA (Chihuahua) and BLD (Agoric) with the launch of stkHUAHUA and stkBLD.

stkHUAHUA Product Features

• Liquid stake HUAHUA to mint stkHUAHUA

• Unstake stkHUAHUA is subject to a ~21-day unbonding period

• Autocompounding of HUAHUA staking rewards with an exchange rate model for stkHUAHUA

• 10% protocol fee charged on auto-compounded staking rewards

• Flash Unstake stkHUAHUA for HUAHUA with an additional 1% fee on pSTAKE with an innovative mechanism that matches daily deposits with withdrawals

• Validator delegation strategy: For HUAHUA liquid staking, the initial validator set is suggested to be determined based on the following parameters:

    Voting Power - 0.05% to 5%
    Commission - 5% to 10%
    Uptime (last 30 days) - 95% to 100%
    Governance Participation (last 20 proposals) - 60% to 100%
    Part of the active set for the last 180 days without any slashing instance
  

Simulating the abovementioned parameters, the output is a set of 80 validators, which will be whitelisted to receive delegations via pSTAKE if this proposal passes. Due to technical restrictions, pSTAKE is implementing a whitelisting mechanism for stkHUAHUA. In the future, pSTAKE will aim for progressive decentralization and seek to implement an automated strategy.

stkBLD Product Features

• Liquid stake BLD to mint stkBLD

• Unstake stkBLD is subject to a ~21-day unbonding period

• Autocompounding of BLD staking rewards with an exchange rate model for stkBLD

• 10% protocol fee charged on auto-compounded staking rewards

• Flash Unstake stkBLD for BLD with an additional 1% fee on pSTAKE with an innovative mechanism that matches daily deposits with withdrawals

• Validator delegation strategy: For BLD liquid staking, pSTAKE will implement the new automated validator stake delegation and rebalancing strategy that focuses on decentralizing the stake on the underlying network. The mechanism will automatically select and rebalance the stake amongst all the validators chosen automatically based on the following parameters:

    Voting Power - 0.05% to 5%
    Commission - 5% to 10%
    Uptime (last 30 days) - 95% to 100%
    Governance Participation (last 20 proposals) - 60% to 100%
    Part of the active set for the last 180 days without any slashing instance
  

Security

• stkHUAHUA and stkBLD will be a non-custodial liquid staking solution leveraging 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
• pSTAKE on Cosmos has an active Immunefi bug-bounty program

Incentivization

Initially, the priority will remain to bootstrap deep stkHUAHUA and stkBLD liquidity on DEXs like Dexter. Both stkHUAHUA and stkBLD 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.

Final Thoughts

pSTAKE is all set to expand support in Cosmos by expanding the liquid staking support for HUAHUA and BLD based on the features and parameters suggested above. The pSTAKE community is encouraged to share their opinion by participating in these important governance proposals and forum discussions.

• Vote 'FOR' if you support onboarding HUAHUA and BLD to pSTAKE with the proposed parameters

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

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