Gambling cryptocurrencies on proof-of-stake blockchain networks has become one of the popular methods of generating consistent returns on crypto. While DeFi offers the potential for spectacular returns at a very high risk, the stakes offer a more stable return of around 15% on average, based on current figures from stakingrewards.com. Still considerably higher than anything you’d get from a bank, but generally with significantly less risk.
However, the fact that gambling requires a token lock means that currently, it is a decision of one or the other. If a user with a certain appetite for risk wants to protect himself against the reliability of his participation income, he would have to dispose of his funds in order to use them. This is a feature rather than a bug – it is designed to improve the security of a blockchain during black swan events. However, it also ensures that a significant amount of liquidity is excluded from the broader crypto-financial ecosystem.
Now, Persistence is about to launch the next product in its suite: pTO BET. Its aim is to overcome the challenge of participation, providing users with a simple and intuitive means of participation and unlocking liquidity in a proof-of-stake market worth more than $ 600 billion. And all this while improving the overall security and decentralization of the engagement ecosystem.
What is pStake?
pSTAKE is a liquid betting protocol that allows users to unlock the liquidity of their wagered assets. How does it work? Well, instead of betting tokens with the platform directly, users will bet them through the pSTAKE protocol. In return, the user will receive 1: 1 linked pTOKEN. These tokens represent the user’s participation in the Ethereum blockchain and can be used in the Ethereum DeFi ecosystem.
Under the hood, pSTAKE delegates assets to one of its whitelisted validators on the underlying PoS network the user wants to bet on. In this way, the user receives their participation rewards. However, the pTOKENs that receive from the pSTAKE protocol can be provided as liquidity to the DEX groups, earning a portion of the transaction fees, or they can be provided to the decentralized loan groups in exchange for interest. The returns generated from these DeFi deposits are added to the rewards wagered, increasing the profit potential of the same initial bet.
Cosmos is the first network to support the pSTAKE application, followed by Persistence.
Another tool in the persistence box
Persistence is emerging as a hot new competitor in DeFi, and it’s also flying the flag on behalf of a multi-chain ecosystem. pSTAKE is built on Ethereum and Cosmos, and Persistence works with many other platforms in its various offerings and operations. The project already operates a decentralized commodity exchange called ComDex, which recently approved $ 100 million in transaction volume.
The release of pSTAKE is supported by Persistence’s credentials in the Proof of Stake field. The project also operates Audit.One, a participation-as-a-service solution that protects more than ten networks, including Polygon, Cosmos, Terra, NEAR, and the Persistence platform itself.
Persistence has also recruited a group of established and professional validators for its network, including Band Protocol in Thailand, Cosmostation in South Korea, Tavis Digital in Switzerland, and Huobi Pool in China. The first 16 validators onboarding by Persistence collectively secured more than $ 7 billion in assets. Therefore, the project has a well-established network and reputation among the PoS community, offering a safe way for any user to unlock their staked liquidity with pStake.
pSTAKE will be released on June 15 at 12pm UTC.