DeFi’s new liquid staking protocol, pSTAKE, is set to implement Ethereum 2.0 ($ ETH) liquid staking. Once implemented, pSTAKE will issue $ stkETH to the $ ETH stacker as a liquid stake asset to participate in DeFi.
Stakers benefit greatly from the Proof of Stake (PoS) consensus mechanism. This is a practical and direct approach to protecting your blockchain network and is a surefire way for users to bet assets and participate in network governance to earn high APY. Therefore, the move to Ethereum’s PoS-based Ethereum 2.0 (scheduled for the third quarter of 2022) is one of the most anticipated events in the blockchain industry.
Ethereum currently implements most of DeFi’s extensive lending, borrowing, and agricultural protocols. As such, the imminent migration to PoS networks is ready to drive liquidity and bring additional scalability to the network. However, the long staking period of PoS assets and the ultimate liquidity limit have raised concerns among stackers.
The pSTAKE protocol addresses this issue. Future implementations of Ethereum 2.0 will unleash new liquidity for $ ETH, allowing users to take full advantage of staking while earning additional rewards across DeFi. The public pSTAKE $ stkETH testnet has recently been published and we have seen users bet ETH on pSTAKE and receive stkETH, a tokenized representation of ETH. stkETH can be used as a whole EVMYield A base ecosystem for earning surplus profits through activities such as agriculture and lending.
Liquid staking for DeFi’s new frontier
PoS’s high returns and efficiency make PoS one of DeFi’s key liquidity drivers. However, assets bet on the PoS protocol will not be accessible during the betting period. Users cannot use the bet assets to access other investment opportunities, resulting in a pool of liquidity that is idle and underutilized.
Therefore, DeFi innovators are looking for liquidity staking to best utilize the liquidity of PoS assets. You can also create tokenized derivatives for PoS assets through this process. PoS assets themselves remain fixed, but these tokenized derivatives can represent them elsewhere for a variety of activities such as decentralized lending, liquidity mining, yield farming, etc. Brings additional benefits.
In this regard, pSTAKE is an innovative protocol aimed at making liquid staking a new frontier for DeFi. This allows users to bet their digital assets on the platform and receive a 1: 1 peg tokenized derivative called stkASSET. Next, pSTAKE bets the accumulated PoS assets on the top validators on the underlying network. This allows users to earn staking rewards on the PoS network while taking advantage of investment opportunities in other protocols.
pSTAKE is a cosmos / tender mint based signature product. Persistence Communication network. Persistence not only makes liquid staking more accessible, but also creates an ecosystem of products that use stkASSET in their operational core. This adds to the usefulness of this newly unleashed liquidity, making DeFi a configurable and capital-efficient industry.
Access new dimensions with DeFi
As the transition to DeFi 2.0 is underway, the industry is moving from the speculative stage to the value creation stage. The current focus is to address real financial issues in order to provide better economic infrastructure to our users. And in this new phase, unleashing underutilized and inaccessible liquidity in PoS networks is critical to the growth of the industry as a whole. pSTAKE has made great strides in this regard, and the implementation of Ethereum 2.0’s liquid staking opens the door to a new dimension of DeFi with the new capital of the most popular PoS assets.
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