Persistence One: bringing restaking to the Cosmos LST ecosystem
Thread965 words
Explains Persistence as an LSTfi-focused Cosmos L1 and its asset-agnostic restaking model, where LSTs such as stATOM and stTIA secure core-1 for XPRT rewards. Notes a 76.1% bonded ratio versus an optimal 67%, implying overpaid security.
Key claims
Core-1 bonded ratio 76.1% versus 67% optimal
EigenLayer TVL above $12.3B
Restakable LSTs include stkDYDX, stTIA, stATOM, qATOM, milkTIA
TVL on @eigencloud surpasses $12.3B already
The restaking hype is real and it's just getting started.
Soon, this game-changing narrative will hit an entire ecosystem of app-specific PoS chains with billions in idle capital.
Alpha-🧵 on the (re)staking layer of the @cosmos
1/ I spend most of my time looking into the leading narratives, trying to identify the key plays at the frontier of innovation.
Restaking has been a focus of mine for months now and the trend is clear. We're going multi-chain.
2/ The @cosmos is one of the largest PoS ecosystems out there.
Restaking will be powerful and add utility and attractiveness to liquid staking solutions like @stride_zone, @quicksilverzone or @pStakeFinance.
All app-chains combined, there are billions in staked capital.
3/ Hence, a solution that enables restaking of liquid staking derivatives of Cosmos L1 assets is big anon.
With @PersistenceOne, I found the protocol that is building exactly that.
Let me share my research anon! 📚 🔍
4/ @PersistenceOne is a decentralized Tendermint-based, IBC-enabled and app-specific L1 blockchain that is optimized for DeFi applications focused on unlocking the liquidity of staked assets.
5/ The emergence of DeFi applications has enabled users to earn yield in various forms across a broad range of assets.
This has opened up a very broad new space of yield strategies that go beyond PoS staking.
6/ However, as a simple and comparably conservative strategy, staking and contributing to network security in pursuit of yield and airdrops has remained popular.
7/ This comes with problems of its own though.
Significant potential TVL and activity is siloed away from the DeFi landscape into PoS.
Conversely, composable, financial opportunities in the broader DeFi space take away attractiveness from staking to secure PoS chains.
8/ Liquid Staking overcomes this friction.
It enables users & their liquidity to enter DeFi while staking simultaneously through liquid staking tokens (LST).
These can be used across DeFi ecosystems, earning rewards from the underlying stake, while supporting the PoS networks.
9/ As Liquid Staking becomes more broadly adopted, users are looking for opportunities to put their Liquid Staked Assets to good use and generate more yield.
With its L1 optimized for LSTfi use cases, @PersistenceOne aims to make that user journey as smooth as possible.
10/ @PersistenceOne's growing DeFi ecosystem based on liquid staking tokens plays an important role here.
@pStakeFinance for example is a multi-chain Liquid Staking Provider, allowing users to unlock liquidity of staked assets.
11/ For @Cosmos-based assets, @pStakeFinance has built a module on top of the @PersistenceOne chain.
For other assets (ETH, BNB), the implementations are built within their respective ecosystems.
12/ But there is more. Another interesting example is @dexter_zone, an interchain DEX for yield-generating assets.
More projects will be announced soon.
Could be interesting to watch.
13/ Based on top of its app-specific infrastructure layer, @PersistenceOne is now also looking to enter the Restaking game.
It aims to become the Restaking layer of the @cosmos ecosystem.
Could be big, anon.
14/ Restaking is a mechanism where locked tokens, incl. LSTs, are restaked to secure other services & generate additional yield.
Introduced on Ethereum by @eigencloud, Restaking has rapidly become one of the most dynamic sectors among staked & liquid-staked ETH use cases.
15/ Powered by @eigencloud, an entire Liquid Restaking Finance (LRTfi) ecosystem with protocols like @pendle_fi, @EtherFi, @renzoai, @KelpDAO, @Eigenpiexyz_io, etc, that allows for additional DeFi yields is emerging.
16/ The core principle of restaking is its capacity to enhance the crypto-economic security of decentralized networks and yield of initially staked tokens.
In the world of @Cosmos, the most prominent security consumers are app chains.
17/ However, most chains overpay for their security with high native token inflation.
The @PersistenceOne core-1 chain for example has a 76.1% bonded ratio, much higher than the optimal ratio of 67% (2/3rds) to maintain sufficient security.
18/ But what if it was possible to leverage XPRT staking rewards to increase chain security and incentivize the liquid staking-based DeFi economy on @PersistenceOne simultaneously?
Sounds good, right?
That’s what Restaking does.
19/ LSTs like stkDYDX, stTIA, stATOM, qATOM, and milkTIA can be restaked on @PersistenceOne to increase the chain’s economic security while earning Restaking yield from XPRT staking rewards.
There are a number of benefits that come with Restaking on @PersistenceOne 👇
20/
✦ Enhanced Security: Restaking of LSTs increases and diversifies the Persistence Core-1 chain’s economic security
✦ Dual Rewards System: Users earn rewards in the native token staked and receive a portion of XPRT staking rewards
21/
✦ Increased Utility for Cosmos LSTs: The Restaking of LSTs increases the utility and value of these assets within Cosmos ecosystem.
✦ Encouraging Long-term Holding: This Restaking mechanism incentivizes users to hold and stake their assets for longer.
22/
✦ Cosmos LRTfi: Persistence will empower other builders with novel use cases like Liquid Restaked Tokens (LRTs) and Liquid Restaking Finance (LRTfi).
23/ The introduction of Restaking on Persistence One is just the beginning.
@PersistenceOne aims to turbocharge this feature, diving deep into new assets and pioneering innovations in (re)staking and rewards mechanisms.
24/ @PersistenceOne will provide staking infrastructure that enhances UX and provides maximum value to users.
It enables the creation of LRTs, that secure multiple chains at once, and allow for participation in DeFi.
An ecosystem initially fueled by LSTs from @pStakeFinance.
25/ I think the vision behind this is big.
The @cosmos ecosystem bears a lot of potential for this.
If the restaking layer is further generalized in the future, the spectrum of potential use cases is even broader.
Keep an eye on multi-chain restaking, anon.
That's a wrap! I hope you've found this thread helpful! 🫡
Make sure to follow me @zerokn0wledge_ to stay ahead of the curve on the restaking narrative going multi-chain!
Like/Repost of the below post is also highly appreciated! 🙏👇
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