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In a major development for Bitcoin-native DeFi, pSTAKE Finance recently unveiled liquid staking for Bitcoin. Based on Babylon's Bitcoin staking protocol, this solution aims to simplify Bitcoin staking and provide new yield generation opportunities.
Breaking: pSTAKE Finance is launching a premier liquid staking solution for Bitcoin, built atop @babylon_chain.
ā pSTAKE Finance (@pStakeFinance) May 15, 2024
pSTAKE aims to become a catalyst for BTCfi growth by creating a direct pathway to generate #BTC staking yield.
Learn more šš¼ https://t.co/XV6KE07ciL pic.twitter.com/6R7hVODcor
What is pStake? Let's find outā¦
What is pStake?
pSTAKE Finance, backed by Binance Labs, is a multi-chain liquid staking protocol designed to unlock the liquidity of staked assets. It aims to revolutionize the staking process by allowing users to stake their assets while maintaining liquidity.
Their approach enables stakers of Proof-of-Stake (PoS) tokens to earn staking rewards and generate additional yield through decentralized finance (DeFi) applications.
How pSTAKE Works
Users who stake their PoS tokens with pSTAKE receive staked representative tokens (stkASSETs). These tokens can be used in DeFi to generate additional yield on top of staking rewards. The process is straightforward:
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Staking PoS Tokens: Users deposit their PoS tokens into pSTAKE and receive ERC-20 tokens (pTOKENs) in return at a 1:1 ratio.
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Using pTOKENs: These pTOKENs can then be used in various DeFi activities on Ethereum to earn additional profits.
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Receiving stkASSETs: Users also receive stkASSETs, which represent their staked position and maintain liquidity. These stkASSETs can be used in DeFi applications for further yield generation.
Key Features of pSTAKE:
pBridge: The pSTAKE protocol uses a bridge called pBridge, which facilitates the transfer of value between blockchains such as Ethereum, Cosmos, BNB Chain, and Persistence. This bridge allows minting and burning tokens at a 1:1 ratio, staking and unstaking tokens, and claiming staking rewards.
Double Token Model: pSTAKEās dual token model simplifies staking and rewards. pTokens are minted at a 1:1 ratio with staked assets. These pTokens can be staked with pSTAKE to mint stkTokens, which can be used in the DeFi ecosystem for additional profits.
Interchangeability: All stkTokens are interchangeable and represent staked assets across multiple validators. This distribution of stakes across validators mitigates hacking risks.
PSTAKE Token: PSTAKE is the governance and incentive token of the pSTAKE protocol. It allows users to participate in governance activities and receive rewards. The total supply is set at 500 million, with 439 million currently in circulation. The tokens are distributed across community rewards, investors, and pre-token generation events (TGE).
pSTAKE Finance aims to be user-friendly, making liquid staking accessible to everyone. The protocol supports liquid staking on various networks, including Cosmos, Osmosis, and dYdX.
The protocol plans to expand support to more chains and assets in the future. In light of this, pSTAKE is now developing staking solutions based on Bitcoin, reflecting its conviction that bitcoin has the potential to generate yield.